Builder Liability — Governing Code

“Civ. Code Sections 895-945.5 (commonly known as the Right to Repair Act; hereafter the Act) ... sets forth detailed statewide standards that the components of a dwelling must satisfy. It also establishes a prelitigation dispute resolution process that affords builders notice of alleged construction defects and the opportunity to cure such defects, while granting homeowners the right to sue for deficiencies even in the absence of property damage or personal injury.” McMillin Albany LLC v. Superior Court (2018) 4 Cal.5th 241, 247.

“Section 896, which codifies a lengthy set of standards for the construction of individual dwellings, begins with a preamble describing the intended effect of those standards. As relevant here, the preamble says: ‘In any action seeking recovery of damages arising out of, or related to deficiencies in, the residential construction, design, specifications, surveying, planning, supervision, testing, or observation of construction, a builder... shall, except as specifically set forth in this title, be liable for, and the claimant's claims or causes of action shall be limited to violation of, the following standards, except as specifically set forth in this title. This title applies to original construction intended to be sold as an individual dwelling unit. As to condominium conversions, this title does not apply to or does not supersede any other statutory or common law.’” (McMillin Albany LLC v. Superior Court (2018) 4 Cal.5th 241 at 250 citing Sec. 896.)

Actionable Offenses Under the Act

Actionable defects under the Act include: · Water intrusion (Civ. Code § 896(a)) · Structural issues (foundations, etc.) (Civ. Code § 896(b)) · Soils-related issues (Civ. Code § 896(c)) · Fire protection issues (Civ. Code § 896(d)) · Plumbing and sewer issues (Civ. Code § 896(e)) · Electrical system issues (Civ. Code § 896(f)) · Other areas of construction (Civ. Code § 896(g) (Included are such things as stucco, hardscape, siding, HVAC equipment, noise transmissions, irrigation, posts and fences, paint and stains, roofing materials, landscaping, tile, dryer ducts, etc.)

Statute of Limitations

Civil Code section 941(a) holds that no action seeking to recover damages covered by the Act may be brought more than ten years after substantial completion of an improvement, which is no later than the date of recordation of a valid notice of completion. (Civ. Code Sec. 941(a).)

Economic Losses and the Act

“As with economic losses, the Act expressly includes property damages resulting from construction defects among the categories of damages recoverable under the Act. (McMillin Albany, 4 Cal.5th at 252 citing Sec. 944 [a homeowner may recover "the reasonable cost of repairing and rectifying any damages resulting from the failure of the home to meet the standards"]; see Sec. 896 [the Act applies to "recovery of damages arising out of, or related to" construction defects].) “This places claims involving property damages within the purview of section 943(a), which makes a claim under the Act the exclusive way to recover such damages. And unlike personal injury claims, negligence and strict liability claims for property damages are not among the few types of claims expressly excepted from section 943's exclusivity.” Id. at 253 citing Sec. 943 (a); see § 931 [noting claims for personal injury, but not property damage, fall outside the Act's coverage].)