Exhibit 5.2
[LETTERHEAD OF GIBSON, DUNN & CRUTCHER LLP]
Client: 39334-00088
May 1, 2012
D.R. Horton, Inc.
301 Commerce Street
Suite 500
Fort Worth, Texas 76102
| Re: | D.R. Horton, Inc. Offering of 4.750% Senior Notes due 2017 |
| | Registration Statement on Form S-3 (File No. 333-162123) |
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. 333-162123 (the “Registration Statement”), under the Securities Act of 1933, as amended (the “Securities Act”), the prospectus included therein, the prospectus supplement, dated April 25, 2012, filed with the Commission on April 26, 2012 pursuant to Rule 424(b) of the Securities Act (the “Prospectus Supplement”), and the offering by the Company pursuant thereto of $350,000,000 aggregate principal amount of the Company’s 4.750% Senior Notes due 2017 (the “Notes”).
The Notes will be issued under an Indenture, to be dated as of May 1, 2012 (the “Base Indenture”), between the Company and American Stock Transfer & Trust Company, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, to be dated as of May 1, 2012, relating to the Notes (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”) among the Company, the Guarantors and the 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 April 25, 2012 (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, certificates of officers of the Company and 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
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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, other than the Guarantors identified on Annex A as “Specified Guarantors” (each Guarantor so identified, 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 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, Colorado and Texas and the Delaware General Corporation Law and the Delaware Limited Liability Company Act. We are not admitted to practice in the State of Delaware; however, we are generally familiar with the Delaware General Corporation Law and the Delaware Limited Liability Company Act as currently in effect and have made such inquiries as we consider necessary to render these opinions. We have further assumed without independent investigation that the operating agreement of each Specified Guarantor that is a Delaware limited liability company constitutes a legal, valid and binding obligation of each party thereto, enforceable against it in accordance with its terms; to the extent our opinions are dependent on the interpretation of such agreement, they are based on the plain meaning of the provisions thereof in light of the Delaware Limited Liability Company Act. Without limitation, we do not express any opinion regarding any
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Delaware contract law. This opinion is limited to the effect of the current state of the laws of the States of New York, California, Colorado 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.
B. The opinions above are 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—Emerald, Ltd. | | Limited Partnership | | Texas | | Yes |
D.R. Horton—Schuler Homes, LLC | | Limited Liability Company | | Delaware | | Yes |
D.R. Horton—Texas, Ltd. | | Limited Partnership | | Texas | | 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.—Fresno | | 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 |
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| | | | | | |
D.R. Horton, Inc.—Huntsville | | 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.—Sacramento | | Corporation | | California | | Yes |
D.R. Horton, Inc.—Torrey | | Corporation | | Delaware | | Yes |
D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.) | | Corporation | | Delaware | | Yes |
D.R. Horton BAY, Inc. (f/k/a D.R. Horton OCI Inc., D.R. Horton Orange County Inc. and DRH Regrem IX, Inc.) | | Corporation | | Delaware | | Yes |
D.R. Horton Cruces Construction, Inc. (f/k/a DRH Regrem XI, Inc.) | | Corporation | | Delaware | | Yes |
D.R. Horton Los Angeles Holding Company, Inc. | | Corporation | | California | | Yes |
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| | | | | | |
D.R. Horton Management Company, Ltd. | | Limited Partnership | | Texas | | Yes |
D.R. Horton Materials, Inc. | | Corporation | | 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 VIII, LLC | | Limited Liability Company | | Delaware | | 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 |
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| | | | | | |
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 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 |
Melmort Co. | | Corporation | | Colorado | | Yes |
Melody Homes, Inc. | | Corporation | | 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 |
Schuler Mortgage, Inc. | | Corporation | | Delaware | | Yes |
Schuler Realty Hawaii, Inc. | | Corporation | | Hawaii | | No |
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| | | | | | |
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 Colorado, Inc. | | Corporation | | Colorado | | Yes |
SHLR of Nevada, Inc. | | Corporation | | Nevada | | No |
SHLR of Utah, Inc. | | Corporation | | Utah | | 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 Funding, Inc. | | Corporation | | California | | Yes |
Western Pacific Housing-Antigua, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing-Aviara, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing-Boardwalk, 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-Carmel, LLC | | Limited Liability Company | | Delaware | | Yes |
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| | | | | | |
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—Culver City, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing—Del Valle, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Lomas Verdes, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Lost Hills Park, 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—Oso, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing—Pacific Park II, LLC | | Limited Liability Company | | Delaware | | Yes |
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| | | | | | |
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—Poinsettia, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing—River Ridge, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Robinhood Ridge, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Santa Fe, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Scripps, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing—Scripps II, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Seacove, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing—Studio 528, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Terra Bay Duets, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Torrance, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Torrey Commercial, LLC | | Limited Liability Company | | Delaware | | Yes |
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| | | | | | |
Western Pacific Housing—Torrey Meadows, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Torrey Multi-Family, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Torrey Village Center, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Vineyard Terrace, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Windemere, LLC | | Limited Liability Company | | Delaware | | Yes |
Western Pacific Housing—Windflower, L.P. | | Limited Partnership | | California | | Yes |
Western Pacific Housing, Inc. | | Corporation | | Delaware | | Yes |
Western Pacific Housing, L.P.(f/k/a Western Pacific Housing Co., a California Limited Partnership) | | Limited Partnership | | California | | Yes |
Western Pacific Housing Management, Inc. | | Corporation | | California | | Yes |
WPH-Camino Ruiz, LLC | | Limited Liability Company | | Delaware | | Yes |
