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Powder-Post Beatles infested in wood of new home cabinets

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Sorry for the long post, but I can't summarize any more what is happening.

We just built a home in Texas and took ownership in December of 2000. Three months ago we noticed that there were small piles of fine sawdust in all our cabinets, on dishes and clothes. We had an exterminator come to find out what it was. He said that the wood with which the cabinets were built is infested with Powder-post beatles. In this short of time (Dec - Apr) they wouldn't have come in due to something else. These beetles have a 1-10 year incubation period and can spread throughout the house. The exterminator said that the only way to get rid of them is: (1) to tent and gas the house, or (2) replace all the cabinets. Our builder at first agreed to replace all the drawers since that is the only place we found them. He also said that if we find more, he will replace it as needed (as they come out). Two weeks later we found more in the shelves. It took him 1 month to replace the drawers and 1.5 months on the shelves. We now (in mid-May) have found more beetle holes in the Kitchen Island and found them infesting the new drawers (that were just replaced).

I spoke with the builder and he said that he would not replace anything else. Also, he said that the only solution is to have pest control come out and spray the infested areas.

I really don't want pesticides sprayed in the cabinets where we keep all our dishes, glasses, pots, pans, and dinnerware. Plus, as fast as the beetles moved into the new drawers, we may not catch them by spraying. In addition, the exterminator we talked with and research about the beetles have said that spraying won't kill them.

Our 2-10 home warantee doesn't include problems with infestations even if it was in the material when the home was built. I called to ask them.

Is the solution of spraying a valid solution offered by the builder, or do I have a right to have him replace all the cabinets since we have found the beatles in every cabinet in all the rooms of our house. This house is just 7 months old and I don't want to have problems later on.

Would small claims court be suitable for this complaint if the replacement cost is below $5,000 or should I hire an attorney?

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