California Court of Appeal Opens Doors for Construction Defect Claims Outside of the Right to Repair Act

Valentine S. Hoy and Timothy M. Hutter discuss a recent California Court of Appeal ruling that found SB800 (Civil Code sections 895 through 945.5, the "Right to Repair Act") is not the only remedy for construction defect claims even when those claims fall within the scope of the Act; therefore, the requirements of the Right to Repair Act do not apply to claims brought under common law. In Liberty Mutual Insurance Company v. Brookfield Crystal Cove, LLC, the defect claim was brought after the expiration of the applicable statute of limitations under the Right to Repair Act. The court did not deny that the claim fell within the auspices of the Right to Repair Act, but it concluded that the Act does not "establish exclusive remedies for claims for actual damages for construction defects". Although time-barred by SB800, the plaintiff's claim in Liberty Mutual is still valid under common law.