Buying a new home in California is a significant investment, but what happens when your dream home turns into a nightmare due to a construction defect?

Understanding construction defect laws in California is crucial for homeowners in these situations, but the complexity of these laws often leaves individuals vulnerable to exploitation. At Kimura London & White, LLP, our attorneys have extensive experience with these regulations that helps ensure our clients' rights as homeowners are fully protected.

California's New Home Warranty law was established to provide homeowners with a robust framework of protections. However, the enactment of SB800, also known as the "Right to Repair Act," introduced a detailed pre-litigation process that homeowners must adhere to before pursuing legal action.

This law outlines specific timelines and procedures for notifying builders of defects, as well as opportunities for builders to inspect and repair the issues. While SB800 was designed to encourage resolution without litigation, the strict requirements can be challenging to manage without skilled legal guidance.

Moreover, SB800 imposes statutes of limitation that vary depending on the type of defect. For example, claims involving structural issues often have a longer time frame than those related to aesthetic problems or mechanical systems. Builders and other responsible parties may attempt to use these nuances to their advantage, delaying or denying rightful claims by exploiting procedural missteps or the complexity of the law.

If you suspect a defect in your home, it's critical to act quickly and seek legal advice. The timelines set by SB800 are unforgiving, and missing even a single step in the process can jeopardize your claim. Contact our team today to discuss your case. We'll provide a clear roadmap for addressing your concerns and achieving a resolution that protects your home and your investment.

Table of Contents:

• Understanding Construction Defect Claims in California
  • Types of Construction Defects
  • Navigating the Pre-Litigation Process for Filing Construction Defect Claims
  • California Construction Defect Claims: Statutes of Limitations
  • Who Is Responsible?
  • What Remedies Can You Seek in a Defect Lawsuit?
  • Standards of Legal Expectations for New Construction
• Conclusion

Construction Defect Claims in California: Overview

A construction defect is a flaw in the design, workmanship, or materials used in a construction project. This flaw means the project doesn't meet the standards set by California's building standards, the construction contract, or the Civil Code. These flaws can lead to serious problems, such as water damage, structural issues impacting load bearing walls and exterior walls, and even health hazards.

A construction defect claim is a legal action taken by a property owner to seek compensation or other remedies for issues in the construction of their property.

These claims are typically filed against parties involved in the design, construction, or development of the property—such as builders, contractors, subcontractors, architects, or material suppliers—who may be responsible for the defect.

The purpose of a construction defect claim is to hold the responsible parties accountable and recover damages, which may include:

• Repair Costs: The expense of fixing the defect.
• Diminished Property Value: Compensation for the reduced market value of the property caused by the defect.
• Relocation Costs: Costs incurred if the defect requires the owner to temporarily move out.
• Legal Fees: In some cases, the recovery of attorney's fees and court costs.
• Other Damages: Additional expenses such as mold remediation or increased utility bills caused by the defect.

Types of Construction Defects

Construction defects can range from minor cosmetic issues to major structural problems impacting retaining walls. These problems are grouped into a few main categories affecting work performed by contractors. Defects including these may impact property value or lead to property damage.

• Construction Deficiencies: Issues due to substandard workmanship practices or problems meeting specific design criteria.
• Design Deficiencies: Problems stemming from errors at the blueprint level affecting elements like load resistance and vertical displacement.
• Material Deficiencies: Incorrect usage of substandard or failure-prone materials in the building process, potentially impacting load bearing elements.
• Subsurface Deficiencies: Foundation-level faults, including inadequate soil compacting or poor drainage. These can lead to significant long-term issues like cracking and instability.

Navigating the Pre-Litigation Process for Filing Construction Defect Claims

Before filing a construction defect lawsuit in California, you must generally follow a pre-litigation process. This process includes notifying the builder about the defects and giving them a chance to make repairs, a key part of filing a claim or lawsuit.

California SB 800, the Right to Repair Act, outlines this pre-litigation process with its specific prelitigation procedures. The law is complex, involving legal terms like equitable estoppel and equitable tolling. If you are unsure whether it applies to your situation, seek legal advice. A qualified claims attorney can offer guidance for navigating this process in California. 

Here's a general outline of how the pre-litigation procedure works:

1. Notify the builder in writing, clearly describing the defects.
2. Allow the builder to inspect the property and verify the defects.
3. The builder proposes repair options or other remedies.
4. You decide whether to accept the builder's proposal.

California Construction Defect Claims: Statutes of Limitations

Many homeowners ask about the deadlines for filing claims. It's important to understand the statutes of limitations that apply to construction defect cases and how they may impact your ability to pursue a claim.

The deadlines vary depending on the specific defect and whether you are dealing with contract claims or liability claims based on strict liability, for example.

Deadlines can range from one to ten years for the general warranty under California's New Home Warranty Program (California's New Home Warranty site). Claims related to fraud have their own statute of limitations. Consult our legal team immediately to help ensure your potential claims aren't barred by expiration of the applicable limitations period, whether dealing with a written contract or express warranties.

Who Is Responsible?

Determining liability in construction defect cases involves assessing multiple parties. These can include contractors, subcontractors, material suppliers, architects, and engineers. Assigning fault requires thorough investigation into the construction contract, relevant civil code sections, and local laws, as the California Code of Civil Procedure governs defect litigation.

Claims often involve multiple parties, each potentially responsible for different aspects of the defect, making the process more challenging to navigate. A defect case can involve concepts of strict liability, particularly in residential construction, according to California courts.

Ourattorneys can help you better-understand the situation you're facing, and let you know whether or not they think you have a strong case.

What Remedies Can You Seek in a Defect Lawsuit?

If you pursue legal action in California, you can seek various remedies. These include the cost of repairs, diminished property value, and temporary housing costs.

You may also seek reimbursement for legal expenses and relocation expenses. Each case is unique, so professional advice is recommended. In some cases, property owners have recovered compensation for emotional distress.

Standards of Legal Expectations for New Construction

The standards of legal expectations for new construction establish the obligations builders, contractors, and other parties must meet to ensure safe, functional, and durable structures. These expectations are codified in laws, building codes, and industry standards in California.

Below are the key standards of legal expectations:

1. Compliance with Building Codes and Regulations

Builders are required to adhere to local, state, and federal building codes, which establish minimum standards for safety, materials, and construction practices.

Non-compliance with these codes often serves as strong evidence of a construction defect.

2. Conformance with Plans and Specifications

The construction must align with approved architectural and engineering plans and meet the specifications outlined in the construction contract.

Deviations without proper approvals or justification may be considered evidence of a defect.

3. Workmanship Standards

The quality of work must meet the standard practices of the construction industry. Poor workmanship, such as uneven flooring or improperly installed systems, can constitute a defect if it fails to meet these standards.

4. Material Standards

Builders must use materials that meet or exceed the specifications agreed upon in the contract and that are appropriate for the intended use.

The use of substandard, defective, or unsuitable materials can lead to liability for defects.

5. Structural Integrity

New construction is expected to be free from structural defects that compromise the safety or stability of the building, such as foundation cracks or roof collapses.

6. Durability and Performance

Construction must be reasonably durable and capable of performing as intended for a reasonable period under normal use.

For example, roofing materials should not leak prematurely, and plumbing systems should function without persistent issues.

7. Adherence to Warranties

Builders are often required to honor express warranties provided in the construction agreement, as well as implied warranties.

These warranties ensure the home is safe, livable, and constructed to an acceptable standard.

8. Right to Repair

Under California's Right to Repair Act (SB800), new residential construction must meet certain functionality and safety standards, including protections against:

• Water intrusion from roofs, windows, or doors.
• Structural failures in foundations, walls, or load-bearing components.
• Mechanical and electrical system malfunctions.
• Defects in exterior systems like siding or stucco.

9. Duty of Care

Builders and contractors owe a duty of care to homeowners to avoid negligence in the construction process. Breaches of this duty, such as failing to properly inspect or supervise construction, can result in liability for defects.

Conclusion

Understanding your rights, the types of defects, and available resources can help safeguard your investment. Be proactive by having licensed professionals inspect for problems and by saving all documentation. Detailed records are essential for claims.

Those who are dealing with construction defects and would like an attorney to pursue damages can give us a call or fill out our form to receive help today. Our experienced team is standing by to assist.