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Indianapolis homebuilder settles lawsuit alleging it restricted negative reviews
Indianapolis homebuilder settles lawsuit alleging it restricted negative reviews

Yahoo

time07-02-2025

  • Business
  • Yahoo

Indianapolis homebuilder settles lawsuit alleging it restricted negative reviews

(This story was updated to add new information.) A major Indianapolis homebuilder has settled a lawsuit brought by the state of Indiana alleging that the company threatened fines against any homebuyer who publicly shared negative statements about the company. Indiana Attorney General Todd Rokita accused Davis Homes of including a "gag clause" in contracts that would impose a $2,000 per day fine on any homebuyer who made "statements to the media, on social media, the internet, or neighbors which portray (Davis) in a negative light," according to court documents. Davis Homes, an Indianapolis-based builder run by CEO Bradley Davis, says it has built more than 25,000 homes across the state. The federal Consumer Review Fairness Act of 2016 outlaws contract clauses that suppress criticism of a seller's goods and services. The law also bans penalties for negative comments or reviews. Davis Homes agreed to the settlement while admitting no wrongdoing and denied the state's allegation that the company violated federal law, according to a Thursday press release from the attorney general's office. Davis Homes did, however, sign an agreement with the state saying it won't interfere with customers' freedom to share negative reviews. The company will stop including the alleged "gag clause" in new contracts and will not enforce the provision with past homebuyers, under the settlement agreement. The provision restricting homebuyers from speaking poorly of Davis Homes was included only in some agreements for custom homes, a company spokeswoman said in a statement to IndyStar Thursday. The builder has never charged a homebuyer for the associated $2,000 per day penalty, the statement said. Davis Homes stopped using the clause altogether early last year, according to the statement. "Davis Homes seeks to have an open dialogue with clients from the moment we meet through the final inspection and closing," the statement concludes, "and remains open to discussing clients' experiences throughout the homebuilding process." Any Indiana consumers who signed a contract that contains a similar clause restricting or penalizing negative reviews of a business can file a complaint with the Consumer Protection Division of the Indiana attorney general's office at or by calling 1-800-382-5516. Email IndyStar Housing, Growth and Development Reporter Jordan Smith at JTsmith@ Follow him on X: @jordantsmith09 This article originally appeared on Indianapolis Star: Indianapolis homebuilder sued by state for 'gag clause' in contracts

Matlock: Government to decide on plan for hundreds of homes
Matlock: Government to decide on plan for hundreds of homes

BBC News

time27-01-2025

  • Business
  • BBC News

Matlock: Government to decide on plan for hundreds of homes

A plan to build hundreds of homes in Derbyshire will be decided by the government after a district council refused the Dales District Council refused outline permission for a development of 423 homes in the Gritstone Road area of Matlock in March, largely due to the perceived flood Davis Homes is seeking to build 345 and 78 homes as part of a hybrid application on a site known locally as the Matlock Wolds, and has appealed the council's decision.A public inquiry will now be held by the planning inspector, which is due to start on 11 March. The council held an "extraordinary" meeting on Thursday to discuss the inquiry will focus purely on the 345 rejected homes, a short report published for Thursday's meeting added that the council is retaining a slew of private planning experts from previous appeals for the upcoming inquiry, to be funded from a £250,000 pot agreed by councillors last new report says there is a risk that the total £250,000 pot of money may not be enough should the inspector decide the council must meet some of the developer's appeal costs, and more money would need to be approved. The council's rejection of the plans largely hinged on the perceived flood risk posed by development on green fields and by large flood water collection ponds forming part of the scheme, the Local Democracy Reporting Service than 2,500 people signed a petition by the Wolds Action Group opposing the scheme, and a total of 462 objection letters were submitted to the council.A council statement said the extraordinary meeting confirmed its view that the plans would have "adverse impacts" on Matlock in their current form."However, the unequivocal advice of technical and legal experts hired by the council is that these impacts can be overcome by planning conditions," the statement statement said the council "reluctantly agreed" to focus on "securing the best possible planning conditions attached to any permission the Planning Inspector might grant, rather than defending refusal".It added: "It was agreed that to ignore such clear expert advice would not only be irresponsible but also pose significant financial risks to the council, which would be borne by taxpayers of the whole of the Derbyshire Dales."

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