An Olshan Foundation lawsuit is harder to file than most homeowners expect, because Olshan’s standard contract requires that disputes go to binding arbitration through the American Arbitration Association rather than to court. Courts in Texas, Alabama, and other states have enforced that clause and sent homeowners back to arbitration when they tried to sue. You can still pursue claims for defective work, broken warranty promises, and deceptive practices, but you will almost always pursue them in arbitration, and only if you meet strict deadlines and any pre-suit notice your state requires.
Why Your Contract Probably Blocks a Courtroom Lawsuit
The arbitration clause is the single most important document in the file. Olshan’s standard agreements say that “any dispute, controversy, or lawsuit between any of the parties to this agreement about any matter arising out of this agreement, shall be resolved by mandatory and binding arbitration.”1FindLaw. Olshan Foundation Repair Company of Mobile LP v. Schultz This language has appeared in Olshan contracts across multiple states and multiple years.
Federal law backs those clauses. The Federal Arbitration Act makes written arbitration agreements in commercial contracts “valid, irrevocable, and enforceable” unless standard contract defenses like fraud or unconscionability apply.2Office of the Law Revision Counsel. 9 USC 2 – Validity, Irrevocability, and Enforcement of Agreements to Arbitrate When homeowners have filed lawsuits in court, Olshan has moved to compel arbitration and won. The Texas Supreme Court addressed this directly in consolidated cases involving multiple Olshan customers, and the Alabama Supreme Court reached a similar result.3FindLaw. In Re Olshan Foundation Repair Company
Arbitration is not automatically worse than court, but it is different. You lose the right to a jury. Discovery tends to be more limited. The arbitrator’s decision is usually final, with very narrow grounds for appeal. Challenging the clause itself requires showing it was unconscionable or that you were fraudulently induced into signing. Those arguments rarely succeed.
Read your contract before doing anything else. If the clause is there, plan for arbitration.
What You Can Actually Claim
Whether the forum is arbitration or court, the underlying legal theories are the same.
Breach of Contract
The most direct claim is that Olshan failed to do what the contract promised. Missed deadlines. Work not performed in the areas the contract identified. Materials different from what was specified. A job left incomplete. You need to show what the contract required, how Olshan fell short, and what that failure cost you. Save the original contract, any change orders, and every written communication.
Negligence
A negligence claim argues that Olshan failed to perform its work with the care and skill a competent foundation repair company would use. Four elements: a duty of care (Olshan owed you one as your contractor), a breach through substandard work, causation, and actual harm. Expert testimony from an independent structural engineer is almost always necessary to show what a reasonable contractor would have done differently.
Fraud and Misrepresentation
If Olshan made false statements about the condition of your foundation, the effectiveness of a particular repair method, or the expected longevity of the work, you may have a fraud claim. This is harder to prove than breach of contract. You must show Olshan knew the statements were false or made them recklessly, intended you to rely on them, and that you did rely on them to your financial detriment. Sales presentations, inspection reports, and marketing materials become the key evidence.
What the Cable Lock Warranty Actually Covers
Olshan markets a lifetime transferable warranty on its Cable Lock system. It sounds comprehensive; it isn’t. The warranty covers future settlement only in the specific areas where Olshan installed its system. If the company underpinned only part of your home’s exterior, settlement in other areas or the interior would not be covered.4Olshan Foundation Repair. Cable Lock Available Lifetime Transferable Warranty The warranty can be transferred to a new owner only if you complete a transfer form, pay a fee, and return the paperwork within 90 days of the property sale.
Common warranty disputes involve Olshan claiming a property falls outside its service area, local branches refusing to honor warranties issued by other locations, and difficulty getting any response to warranty claims at all. A company that systematically ignores warranty requests may face liability beyond breach of warranty, reaching into state consumer protection statutes.
One federal wrinkle: the Magnuson-Moss Warranty Act, which gives consumers additional rights when companies offer written warranties on consumer products, has limited application to foundation repair. The Act covers warranties on replacement parts and materials, but warranties that apply solely to a contractor’s workmanship are not subject to it. Where a written warranty covers both materials and workmanship together, the entire warranty must comply with the Act.5eCFR. Part 700 – Interpretations of Magnuson-Moss Warranty Act Whether Olshan’s warranty triggers Magnuson-Moss protections depends on how it is worded and what it specifically covers.
Deadlines That Can End Your Case Before It Starts
Every claim has a filing deadline, and missing it kills your case regardless of how strong it is. Two different deadlines can apply. Confusing them is one of the most common mistakes homeowners make.
The statute of limitations sets how long you have to file after you discover the damage (or reasonably should have discovered it). For construction defect claims, this period varies by state but is commonly between two and six years. Many states apply a “discovery rule,” meaning the clock does not start until you actually notice the problem or a reasonable homeowner would have. That matters here because foundation defects can take years to become visible.
The statute of repose is a harder deadline. It sets an absolute cutoff measured from when the work was completed, regardless of when you discovered the damage. Across states, these periods range from roughly four to fifteen years. If the repose period has expired, you cannot file a claim even if the defect was completely hidden until yesterday. States vary widely on both the length and what triggers them, so check your state’s specific deadlines early.
Steps You Have to Take Before Filing
Two hurdles come before any formal legal action. Skipping either can end your case.
First, if your Olshan contract contains the standard arbitration clause, you must arbitrate rather than sue. Filing in court anyway will almost certainly result in Olshan moving to compel arbitration, which courts routinely grant. You start arbitration by filing a demand with the American Arbitration Association, describing the dispute, identifying the relief you want, and paying the filing fee.
Second, roughly half of all states have “right to cure” or “notice and opportunity to repair” laws that apply to construction defect claims. These require homeowners to send the contractor a written notice describing the defect before initiating any legal action. The notice gives the contractor a window, often 30 to 90 days, to inspect and offer to fix the problem. Skip this step in a state that requires it, and your case can be dismissed. If the statute of limitations runs during the delay, you may lose the right to refile.
The right-to-cure notice and the arbitration clause serve different purposes, and you may need to satisfy both: send the notice first, then initiate arbitration if Olshan’s response is inadequate. An attorney familiar with your state’s requirements should review your situation before you take any formal step.
State Consumer Protection Statutes Can Do More for You Than Contract Law
Every state has a consumer protection statute that prohibits unfair or deceptive business practices. These laws, sometimes called “little FTC Acts” or unfair and deceptive acts and practices (UDAP) statutes, often provide remedies that go beyond what a simple breach of contract claim would allow. Depending on your state, that can include statutory damages set by law regardless of actual loss, recovery of attorney’s fees, or enhanced damages.
You cannot sue under the federal FTC Act itself. It prohibits unfair and deceptive practices but does not give individual consumers the right to file a private lawsuit.6Office of the Law Revision Counsel. 15 USC 45 – Unfair Methods of Competition Unlawful; Prevention by Commission Only the Federal Trade Commission can enforce it. Your claim goes under your state’s statute instead.
Some state consumer protection laws allow courts to award treble damages, tripling your actual losses, when the company’s conduct was knowing or willful. Courts generally reserve that remedy for genuinely egregious behavior. You typically need clear evidence that the company acted intentionally, not just carelessly. Where treble damages are on the table, cases tend to settle.
What You Can Recover
What you recover depends on what went wrong and how well you document it. Foundation repair disputes typically involve several categories of loss.
- Repair costs. The most straightforward category. This is the cost of hiring another contractor to fix what Olshan did wrong or to finish what Olshan left unfinished. Get written estimates from at least two independent contractors.
- Diminished property value. If the faulty repair reduced your home’s market value even after corrective work, you can claim the difference. A real estate appraiser who understands foundation issues is the right expert.
- Consequential damages. Foundation problems cause secondary damage. Water infiltration from a failed repair can lead to mold, damaged flooring, cracked drywall, or ruined personal property. Those downstream losses are recoverable if you can connect them to Olshan’s work.
- Punitive damages. Available only in extreme cases where the company’s conduct was intentionally harmful or so reckless it showed conscious disregard for your rights. Most states require proof by clear and convincing evidence. Rare in construction disputes, but not unheard of when fraud is involved.
Documentation is not optional. Photograph damage before any corrective work begins. Keep every receipt. Save all communications with Olshan. Get independent expert assessments in writing. A licensed structural engineer’s report prepared for litigation typically runs $500 to $750 or more. That feels expensive until you realize that without one, proving causation is nearly impossible. This is where most weak claims fall apart: the homeowner knows the foundation is still moving but cannot prove Olshan’s work caused it.
Finding an Attorney Who Has Done This Before
Foundation repair disputes sit at the intersection of construction law, contract law, and consumer protection. You want an attorney who has handled construction defect cases specifically, not just general civil litigation. Ask how many construction cases they have taken through arbitration, because that is almost certainly where yours will end up. An attorney who has never navigated an AAA proceeding will be learning on your dime.
Most construction defect attorneys offer contingency fee arrangements, typically 33% to 40% of any recovery, sometimes increasing if the case goes to a hearing. Hourly arrangements exist, but the contingency model eliminates upfront cost and aligns the attorney’s incentive with yours. Initial consultations are generally free. Use them to assess whether the attorney can realistically estimate the value of your claim and the cost of pursuing it.
Before that first meeting, gather the original contract, all warranty documents, photographs of the damage, any inspection reports, and a written timeline of your communications with Olshan. The more organized the file, the faster an attorney can evaluate whether your case is worth pursuing and through which legal theories.