Construction Defect Litigation

California Construction Defect Litigation Attorneys

A home is generally the single most valuable financial investment and one of the most important emotional expenditures. To most of us, it is more than wood and stucco; it is the place where we live, rest and raise our families. Unfortunately, hundreds of thousands of unsuspecting homeowners find out after they move in their new homes suffer from some type of construction defect that will cost thousands of dollars to repair, depreciate the value of their home, or force them to leave their home.

Construction defects cover a broad spectrum from minor problems like popped nails, leaky faucets and peeling paint to situations when a house must be rebuilt. Some cases involve leaky pipes and leaky windows that have led to toxic-mold contamination. Other problems include faulty design, code violations, cracked foundations, substandard workmanship, and unsafe structures.

Whatever construction defect you are dealing with, the lawyers at Samuel Spital and Associates can help. Contact our office in San Diego, California, to schedule a consultation.

The Surge in Construction Defects

The number of construction-defect cases in California has surged in recent years because homes have been constructed in record numbers to meet the high demand for housing.

The combination of these factors results in some homes that are built with serious defects:

  • Many general contractors are inexperienced and others mass produce thousands of houses.
  • The home construction industry is intensely competitive.
  • Many builders respond to the competition with low bids for contracts, then cut corners, and frequently employ unskilled or overworked subcontractors and poorly supervise subcontracted work.
  • Government inspection departments do not have the funding to adequately inspect homes and often approve below-par construction simply because it meets the minimal standards of the building code.

Types of Construction Defects

Construction defects usually include any deficiency in the design, planning, supervision, inspection, and/or construction of any new home or building. It involves the failure to construct the building in a reasonably workmanlike manner and/or the structure fails to perform in the manner that is reasonably intended by the buyer.

  • Some of the most common and high-cost construction defects include:
  • Structural integrity - concrete, masonry & division, carpentry, unstable foundations
  • Expansive soils
  • Mechanical
  • Electrical
  • Water intrusion (often resulting in toxic mold)
  • Thermal and moisture protection
  • Doors, windows and glass
  • Finishes

Generally, courts categorize construction defects in one of four categories:

1. Design Deficiencies: Design professionals, such as architects and engineers, do not always work as specified, which can result in a defect. Typical design deficiencies relate to building outside of the specified code. For example, roofs defects can result in water penetration, intrusion, poor drainage or inadequate structural support.

2. Material Deficiencies: The use of inferior building materials can cause significant problems, such as windows that leak or fail to perform and function adequately, even when properly installed. Window leaks can result from many things including, rough framing not being flush with outside at openings, improperly flashed windows, improperly applied building paper, window frame racked during storage/moving, lack of sheet metal drip edge above window header, etc. Common manufacturer problems with building materials can include deteriorating flashing, building paper, waterproofing membranes, asphalt roofing shingles, particle board, inferior drywall and other wall products used in wet and/or damp areas, such as bathrooms and laundry rooms.

3. Construction Deficiencies: Poor quality workmanship can result in a long list of defects. A typical example is water infiltration through some portion of the building structure, which may create an environment for the growth of mold. Other problems include cracks in foundations and/or walls, dry rotting of wood, electrical and mechanical problems, plumbing leaks, and/or pest infestation.

4. Subsurface Deficiencies: Expansive soil conditions are typical in California, as well as other parts of the country. Many houses are built on compacted earth, hills or other areas where it is difficult to provide a stable foundation. A lack of a solid foundation may result in cracked foundations and/or floor slabs and other damage to the building. If subsurface conditions are not properly compacted and prepared for adequate drainage, it is likely the property will experience problems such as improperly settling to the ground (subsidence), the structure moving or shifting, flooding and in many cases more severe problems, such as landslides.

The Typical Construction Defect Case

Construction defect cases are based on the contract between the homeowner and developer and the contract between the contractor and subcontractors, including suppliers, architects and engineers, involved in building the home. The goal is to require the party who is responsible for the defect to remedy the situation.

The complaint against these individuals and entities typically alleges:

  • Negligence: The law imposes the obligation upon the developer, general contractor and subcontractor to exercise the reasonable degree of care, skill and knowledge that is ordinarily employed by such building professionals. The duty of care is extended to all who may "foreseeable be injured by the construction defect," including subsequent purchasers. Developers and general contractors are responsible for the negligence of their subcontractor.
  • Breach of Contract: Homeowners can sue the builder and/or the developer, under theories based upon privacy of contract, for breach of any obligation set forth in the purchase and sale documentation, and/or the escrow instructions. Typically, this is something that goes beyond a failure of the builder to build the project in accordance with the plans and specifications. When such claims are made, courts often invoke the doctrine of substantial performance, which typically requires the builder to pay the contract price with a deduction for the reduced market value of the home or condominium unit caused by the failure of the builder to strictly comply with the plans and specifications.
  • Breach of Warranty: Similar to breach of contract theories, the purchase documentation between the developer and/or builder and the homeowner often sets forth warranties regarding the condition of the property. If there is an issue as to breach of an express warranty, the principles of contract apply.

California courts have held builders and sellers of new construction to what is "implied," that the completed structure was designed and constructed in a reasonable workmanlike manner. A builder and/or vendor is subject to the theory that a house was built for sale to the public to be used for a specific purpose. Privacy of contract is not always required under this particular theory of liability.

In some cases, a homebuyer may "waive" this type of warranty and/or a builder may disclaim implied warranties. If disclaimers are involved, they are strictly construed against the seller, builder and/ or developer. Typically, waivers are difficult to enforce.

  • Strict Liability Claims: In California, the implied warranty of habitability imposes strict liability on the general contractor. The theory of "strict liability" against a general contractor evolved from products liability law.

    In a strict liability case the homeowner does not have to prove the general contractor and/or developer was negligent in the construction of the house. They do have to prove the following: the builder and/or developer was involved in the mass production of housing, a defect in the house exists, damages were proximately caused by the defect, and the defendant caused or created the defect.
  • Fraud and Negligent Misrepresentation: Fraud is alleged on the grounds that the developer and/or builder intentionally misrepresented the quality of construction in false statements, brochures or other forms of advertisements. It must be shown the developer and/or builder did not have the intent to follow the design plans and specifications as promised.
  • Negligent misrepresentation: This theory is based upon proof the builder and/or developer asserted something as factual, but did not have a reasonable basis for believing the information to be true.

Limits on Potential Claims

California imposes time limits on construction defect claims by statutes of limitations. Under such a statute, the limitation period may expire before the owner's cause of action has arisen. Conversely, a statute of limitation may prevent a suit after a fixed period of time following occurrence or discovery of an injury. These statues are complex and it is critical you seek the advice of an experienced attorney if you believe the damages to your home are the result of a construction defect before you lose your right to seek a remedy from the responsible parties.

In California, the time limits begin to run when the defect is discovered or should have been discovered by a reasonable person:

  • If the defect is obvious (patent), or apparent based on reasonable inspection, the action against a builder and/or developer must begin within the time period specified in the statute of limitations.
  • If the defect is concealed (latent), or not readily apparent by reasonable inspection, any action to recover damages generally must be within ten (10) years after improvements are substantially completed.

Construction defect litigation is complex. It may involve several individuals and entities, including insurance companies for each of these parties, and involve many legal theories. Because there are complex time limits on when a claim may be brought, if you believe your home suffers from a defect caused by the builder or another party, protect your rights and speak with an experienced construction defect lawyer as soon as possible.

Contact Us

If you are involved in a construction defect case, or want more information regarding filing a construction defect claim, contact Link to Contact Us the San Diego law office of Samuel Spital and Associates. We are zealous advocates for you.

Samuel Spital & Associates
8880 Rio San Diego Drive
Suite 800
San Diego, CA 92108-1642
Telephone: 619-583-0350
Fax: 619-583-1850
Call 7 days a week at any hour or send an e-mail now.