New HampshireDepartment of JusticeOffice of the Attorney General

News Release

For Immediate Release
February 4, 2014

David A. Rienzo, Assistant Attorney General
Consumer Protection Bureau
(603) 271-3643

State v. Brady Sullivan - Paugus Woods LLC

Attorney General Joseph Foster announced today that his office has reached a settlement with Brady Sullivan Paugus Woods LLC in a lawsuit filed by the Consumer Protection Bureau in Belknap County Superior Court. That settlement was approved by the Court on January 27, 2014.

The Attorney General's Office filed a lawsuit against Brady Sullivan alleging that the modular homes it sold in the Villas at Paugus Woods subdivision on White Oaks Road in Laconia were improperly described in promotional materials. Specifically, the Attorney General alleged that homes were incorrectly described in the public offering statement as being compliant with all applicable building and housing codes, when in fact the homes exhibited numerous defects. Among the defects repeatedly found were the failure to properly attach the modules to their foundations, violations of electrical, heating/ventilation codes, inadequate insulation and failure to properly fasten the modules together and to provide proper foundational support.

"A home is the most significant purchase many of us will make in our lifetimes," Attorney General Foster said. "Because of the importance of such a purchase, New Hampshire law requires that homes in subdivisions of this kind be accurately described in promotional materials and not contain the type of substantial defects that were discovered in these homes. We are pleased that the matter was brought to our attention and that we were able to protect these homeowners."

At the Attorney General's direction, an independent engineer was engaged to inspect every home in the subdivision. All of the defects identified as a result of those inspections have been repaired at Brady Sullivan's expense.

Under the terms of the settlement, Brady Sullivan, if requested by the homeowner must repurchase from the owners at the original purchase price five homes that were identified as needing the most significant repair. Brady Sullivan must also pay $85,000 in administrative assessments and investigative costs to the State of New Hampshire.

New Hampshire Department of Justice
33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658