Lessons from the Great Western Buildings Lawsuit

The Great Western Buildings lawsuit remains one of the most notable legal disputes in the U.S. construction industry, particularly within the prefab steel building sector. It highlights the risks that arise when manufacturers fail to deliver on quality promises and exposes the challenges property owners face when structural problems emerge. At the center of the case was Great Western Building Systems, a Colorado-based company that produced steel structures marketed for durability and long-term use.

Over time, a growing number of customers reported serious defects, including premature corrosion, structural weaknesses, and incomplete deliveries. These issues prompted thousands of building owners across the United States to pursue legal action, resulting in a major class action lawsuit. The case not only compensated affected customers but also established legal precedents, reinforced consumer protections, and forced manufacturers to rethink quality standards in the steel building industry.

Background: Great Western Building Systems

Great Western Building Systems was a prominent name in the metal building industry, producing pre-engineered structures for residential, agricultural, and commercial purposes. These buildings were widely marketed as affordable, long-lasting alternatives to traditional wood or brick structures. Customers purchased them for barns, storage facilities, workshops, and warehouses. Initially, the company enjoyed a solid reputation for offering cost-effective solutions with steel that was supposed to resist corrosion and last decades.

However, issues began to surface within a few years of installation. Customers noticed rusting, structural damage, and, in some cases, parts failing entirely. The problems were not isolated incidents; reports of corrosion and defective components became widespread. Many owners faced mounting repair costs, safety hazards, and frustration over unresponsive customer service.

The growing complaints eventually coalesced into a formal legal challenge, sparking a class action lawsuit that would span several years and attract national attention.

Causes of the Lawsuit

The primary issues driving the lawsuit centered on product defects, misrepresentation, and contractual breaches. Building owners alleged that Great Western had knowingly sold materials that were prone to failure and had misrepresented the quality and durability of their buildings.

Premature Corrosion and Structural Problems

Many buildings began showing signs of rust and corrosion within five to ten years, far earlier than promised. Steel panels, welds, and supporting frames deteriorated, compromising structural integrity. Some buildings experienced sagging roofs, warped walls, or holes in steel panels that required costly repairs.

Misrepresentation

Customers claimed that the company had intentionally overstated the durability of their steel buildings. Marketing materials, sales presentations, and contracts implied that the structures would last decades with minimal maintenance, which proved to be false in many cases.

Breach of Contract

Beyond material defects, customers alleged that Great Western frequently failed to meet delivery commitments or supply complete building components. Delays, missing parts, and poor communication were common complaints, contributing to project setbacks and financial losses.

Negligence

The lawsuit also alleged negligence in the company’s manufacturing and quality control processes. Plaintiffs argued that proper standards were not followed, resulting in substandard products that endangered the safety of building owners.

Collectively, these issues prompted thousands of owners to join the class action lawsuit, aiming to recover costs for repairs, replacements, and associated damages.

Legal Claims and Allegations

The lawsuit involved multiple legal claims:

Negligence and Breach of Warranty – Owners argued that the company failed to provide buildings fit for long-term use, breaching implied and explicit warranties.
Fraudulent Misrepresentation – Customers claimed they were misled about the quality and longevity of the steel and construction methods.
Breach of Contract – The company allegedly failed to deliver complete orders on time or meet contractual obligations.
Consumer Protection Violations – Plaintiffs argued that the company’s actions violated state consumer protection laws, which require honesty in product marketing and sales.

The combination of widespread defects and contractual issues made this one of the most comprehensive class action lawsuits in Colorado’s construction history.

The Lawsuit Process

The class action lawsuit was initiated in the mid-1990s. Plaintiffs presented evidence of defective steel, improper welding, and design flaws. Expert witnesses in engineering and materials science testified on the failures of the products.

The legal process included multiple hearings, motions, and discovery phases where both sides exchanged documents, records, and technical reports. Thousands of affected owners joined the case, strengthening the plaintiffs’ position.

In court, the jury examined whether Great Western had been negligent and whether its marketing and contractual practices misled customers. The evidence overwhelmingly supported the plaintiffs, demonstrating patterns of material failure, poor quality control, and misleading representations.

Court Decision and Settlement

In November 2000, a Colorado jury ruled in favor of the plaintiffs. The verdict concluded that Great Western Building Systems had been negligent in its manufacturing processes, used substandard materials, and failed to meet promised standards of quality. The ruling was later upheld by the Colorado Supreme Court, reinforcing the company’s accountability.

Rather than face prolonged litigation, Great Western opted for a settlement. The agreement, valued at around $50 million, provided for the repair or replacement of defective buildings and financial compensation to affected customers. While not all claims were fully covered, the settlement offered significant relief to many building owners.

The case became a landmark precedent, showing that manufacturers could be held responsible for product defects and that consumers had legal avenues for recourse even years after purchase.

Impact on the Steel Building Industry

The lawsuit had profound effects on the construction and metal building sectors:

1. Improved Quality Control

Manufacturers implemented stricter quality assurance measures to prevent premature corrosion, structural failures, and welding defects.

2. Contractual Transparency

Companies now provide clearer terms regarding warranties, delivery timelines, and repair responsibilities to avoid legal disputes.

3. Consumer Awareness

Property owners became more vigilant, checking warranties, materials quality, and customer reviews before purchasing steel buildings.

4. Legal Precedent

The case reinforced the legal principle that manufacturers are accountable for defective products and misrepresentations.

5. Industry Standards

The lawsuit encouraged higher standards for manufacturing, installation, and post-sale support, improving the overall reliability of prefab steel buildings.

Lessons Learned

The Great Western Buildings lawsuit offers key lessons for both manufacturers and consumers:

Manufacturers must uphold rigorous quality standards and deliver on promised specifications to maintain credibility.
Transparency in marketing and contracts protects both parties and reduces the risk of litigation.
Regular Maintenance is essential, but owners should not bear the cost of defects caused by poor manufacturing.
Documentation of complaints and defects can be critical in supporting legal claims.
Legal Recourse remains a powerful tool for consumers when widespread negligence or misrepresentation occurs.

Conclusion

The Great Western Buildings lawsuit is a defining example of how product defects, corporate negligence, and misrepresentation can escalate into major legal action. Thousands of building owners suffered from premature corrosion, structural damage, and incomplete deliveries, prompting a class action lawsuit against Great Western Building Systems. The Colorado jury’s verdict and the subsequent settlement not only provided financial relief but also set legal precedents in consumer protection, corporate accountability, and construction standards.

Beyond compensation, the case reshaped the steel building industry, prompting manufacturers to improve quality control, transparency, and contractual clarity. For consumers, it reinforced the importance of thorough research, documentation, and understanding warranty terms. The lawsuit remains a cautionary tale and a benchmark for legal and industry standards, emphasizing that durable, reliable construction products and honest business practices are non-negotiable for building long-term trust and safety.

FAQs

1. What was the Great Western Buildings lawsuit?
It was a class action lawsuit involving thousands of building owners who sued Great Western Building Systems over defective steel buildings, premature corrosion, and misrepresentation of quality.

2. Why did the lawsuit happen?
Customers experienced structural failures, rusting, incomplete deliveries, and breach of contract, prompting legal action against the manufacturer.

3. How did the court rule?
A Colorado jury found in favor of the plaintiffs, ruling the company negligent and liable for damages; the decision was upheld by the state Supreme Court.

4. What was the outcome of the case?
The company agreed to a $50 million settlement to repair or replace defective buildings and compensate affected customers.

5. How did the lawsuit impact the steel building industry?
It led to stricter quality control, better contracts, increased consumer awareness, and established legal precedent for manufacturer accountability.