Hartley v. Ballou, 286 N.C. 51, 209 S.E.2d 776 (1974)
The plaintiff purchased a house from the defendants which one of the defendants had built. Shortly after the purchase, the plaintiff experienced flooding in the basement of the house. The plaintiff sued the defendants for breach of express and implied warranties. Following trial, the trial court entered a judgment in favor of the plaintiff against the builder defendant. On appeal, the North Carolina Supreme Court recognized an implied warranty of habitability and workmanlike construction by the builder-vendor of a residence to the initial vendee. The Supreme Court ultimately reduced the damages awarded since it found that they exceeded the builder’s liability under the implied warranty.