By Sam K. Abdulaziz, Abdulaziz, Grossbart & Rudman
Windscape LLC (“Windscape”), a developer, contracted with Western Products Co. (“Western”) wherein Western would install windows for an apartment complex. Construction of the apartments ended in 1991.
Windscape agreed to sell the apartments to Pine Terrace Apartments LP (“Pine Terrace”). In May 2003, escrow on the sale closed.
After the sale, Pine Terrace became aware of various defects, which caused damage to the apartments. It found that an absence of flashing in the windows caused the damage and that Windscape’s managing member, Eugene Andrade, knew of the defect. On May 17, 2004, Pine Terrace sued Windscape alleging that the defective work amounted to willful misconduct. Windscape cross-complained against Western and other subcontractors with an allegation of willful misconduct. The subcontractors argued that the ten-year statute of limitations in the Code of Civil Procedure barred the claim. The Superior Court agreed and dismissed the action against the subcontracts. Windscape appealed.
The Appellate Court reversed the case and remanded it for a different decision.
The Appellate Court held that Section 337.15 states, “no action for latent construction defects may be commenced more than ten years after substantial completion of the construction project.” However, this bar does not apply to actions arising out of willful misconduct. Since the complaint was based on willful misconduct, the exemption of the statute of limitations cannot be applied.
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Attorney Sam Abdulaziz of Abdulaziz, Grossbart & Rudman has been practicing construction law for over 30 years. He has written a book called “California Construction Law” which is updated annually. He represents numerous construction trade associations and contractors. He appears at Contractors State License Board meetings and has argued a number of cases before the appellate courts, including the California Supreme Court dealing with the "Pay-If-Paid Clause." Abdulaziz, Grossbart & Rudman provides this information as a service to its friends & clients. The documents are of a general nature and are intended to highlight areas of the subject matter and should not be used as a substitute for legal advice. It is intended to highlight the areas being discussed. This document does not create an attorney-client relationship, or protect any confidential information until a written agreement is signed. You should seek the aid and advice of a competent attorney, accountant and/or other professional instead of relying on the presentation and/or documents. Sam Abdulaziz can be reached at Abdulaziz, Grossbart & Rudman, P.O. Box 15458, North Hollywood, CA 91615-5458; (818) 760-2000, Facsimile (818) 760-3908; or by E-Mail at info@agrlaw.net .