from Brad Diede, Executive Director, California Professional Association of Specialty Contractors (CALPASC)
This is a message to current/former CALPASC members and friends of the industry. There is an egregious appellate court ruling, Liberty Mutual v. Brookfield, that recently came down and it is bad for our industry! The ruling allows plaintiff attorneys in construction defect cases to file everything on the homebuilder, including strict liability, with no right to repair. CALPASC will fight against it! CALPASC will be issuing a letter asking the appellate court in Liberty Mutual v. Brookfield, to review and modify their ruling. Attorney John Boze will be preparing the letter, which must be filed by Thursday, September 12, 2013.
We completely disagree with the ruling by the court that all other remedies are available to homeowners, along with SB 800, for construction defect claims. SB 800 is clearly the exclusive remedy.
We understand that the court wanted to provide equity to Liberty Mutual, who was making a subrogation claim on behalf of the homeowner. Unfortunately, Brookfield, and the California Building Industry (CBIA) in filing an amicus brief, tried to state that plumbing system leaks were limited to four years after close of escrow. They based their argument on SB 800, CA Civil Code section 896(e) With respect to plumbing and sewer issues: "Plumbing and sewer systems shall be installed to operate properly and shall not materially impair the use of the structure by its inhabitants. However, no action may be brought for a violation of this subdivision more than four years after close of escrow". This is in contradiction of SB 800, CA Civil Code section 896 (a) (14): "The lines and components of the plumbing system, sewer system, and utility systems shall not leak."
While the leak came from the fire sprinkler system, Brookfield argued that the fire sprinkler system was part of the plumbing system. The court needed to find equity to Liberty Mutual, on behalf of their homeowner. They should have utilized the clear language of SB 800 to do so. So as stated, this ruling allows plaintiff attorneys in construction defect cases to file everything on the homebuilder, including strict liability, with no right to repair. A very unfortunate outcome.
You can find all the relative information on the ruling at: Liberty Mutual v. Brookfield. And please contact CALPASC Director of Risk Management, Bruce Wick, for further information. 909-793-9932, or bwick@calpasc.org.
Lastly, please reply to this email if you can pledge to help defray the legal expenses to fight this matter. We need an initial $3000. What we do not spend now, we will save for later, and stay tuned for more information. Based on the appellate court's response, we may need to seek additional funding to continue the appeal process. PLEASE HELP IF YOU CAN! ($200, $100, $50? Any amount will help.) You can use check or credit card, and I will send you the form if you decide you can help.
Thanks for your support of the trades!
Brad Diede, Executive Director
California Professional Association of Specialty Contractors (CALPASC)
3636 American River Drive, 2nd Floor
Sacramento, CA 95864
Ph: 916-973-2925
Fx: 916-480-7404