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From time to time, we are a party to ongoing legal proceedings in the ordinary course of business.
−Removed: We do not believe the results of currently pending proceedings,
−Removed: individually or in the aggregate, will have a material adverse effect on our business, financial condition, results of operations or liquidity.
−Removed: Weyerhaeuser Lawsuit
−Removed: We are currently involved in the appeals phase of civil litigation related to defective products provided by Weyerhaeuser NR Company (“Weyerhaeuser”) (NYSE:
−Removed: WY), one of our
−Removed: lumber suppliers.
−Removed: Our Colorado division builds a number of floor plans that include basements using specialized fir lumber.
−Removed: On July 18, 2017, Weyerhaeuser issued a press release indicating a recall and potential solution for TJI Joists with Flak
−Removed: Jacket Protection manufactured after December 1, 2016.
−Removed: The press release indicated the TJI Joists used a Flak Jacket coating that included a formaldehyde-based resin that could be harmful to consumers and produced an odor in certain newly
−Removed: constructed homes.
−Removed: We had 38 homes impacted by the potentially harmful and odorous Flak Jacket coating and incurred significant costs directly related to Weyerhaeuser’s defective TJI Joists.
−Removed: Accordingly, we sought remediation and damages from
−Removed: Weyerhaeuser.
−Removed: The press release by Weyerhaeuser had a pronounced impact on our sales and cancellation rates in Colorado.
−Removed: We filed suit on December 27, 2017—Dream Finders Homes LLC and DFH Mandarin, LLC v.
−Removed: Weyerhaeuser NR Company, No.
−Removed: (District Court, City and County of Denver, State of Colorado)—and included claims against Weyerhaeuser for manufacturer’s liability based on negligence, negligent misrepresentation causing financial loss in a business transaction and fraudulent
−Removed: Weyerhaeuser asserted a counterclaim asserting an equitable claim for unjust enrichment.
−Removed: After completion of a jury trial on November 18, 2019, the District Court issued a verdict in our favor on our claims, awarding Dream Finders
−Removed: Homes LLC $3,000,000 in damages and DFH Mandarin, LLC $11,650,000 in damages.
−Removed: On February 21, 2020, the District Court dismissed Weyerhaeuser’s counterclaim.
−Removed: Weyerhaeuser appealed the Colorado District Court’s jury verdict and on December 2,
−Removed: 2021, the Colorado Court of Appeals reversed the judgment entered against Weyerhaeuser for negligence, negligent misrepresentation and fraudulent concealment.
−Removed: As a result, Dream Finders Homes LLC and DFH Mandarin, LLC filed a petition for writ
−Removed: of certiorari to the Colorado Supreme Court on January 13, 2022 to appeal the Colorado Court of Appeals ruling, Dream Finders Homes LLC and DFH Mandarin, LLC v.
−Removed: Weyerhaeuser NR Company, Case No.
−Removed: 2022SC24 (Colorado Supreme Court)—and that appeal
−Removed: is currently pending.
−Removed: We are awaiting the Colorado Supreme Court’s decision on whether it will grant our petition for writ of certiorari.
−Removed: We have incurred all costs to date related to the Weyerhaeuser matter and have recognized no gain on the
−Removed: damages awarded to us by the District Court.
−Removed: There are no recorded reserves related to potential damages in connection with the Weyerhaeuser matter or any other legal proceedings to which we are a party, as any
−Removed: potential loss is not currently probable and reasonably estimable under GAAP.
−Removed: However, the ultimate outcome of any actions or proceedings, including any monetary awards against us, is uncertain, and there can be no assurance as to the amount of
−Removed: any such potential awards.
−Removed: Additionally, such lawsuits may divert management’s efforts and attention from ordinary business operations.
−Removed: If the final resolution of any such litigation is unfavorable, it could have a material adverse effect on our
−Removed: business, financial condition, results of operations or liquidity.
+Added: Commitments and Contingencies – Legal Proceedings to our consolidated financial statements for information about certain pending legal proceedings.
MINE SAFETY DISCLOSURES
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.