EX-5.2 5 d367203dex52.htm EX-5.2 EX-5.2

Exhibit 5.2

[Letterhead of Gibson, Dunn & Crutcher LLP]

December 5, 2017

D.R. Horton, Inc.

1341 Horton Circle

Arlington, TX 76011

 

Re: D.R. Horton, Inc. Public Offering of $400,000,000 Principal Amount of its 2.550% Senior Notes due 2020
     Registration Statement on Form S-3 (File No. 333-206226)

Ladies and Gentlemen:

We have acted as counsel to D.R. Horton, Inc., a Delaware corporation (the “Company”), and certain of its subsidiaries and affiliates listed on Annex A hereto (the “Guarantors”) in connection with the preparation and filing with the Securities and Exchange Commission (the “Commission”) of a Registration Statement on Form S-3, file no. 333-206226 (the “Registration Statement”), under the Securities Act of 1933, as amended (the “Securities Act”), the prospectus included therein, the prospectus supplement, dated November 29, 2017, filed with the Commission on November 29, 2017 pursuant to Rule 424(b) of the Securities Act (the “Prospectus Supplement”), and the offering by the Company pursuant thereto of $400,000,000 principal amount of the Company’s 2.550% Senior Notes due 2020 (the “Notes”).

The Notes will be issued pursuant to the Indenture, dated as of May 1, 2012 (the “Base Indenture”), between the Company and American Stock Transfer & Trust Company, as trustee (the “Original Trustee”), as modified in respect of the Notes by the Ninth Supplemental Indenture, to be dated as of December 5, 2017 (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”) among the Company, the Guarantors, Branch Banking and Trust Company, as series trustee, and the Original Trustee, and are guaranteed pursuant to the terms of the Indenture and the notation endorsed on the Notes by the Guarantors (the “Guarantees”). The Notes have been offered pursuant to an Underwriting Agreement dated as of November 29, 2017 (the “Underwriting Agreement”) among the Company, the Guarantors and the Underwriters named therein (the “Underwriters”).

In arriving at the opinions expressed below, we have examined originals, or copies certified or otherwise identified to our satisfaction as being true and complete copies of the originals, of the Base Indenture, the Supplemental Indenture, the Notes and the Guarantees (collectively, the “Note Documents”) and such other documents, corporate records,


D.R. Horton, Inc.

December 5, 2017

Page 2

 

certificates of officers of the Company, the Guarantors and of public officials and other instruments as we have deemed necessary or advisable to enable us to render these opinions. In our examination, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity and competency of all natural persons, the authenticity of all documents submitted to us as originals and the conformity to original documents of all documents submitted to us as copies. To the extent that our opinions may be dependent upon such matters, we have assumed, without independent investigation, that each of the Guarantors identified on Annex A that is not a Specified Guarantor is validly existing under the laws of its jurisdiction of incorporation, has all requisite corporate or other entity power to execute, deliver and perform its obligations under the Note Documents to which it is a party; that the execution and delivery of such documents by each such party and the performance of its obligations thereunder have been duly authorized by all necessary corporate or other action and do not violate any law, regulation, order, judgment or decree applicable to each such party; and that such documents have been duly executed and delivered by each such party. As to any facts material to these opinions, we have relied to the extent we deemed appropriate and without independent investigation upon statements and representations of officers and other representatives of the Company and the Guarantors and on certificates and representations obtained from public officials and others.

Based upon the foregoing, and subject to the assumptions, exceptions, qualifications and limitations set forth herein, we are of the opinion that the Notes, when authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Underwriters in accordance with the terms of the Underwriting Agreement, will be legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, and when the Notes with the Guarantees endorsed thereon have been duly authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Underwriters in accordance with the terms of the Underwriting Agreement, the Guarantees of the Notes will be legal, valid and binding obligations of the Guarantors obligated thereon, enforceable against such Guarantors in accordance with their respective terms.

The opinions expressed above are subject to the following additional exceptions, qualifications, limitations and assumptions:

A. We render no opinion herein as to matters involving the laws of any jurisdiction other than the State of New York and to the extent relevant for our opinions herein, the laws of the States of California and Texas and the Delaware General Corporation Law and the Delaware Limited Liability Company Act. This opinion is limited to the effect of the current state of the laws of the States of New York, California and Texas and the Delaware General Corporation Law and the Delaware Limited Liability Company Act and the facts as they currently exist. We assume no obligation to revise or supplement this opinion in the event of future changes in such laws or the interpretations thereof or such facts.


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December 5, 2017

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B. The opinions above are each subject to (i) the effect of any bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws affecting the rights and remedies of creditors generally, including without limitation the effect of statutory or other laws regarding fraudulent transfers or preferential transfers, (ii) general principles of equity, including without limitation concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance, injunctive relief or other equitable remedies regardless of whether enforceability is considered in a proceeding in equity or at law and (iii) the provisions of: (1) Article Eight of the Certificate of Incorporation of CH Investments of Texas, Inc.; (2) Article Eight of the Certificate of Incorporation of CHTEX of Texas, Inc.; (3) Paragraph Eight of the Certificate of Incorporation of D.R. Horton, Inc. -Chicago (excluding the first three sentences thereof); and (4) Article Ten of the Certificate of Incorporation of Western Pacific Housing, Inc.

C. We express no opinion regarding the effectiveness of (i) any waiver of stay, extension or usury laws or of unknown future rights, (ii) provisions relating to indemnification, exculpation or contribution, to the extent such provisions may be held unenforceable as contrary to public policy or federal or state securities laws, or (iii) any purported fraudulent transfer “savings” clause.

We consent to the filing of this opinion as an exhibit to the Registration Statement, and we further consent to the use of our name under the caption “Legal Matters” in the Registration Statement and the Prospectus Supplement. In giving these consents, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

Very truly yours,

/s/ Gibson, Dunn & Crutcher LLP


ANNEX A

Guarantors

 

Name   Form of Entity   Jurisdiction of
Formation
  Specified
Guarantor
C. Richard Dobson Builders, Inc.   Corporation   Virginia   No
CH Investments of Texas, Inc.   Corporation   Delaware   Yes
CHI Construction Company   Corporation   Arizona   No
CHTEX of Texas, Inc.   Corporation   Delaware   Yes
Continental Homes, Inc.   Corporation                   Delaware                 Yes                
Continental Homes of Texas, L.P.   Limited Partnership   Texas   Yes
Continental Residential, Inc.   Corporation   California   Yes
D.R. Horton – Crown, LLC   Limited Liability
Company
  Delaware   Yes
D.R. Horton – Emerald, Ltd.   Limited Partnership   Texas   Yes
D.R. Horton – Georgia, LLC (f/k/a DRH Regrem XXX, LLC)   Limited Liability
Company
  Delaware   Yes
D.R. Horton – Regent, LLC (f/k/a DRH Regrem XXVI, LLC)   Limited Liability
Company
  Delaware   Yes
D.R. Horton – Schuler Homes, LLC   Limited Liability
Company
  Delaware   Yes
D.R. Horton – Texas, Ltd.   Limited Partnership   Texas   Yes


D.R. Horton – WPH, LLC (f/x/a (i) D.R. Horton – Atlanta, LLC and (ii) DRH Regrem XXIX, LLC)   Limited Liability
Company
  Delaware                 Yes                
D.R. Horton, Inc. – Birmingham   Corporation                   Alabama   No
D.R. Horton, Inc. – Chicago   Corporation   Delaware   Yes
D.R. Horton, Inc. – Dietz-Crane   Corporation   Delaware   Yes
D.R. Horton, Inc. – Greensboro   Corporation   Delaware   Yes
D.R. Horton, Inc. – Gulf Coast (f/k/a DRH Regrem V, Inc.)   Corporation   Delaware   Yes
D.R. Horton, Inc. – Huntsville (f/k/a DRH Regrem XIII, Inc.)   Corporation   Delaware   Yes
D.R. Horton, Inc. – Jacksonville   Corporation   Delaware   Yes
D.R. Horton, Inc. – Louisville   Corporation   Delaware   Yes
D.R. Horton, Inc. – Minnesota   Corporation   Delaware   Yes
D.R. Horton, Inc. – New Jersey   Corporation   Delaware   Yes
D.R. Horton, Inc. – Portland   Corporation   Delaware   Yes
D.R. Horton, Inc. – Torrey   Corporation   Delaware   Yes


D.R. Horton BAY, Inc. (f/k/a (i) D.R. Horton OCI Inc., (ii) D.R. Horton Orange County Inc. and (iii) DRH Regrem IX, Inc.)   Corporation                   Delaware                 Yes                
D.R. Horton CA2, Inc. (f/k/a D.R. Horton, Inc. – Sacramento)   Corporation   California   Yes
D.R. Horton CA3, Inc. (f/k/a (i) DRH Regrem IV, Inc. and (ii) D.R. Horton, Inc. – Fresno)   Corporation   Delaware   Yes
D.R. Horton CA4, LLC (f/k/a DRH Regrem XXXI, LLC)   Limited Liability
Company
  Delaware   Yes
D.R. Horton Cruces Construction, Inc. (f/k/a DRH Regrem XI, Inc.)   Corporation   Delaware   Yes
D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.)   Corporation   Delaware   Yes
D.R. Horton Los Angeles Holding Company, Inc.   Corporation   California   Yes
D.R. Horton Management Company, Ltd.   Limited Partnership   Texas   Yes
D.R. Horton Materials, Inc.   Corporation   Delaware   Yes
D.R. Horton Serenity Construction, LLC (f/k/a/ DRH Regrem VIII, LLC)   Limited Liability
Company
  Delaware   Yes
D.R. Horton VEN Inc. (f/k/a D.R. LAV Inc. and D.R. Horton San Diego Holding Company, Inc.)   Corporation   California   Yes


DRH Cambridge Homes, Inc.   Corporation                   California   Yes
DRH Cambridge Homes, LLC   Limited Liability
Company
  Delaware                 Yes                
DRH Construction, Inc.   Corporation   Delaware   Yes
DRH Regrem VII, LP   Limited Partnership   Texas   Yes
DRH Regrem XII, LP   Limited Partnership   Texas   Yes
DRH Regrem XIV, Inc.   Corporation   Delaware   Yes
DRH Regrem XV, Inc.   Corporation   Delaware   Yes
DRH Regrem XVI, Inc.   Corporation   Delaware   Yes
DRH Regrem XVII, Inc.   Corporation   Delaware   Yes
DRH Regrem XVIII, Inc.   Corporation   Delaware   Yes
DRH Regrem XIX, Inc.   Corporation   Delaware   Yes
DRH Regrem XX, Inc.   Corporation   Delaware   Yes
DRH Regrem XXI, Inc.   Corporation   Delaware   Yes
DRH Regrem XXII, Inc.   Corporation   Delaware   Yes
DRH Regrem XXIII, Inc.   Corporation   Delaware   Yes
DRH Regrem XXIV, Inc.   Corporation   Delaware   Yes


DRH Regrem XXV, Inc. (f/k/a D.R. Horton VEN, Inc. and D.R. Horton Inc. – Los Angeles)   Corporation                   Delaware                 Yes                
DRH Regrem XXXII, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXIII, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXIV, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXV, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXVI, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXVII, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXVIII, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XXXIX, LLC   Limited Liability
Company
  Delaware   Yes
DRH Regrem XL, LLC   Limited Liability
Company
  Delaware   Yes
DRH Southwest Construction, Inc.   Corporation   California   Yes
DRH Tucson Construction, Inc.   Corporation   Delaware   Yes
HPH Homebuilders 2000 L.P.   Limited Partnership   California   Yes
KDB Homes, Inc.   Corporation   Delaware   Yes
Meadows I, Ltd.   Corporation   Delaware   Yes
Meadows II, Ltd.   Corporation   Delaware   Yes
Meadows VIII, Ltd.   Corporation   Delaware   Yes
Meadows IX, Inc.   Corporation   New Jersey   No
Meadows X, Inc.   Corporation   New Jersey   No
Melody Homes, Inc.   Corporation   Delaware   Yes


Pacific Ridge – DRH, LLC (f/k/a (i) D.R. Horton – Seattle North, LLC and (ii) DRH Regrem XXVIII, LLC)   Limited Liability
Company
  Delaware   Yes
Schuler Homes of Arizona, LLC   Limited Liability
Company
  Delaware                 Yes                
Schuler Homes of California, Inc.   Corporation                   California   Yes
Schuler Homes of Oregon, Inc.   Corporation   Oregon   No
Schuler Homes of Washington, Inc.   Corporation   Washington   No
SGS Communities at Grande Quay, L.L.C.   Limited Liability
Company
  New Jersey   No
SHA Construction LLC   Limited Liability
Company
  Delaware   Yes
SHLR of California, Inc.   Corporation   California   Yes
SHLR of Nevada, Inc.   Corporation   Nevada   No
SHLR of Washington, Inc.   Corporation   Washington   No
SRHI LLC   Limited Liability
Company
  Delaware   Yes
SSHI LLC   Limited Liability
Company
  Delaware   Yes
Vertical Construction Corporation   Corporation   Delaware   Yes
Western Pacific Housing-Antigua, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Broadway, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Canyon Park, LLC   Limited Liability
Company
  Delaware   Yes


Western Pacific Housing-Carrillo, LLC   Limited Liability
Company
  Delaware                 Yes                
Western Pacific Housing-Communications Hill, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Copper Canyon, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Creekside, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Lomas Verdes, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-McGonigle Canyon, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing – Mountaingate, L.P.   Limited Partnership       California   Yes
Western Pacific Housing-Norco Estates, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Pacific Park II, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Park Avenue East, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Park Avenue West, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Playa Vista, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-River Ridge, LLC   Limited Liability
Company
  Delaware   Yes


Western Pacific Housing-Terra Bay Duets, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Torrey Meadows, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Torrey Village Center, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing-Windemere, LLC   Limited Liability
Company
  Delaware   Yes
Western Pacific Housing, Inc.   Corporation                   Delaware                 Yes                
Western Pacific Housing Management, Inc.   Corporation   California   Yes
WPH-Camino Ruiz, LLC   Limited Liability
Company
  Delaware   Yes