San Luis Ranch homeowners sue developer over home defects, mold

May 8, 2025 | Uncategorized

It took less than a month for building issues to present themselves in Jeannie and Matthew Pleasant’s new home in San Luis Ranch — and now, the couple is taking developer Coastal Community Builders to court for damages.

After moving into their brand-new home in October 2021, the couple said defects started to become evident almost immediately. Their first written notice to Coastal Community Builders identified issues such as bowing walls, cracks in drywall, misaligned trim and water intrusion near door jambs, according to the Pleasants’ lawsuit.

But that was only the tip of the iceberg of building issues that the Pleasants say have rendered their home uninhabitable — issues developer Coastal Community Builders have failed to address under the home’s warranty, the lawsuit alleged.

The ongoing dispute over whether Coastal Community Builders is obligated to repair these issues culminated in the April 7 lawsuit against the developer, seeking relief for the home’s “structural instability, water intrusion, code violations, defective plumbing, toxic mold and health hazards.”

“As a result of CCB’s substandard construction and repeated failure to remedy known defects, Plaintiffs have experienced severe disruption, out-of-pocket expenditures, health concerns related to mold and significant diminution in the value of their home,” the lawsuit said.

San Luis Ranch development is well underway in this view overlooking Madonna Road from June 26, 2023, on what was previously farmland owned by Ernie Dalidio.
San Luis Ranch development is well underway in this view overlooking Madonna Road from June 26, 2023, on what was previously farmland owned by Ernie Dalidio.

What does San Luis Ranch lawsuit allege?

According to the lawsuit, the Pleasants submitted more than a dozen separate written notices requesting repairs for building defects between late 2021 and April 2024.

Coastal Community builders responded to some of these requests between late 2021 and late 2022, though the lawsuit claimed the subcontractors hired to make the repairs failed to address the underlying causes of problems such as improper structural framing, excessive soil settlement, and poor drainage.

Other issues included a sagging balcony, leaking windows, a lack of drainage around the home and floors, and walls that were not plumb, according to the lawsuit.

The Pleasants hired DJ Design to conduct an inspection in February 2024, which documented extensive structural and finish defects, to the tune of a $437,500 price tag for repairs, according to the lawsuit.

A separate inspection the following month by a licensed mold remediation professional confirmed mold growth behind the bathroom and shower walls, which would cost around $45,000 to repair, the lawsuit said.

Construction continues on the San Luis Ranch housing development off Madonna Road in San Luis Obispo, on April 16, 2024.
Construction continues on the San Luis Ranch housing development off Madonna Road in San Luis Obispo, on April 16, 2024.

According to the lawsuit, the Pleasants are seeking financial relief for damages, repair and investigative costs, lost home value, attorney fees, medical expenses caused by defects, relocation expenses and any punitive damages authorized under the law.

Developer says warranties cover all homes, condos it constructs

The Pleasants are not the only household in San Luis Ranch to launch lawsuits related to the condition of their new homes against Coastal Community Builders.

In an email to The Tribune, Coastal Community Builders said one other legal claim was filed by a San Luis Ranch homeowner for similar reasons, but was resolved to the satisfaction of all parties by mutual agreement.

Coastal Community Builders said its fit-and-finish warranty covers every home and condominium it constructs, covering any potential deficiencies in the products’ workmanship.

“CCB has a policy not to comment directly on cases pending litigation,” the developer said in an email. “We can, however, confidently say that we take all credible allegations of construction defects seriously, and we diligently pursue repairs and remedies to rectify them when they occur.”

Construction continues on the San Luis Ranch housing development off Madonna Road in San Luis Obispo, on April 16, 2024. The San Luis Ranch housing development will include a hotel and marketplace.
Construction continues on the San Luis Ranch housing development off Madonna Road in San Luis Obispo, on April 16, 2024. The San Luis Ranch housing development will include a hotel and marketplace.

In a statement, the developer asserted its commitment to building quality products.

“As a builder operating on the Central Coast for over 35 years, CCB takes great pride in our projects and in our track record for customer satisfaction,” the developer said in a statement. “We know as well as anybody that we aren’t just building houses, but rather we are building homes that families will spend a lifetime creating memories in.”

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