Homeowners Maintain Right to Bring Common Law Claims for Construction Defects Causing Property Damage

On Feb. 19,  in Burch v. Superior Court (Premier Homes LLC) B248830, the California Court of Appeal, Second Appellate District, held that the Right to Repair Act (Cal. Civ. Code § 895 et seq.) does not provide the exclusive remedy for a homeowner seeking damages for construction defects that resulted in property damage.  This ruling comes less than a year after the Court of Appeal – in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 1194, 1212 – reached the same conclusion.

In Burch, the plaintiff sued the developer and general contractor of a single-family residence in the Pacific Palisades area of Los Angeles, alleging that construction defects caused property damage.  Since the plaintiff asserted only common law claims, the defendants argued the California Right to Repair Act established the exclusive remedy for a violation of the construction standards set forth.

The Court of Appeal concluded that while the Right to Repair Act provides a remedy for particular residential construction defects that cause no property damage, the act does not limit or preclude common law claims for damages for construction defects that have caused property damage – affirming a finding it made in 2013, when it issued Liberty Mutual.

The Burch case is a reminder that homeowner plaintiffs are not restricted by the Right to Repair Act, and can assert claims for construction defects under the act and common law.  In addition, the Burch case seems to expand the potential liability exposure for general contractors (and possibly subcontractors) to a homeowner plaintiff, in the absence of privity, in instances when they construct a home knowing that it will be marketed to the general public.  The implications of Burch, however, are limited by the ability of a person to recover under the Right to Repair Act.

In turn, see the next blog post on KB Home Greater Los Angeles, Inc. v. The Superior Court of Los Angeles B246769, for an instance when that plaintiff (Allstate Insurance Co.) could have relied on Burch to pursue its claims for damages under a negligence theory despite violating the notice provision under the Right to Repair Act.

Image courtesy of Flickr by Clinton Steeds