PulteGroup’s Del Webb Communities has been hit with a nearly $13.6 million penalty awarded to 460 homeowners in one of the largest construction defect cases in Arizona’s history. The settlement amount was determined last week by an arbitration committee as part of an ongoing lawsuit brought by 873 homeowners in Sun City Grand, a retirement community in Surprise, Ariz.

The group of homeowners began the complaint back in 2006 for claims of poor construction. Pulte executives contend that the suit has prevented them from making the requested repairs, but homeowners say that when they asked that defects be fixed, the builder refused, according to AZCentral.com.

The settlement, which includes $7.9 million in damages and $5.7 million in court and legal costs, falls far short of the $50 million the owners asked for, but comes in above the $2 million amount Pulte requested.

Almost half of the homeowners, 413 households, did not take part in the arbitration and are awaiting a trial date for the Maricopa County Superior Court. According to the AZCentral, the plaintiffs make up about 10% of the Surprise community’s population.

Claire Easley is a senior editor at Builder.

Learn more about markets featured in this article: Phoenix, AZ, Greenville, SC.