{"id":892724,"date":"2017-08-10T13:59:56","date_gmt":"2017-08-10T19:59:56","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=892724"},"modified":"2017-08-10T13:59:56","modified_gmt":"2017-08-10T19:59:56","slug":"supreme-court-showdown-right-repair-act-exclusive-remedy-homeowners","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/supreme-court-showdown-right-repair-act-exclusive-remedy-homeowners\/","title":{"rendered":"In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for Homeowners"},"content":{"rendered":"<p>Garret Murai | <a href=\"https:\/\/calconstructionlawblog.com\/2017\/08\/09\/in-supreme-court-showdown-california-appeals-courts-choose-sides-regarding-whether-right-to-repair-act-is-exclusive-remedy-for-homeowners\/\" target=\"_blank\">California Construction Law Blog<\/a> | August 9, 2017<\/p>\n<p>Earlier, we wrote about an appellate court split concerning the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/californias-right-repair-statue-really-exclusive-remedy-construction-defect-ligitation\/\" target=\"_blank\">Right to Repair Act<\/a> (Civil Code sections 895\u00a0<em>et seq<\/em>.) which applies to construction defects in newly constructed residential properties including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003.<\/p>\n<p>The California\u00a0Court of Appeals for the Fourth District, in\u00a0<em>Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC<\/em>\u00a0(2013) 219 Cal.App.4th 98, held\u00a0that the Right to Repair Act does\u00a0<em>not<\/em>\u00a0provide the exclusive remedy when pursing claims for construction defects involving \u201cactual\u201d property damage (<em>e.g.<\/em>, a defectively constructed\u00a0roof causing actual physical damage due to water intrusion as opposed to a defectively constructed roof that while constructed improperly does not cause actual physical damage). However, the\u00a0California Court of Appeals for the Fifth District, in\u00a0<em>McMillin Albany LLC v. Superior Court<\/em>\u00a0(2015) 239 Cal.App.4th 1132, which is currently pending before the California Supreme Court, held that the Right to Repair Act\u00a0<em>does<\/em>\u00a0in fact provide the exclusive remedy when pursuing claims for construction defects\u00a0whether they involve \u201cactual\u201d property damage or merely \u201ceconomic\u201d damages. For homeowners, they would prefer the option of pursuing remedies under either or both the Right to Repair Act (which includes detailed pre-litigation procedures and statutory construction standards) or under common law claims such as negligence (which do not include pre-litigation procedures and\u00a0have more flexible standards of care).<\/p>\n<p>The California Court\u00a0of Appeals for the Third District has now thrown its hat into the\u00a0ring . . . on the side of\u00a0<em>McMillan<\/em>.<\/p>\n<h2><em>Gillotti v. Stewart<\/em><\/h2>\n<p>In\u00a0<em>Gillotti v. Stewart<\/em>, Case No. C075611 (April 26, 2017), homeowner Ann Gillotti sued developer Knotty Bear Development, general contractor Knotty Bear Construction, Inc.,\u00a0grading subcontractor Rick Gerbo doing business as Gerbo Excavating and others for damage to trees on her property due to construction. Specifically, Gillotti claimed that trees on her property, located in Truckee, California, were dying due to the addition of mounds of soil on top of the tree roots in order to level the driveway of the property\u2019s sloped lot.<\/p>\n<p>After the jury found in favor of Gerbo,\u00a0Gillotti filed a motion for judgment notwithstanding the verdict, or in the alternative,\u00a0motion for new trial, arguing that the trial court improperly barred her from pursuing a negligence claim against Gerbo. The trial court denied Gillotti\u2019s motions, noting that while its decision conflicted with the Fourth District Court of Appeals\u2019 decision in\u00a0<em>Liberty Mutual<\/em>, that it believed that the case was wrongly decided and because it was decided in a different appellate district that it was not binding in the trial court (<strong>note:<\/strong>\u00a0the trial court was wrong\u00a0that issue. Court of appeal decisions, irrespective of what appellate district they were decided in, are binding on all superior courts.\u00a0<em>Auto Equity Sales, Inc. v. Superior Court<\/em>\u00a0(1962) 57 Cal.2d. 450).<\/p>\n<p>Gillotti appealed.<\/p>\n<h2>The Court of Appeals Decision<\/h2>\n<p>On appeal, the Court of Appeals for the Third District affirmed the trial court, stating that it \u201cdisagree[d]\u201d\u00a0with the Fourth District\u2019s decision in\u00a0<em>Liberty Mutual<\/em>\u00a0which did not analyze the language of Civil Code section 896 which provides:<\/p>\n<blockquote><p>In any action seeking recovery of damages arising out of, or related to deficiencies in, the residential construction, design, specifications, surveying, planning, supervision, testing, or observation of construction, a builder . . . . , a general contractor, subcontractor, material supplier, individual product manufacturer, or design professional, shall, except as specifically set forth in this title, be liable for, and the claimant\u2019s claims or causes of action shall be limited to violation of, the following standards, except as specifically set forth in this title.<\/p><\/blockquote>\n<p>Civil Code section 896, explained the Court of Appeals, \u201cas well the other sections (897, 931, 941, 943, 944) clearly and unequivocally expresses the legislative intent that the [Right to Repair] Act apply to all actions seeking recovery of damages arising out of, or related to deficiencies in, residential construction, except as specifically set forth in the Act\u201d and\u00a0\u201c[t]he Act does not specifically except actions arising from actual damages.\u201d \u201cTo the contrary, it authorizes recovery of damages, e.g., for \u2018the reasonable cost of repairing and rectifying any damages resulting from the failure of the home to meet the standards. . . . \u2018\u201d<\/p>\n<h2>Conclusion<\/h2>\n<p>The California Supreme Court granted review of the\u00a0<em>McMillin<\/em>\u00a0case on November 24, 2015. Since then, briefs have been filed, including numerous amicus curiae briefs from the Consumer Attorneys of California, the California Building Industry Association and the\u00a0California Professional Association of Specialty Contractors. Until the Supreme Court weighs in this will remain an open issue in California.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Garret Murai | California Construction Law Blog | August 9, 2017 Earlier, we wrote about an appellate court split concerning the Right to Repair Act (Civil Code sections 895\u00a0et seq.) which applies to construction defects in newly constructed residential properties including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003. The&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/supreme-court-showdown-right-repair-act-exclusive-remedy-homeowners\/\">Continue reading <span class=\"screen-reader-text\">In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for Homeowners<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4],"tags":[9895,88,19,434],"class_list":["post-892724","post","type-post","status-publish","format-standard","hentry","category-construction-defects","tag-advise-consult","tag-california","tag-construction-defects-2","tag-right-to-repair-act","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for Homeowners - Advise &amp; 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