Utah Homeowners Sue Builders Over Sinking Homes in Nephi Development

Lawsuit Filed Over Structural Damage

NEPHI, Utah — More than 20 homeowners in a central Utah subdivision have filed a lawsuit against builders and developers, claiming their newly constructed homes are sinking and developing serious structural problems.

The civil complaint, filed earlier this year, involves 21 households in the Winn Ridge Community, located about 80 miles south of Salt Lake City. The plaintiffs allege they were misled into believing their homes met proper safety and construction standards.

Instead, the homeowners say their properties, built in 2022 and 2023, are showing signs of major damage, including cracks in walls, shifting foundations and uneven floors.

Homeowners Describe Worsening Conditions

Residents report a range of issues affecting their homes. These include drywall cracks around doors and windows, basement floor fissures and doors that no longer close properly. Some plaintiffs also claim the cracks may be allowing in “dangerous levels of radon.”

Allegations Against Builders and Engineers

The lawsuit names Riding Siding Construction, which allegedly built the homes, and Salisbury Homes, which handled sales. It also names three sales agents and GeoStrata, the company that prepared the soil report.

According to the complaint, the homes were built on soil with a “moderate to high collapse potential.” The plaintiffs allege that builders failed to follow key recommendations outlined in a geotechnical report, including adding proper fill soil and conducting necessary testing and inspections.

The lawsuit states that required safeguards were not followed, including foundation drainage measures and oversight by a geotechnical engineer during construction.

Attorney Chase Wilde, representing the homeowners, said the case centers on undisclosed risks.

“The fraud alleged by homeowners involves the failure to disclose critical information about the condition of these lots and how the soil was—or was not—properly prepared,” Wilde told FOX 13.

High Repair Costs and Ongoing Stress

Repair estimates for some homes are substantial. One couple received an estimate exceeding $267,000 to stabilize their property, which would require lifting the structure and installing support piers.

“They don't necessarily want to move,” Wilde said. “They don't want to sell their homes. They just want the homes repaired.”

The complaint states that homeowners have experienced “severe stress and worry” over both their financial investment and their safety.

Plaintiffs are seeking damages that could total millions of dollars, with final amounts to be determined at trial.