Construction Defect Litigation In California

Harry Kaladjian – August 20, 2012

We all have seen the massive tract housing developments that have sprung up in California, as well as the recent conversions of certain high rise commercial buildings that have been transformed into mixed-use residential condominiums. Upon completion of these developments and after a homeowner takes possession and notices some problems, i.e., the slab cracks in the garage, water leaking through the ceiling, warped floors, improper framing, cracking stucco, etc…, what can the homeowner do?

First, the homeowner should be concerned about various statutes of limitation. For “patent” or observable defects, Code of Civil Procedure section 337.1 prescribes a four year limitations period to defects existing at time of substantial completion. For “latent” or hidden defects, Code of Civil Procedure section 337.15 provides a 10-year limitations period.

Once it has been established that defects exist, the homeowner must refer to the “Right to Repair Act” and “Calderon Procedures.” That is, the Right to Repair Act applies to new residential construction in which a contract for sale was signed by a seller on or after January 1, 2003. See Civil Code sections 895-945.5 (commonly referred to as SB 800 (2002)). The Calderon Procedures apply to common interest developments (i.e., condominiums). See Civil Code sections 1375-1375.1. By virtue of these legal mandates, a homeowner must follow pre-litigation procedures prior to filing a lawsuit.

After the defects are evaluated and contested, myriad causes of action may be pursued in order to redress the client’s grievance, including actions under contract, tort, and warranty claims. Negligence and strict liability claims are especially important for subsequent purchasers who had no dealings with the negligent contractor or developer. Moreover, it is well settled in California that strict liability principles apply in actions brought by homeowners’ associations with respect to common interest developments (i.e., condominiums, etc…).

Thus, it is highly critical for the homeowner or association to engage legal counsel when seeking a construction defect claim.

via Construction Defect Litigation In California « So-Cal-Lawyer.com Blog.

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