SB 800 became law in California in 2002 to reduce construction defect litigation. It established new requirements for pre-litigation procedures and expanded the definition of actionable construction defects. The law aims to resolve disputes prior to litigation through mandatory notice and repair procedures. It applies to original homeowners and subsequent buyers of new residential units sold after 2003. SB 800 outlines functionality standards, warranty obligations of builders and homeowners, and altered some statutes of limitations for construction defect claims.
Catatan dan Usulan atas RUU Perubahan UU ITEICT Watch
Catatan dan Usulan Masyarakat Sipil atas RUU Perubahan UU ITE. Naskah ini telah disampaikan pula saat RDPU dengan Komisi I DPR RI, Rabu 3 Februari 2016.
Surat penawaran dari CV Automega menawarkan paket peralatan cuci mobil hidrolik seharga Rp. 39.500.000 kepada Ibu Martha, termasuk 5 unit hidrolik, kompresor, tabung cuci, shampoo, dan perlengkapan lainnya. Harga belum termasuk biaya pengiriman, akomodasi teknisi, dan perlengkapan instalasi.
Perjanjian lisensi merek ini mengatur penggunaan lisensi merek secara eksklusif/non-eksklusif oleh pihak kedua atas merek yang dimiliki pihak pertama untuk kepentingan bisnis tertentu di Indonesia. Perjanjian ini mengatur syarat dan ketentuan penggunaan lisensi merek tersebut termasuk pembayaran royalti, kewajiban perlindungan merek, pendaftaran merek, serta tanggung jawab para pihak.
NPWP&NPPKP ::: Formulir penghapusan npwp per 20 2013Roko Subagya
(1) Formulir ini digunakan untuk menghapuskan Nomor Pokok Wajib Pajak (NPWP) secara sukarela atau secara jabatan. (2) Terdapat beberapa alasan penghapusan NPWP seperti wajib pajak meninggal, tidak lagi memenuhi syarat, meninggalkan negara selamanya, atau tidak lagi memiliki kewajiban pajak. (3) Pemohon atau pengusul harus menandatangani pernyataan bahwa
Catatan dan Usulan atas RUU Perubahan UU ITEICT Watch
Catatan dan Usulan Masyarakat Sipil atas RUU Perubahan UU ITE. Naskah ini telah disampaikan pula saat RDPU dengan Komisi I DPR RI, Rabu 3 Februari 2016.
Surat penawaran dari CV Automega menawarkan paket peralatan cuci mobil hidrolik seharga Rp. 39.500.000 kepada Ibu Martha, termasuk 5 unit hidrolik, kompresor, tabung cuci, shampoo, dan perlengkapan lainnya. Harga belum termasuk biaya pengiriman, akomodasi teknisi, dan perlengkapan instalasi.
Perjanjian lisensi merek ini mengatur penggunaan lisensi merek secara eksklusif/non-eksklusif oleh pihak kedua atas merek yang dimiliki pihak pertama untuk kepentingan bisnis tertentu di Indonesia. Perjanjian ini mengatur syarat dan ketentuan penggunaan lisensi merek tersebut termasuk pembayaran royalti, kewajiban perlindungan merek, pendaftaran merek, serta tanggung jawab para pihak.
NPWP&NPPKP ::: Formulir penghapusan npwp per 20 2013Roko Subagya
(1) Formulir ini digunakan untuk menghapuskan Nomor Pokok Wajib Pajak (NPWP) secara sukarela atau secara jabatan. (2) Terdapat beberapa alasan penghapusan NPWP seperti wajib pajak meninggal, tidak lagi memenuhi syarat, meninggalkan negara selamanya, atau tidak lagi memiliki kewajiban pajak. (3) Pemohon atau pengusul harus menandatangani pernyataan bahwa
Dokumen tersebut membahas tentang aspek hukum perjanjian sewa menyewa, termasuk pengertian sewa menyewa menurut KUHPerdata, kewajiban pihak yang menyewakan dan penyewa, gangguan pihak ketiga, larangan mengulang-sewakan tanpa izin, dampak jual beli dan kematian terhadap perjanjian sewa, serta jenis perjanjian sewa terkait properti seperti rumah, rumah susun, dan properti lain
Dokumen tersebut membahas aspek hukum yang perlu diteliti dalam studi kelayakan bisnis, termasuk bentuk badan hukum perusahaan, perizinan yang dibutuhkan, dan dokumen pendukung lainnya. Jenis-jenis badan hukum yang dijelaskan antara lain perusahaan perseorangan, firma, CV, PT, BUMN, BUMD, dan yayasan beserta kelebihan dan kekurangannya. Dokumen yang perlu divalidasi keabsahan
Networking dan internetworking (jaringan dan koneksi antar jaringan)Davin Wijaya
Pembahasan mengenai Network dan Internetworking, Jaringan telekomunikasi yang memungkinkan antar komputer untuk saling berkomunikasi dengan bertukar data.
Dokumen tersebut membahas tentang Pajak Pertambahan Nilai (PPN) dan Pajak Penjualan atas Barang Mewah (PPnBM) di Indonesia. PPN dikenakan pada barang dan jasa, sedangkan PPnBM hanya pada barang-barang mewah tertentu. Keduanya menggunakan sistem kredit pajak di mana pajak masukan dapat dikompensasikan dengan pajak keluaran.
Dokumen tersebut membahas tentang membaca cepat, termasuk pengertian, teknik, tujuan, dan rumus yang terkait. Secara singkat, membaca cepat bertujuan untuk menyerap informasi secara cepat dari bahasa tulis dengan dua teknik utama, yaitu teknik layap dan teknik pindai.
Perjanjian sewa menyewa antara Bambang Eko Suratmoko mewakili Partai Golkar sebagai pemilik tanah dan gedung (pihak pertama) dengan Arnan Harsanto mewakili KSU Bangun Sejahtera (pihak kedua) menyewa gedung seluas 35m2 untuk 5 tahun dengan biaya sewa Rp60 juta yang dibayar Rp12 juta per tahun. Perjanjian ini mengatur hak dan kewajiban para pihak terkait sewa gedung tersebut.
1. Dokumen ini adalah perjanjian sewa menyewa antara PT Pihak Pertama yang menyewakan Ruangan Unit dan PT Pihak Kedua yang menyewa Ruangan Unit untuk usaha toko selama 5 tahun.
2. PT Pihak Kedua setuju membayar biaya sewa, uang jaminan, biaya layanan, pajak, biaya listrik dan air, serta biaya hukum yang timbul akibat perjanjian ini.
3. Perjanjian ini mengatur syarat dan ketentuan mengen
Contoh Perjanjian Kompensasi Kayu Terbaru (Beli Perjanjian, Hub: 08118887270 ...GLC
Perjanjian ini mengatur kompensasi kayu yang akan diberikan PT Perusahaan kepada perwakilan masyarakat hukum adat atas areal perkebunan seluas beberapa hektar. Kompensasi akan dibayarkan dalam jumlah tertentu dan pihak kedua akan melepaskan hak atas kayu tersebut. Perjanjian ini juga mengatur tanggung jawab para pihak dan penyelesaian sengketa.
Real time Attorney advice memo priviledged and confidentialnicemanin
Morris Associates Engineering Consultants filed a mechanic's lien for $19,425.82 for engineering services provided to Orchard Hill Farms between 2007-2008. Orchard Hill Farms argues the lien should be dismissed for two reasons: 1) Morris Associates breached its contract by not completing all services and 2) the lien amount was willfully exaggerated in violation of NY Lien Law. If the lien is voided for exaggeration, Morris Associates would be liable for damages under Lien Law §39a including attorney fees.
This letter requests a pre-motion conference regarding an anticipated motion to dismiss an amended complaint filed against Digicel Haiti. It summarizes that the amended complaint should be dismissed for failing to meet pleading standards under FRCP 8(a), 9(b), and 12(b)(6), and based on the act-of-state doctrine and forum non conveniens. Specifically, the letter argues that the amended complaint does not provide a short, plain statement of claims, engages in impermissible group pleading, lacks specific allegations of fraud, and requires invalidating acts of the Haitian government.
Texas Landlords and Tenants Guide - 2010Bob Lowery
This document summarizes Texas laws regarding landlord and tenant responsibilities. It discusses a landlord's duty to repair rental properties and provide contact information to tenants. It also covers a tenant's rights and responsibilities regarding repairs, security deposits, lease terminations, and other issues. The document is intended to help both landlords and tenants understand their legal rights and obligations under Texas property codes.
This document summarizes mechanics' lien and construction trust fund laws. It discusses how these laws vary by state but generally aim to protect contractors, subcontractors, and suppliers by giving them liens on properties they worked on and making certain project funds held in trust. However, these laws can conflict with secured interests like mortgages and bank accounts. The document examines court cases that have addressed disputes in balancing these competing claims.
Power Point presentation on the intricacies of Arizona Lien Law. Owners can learn how to protect themselves from double payment and Contractors, Subcontractors and Suppliers can learn how to use another tool to get paid.
Selected as a "Best Law Firm" in real estate in 2019 this newsletter by Adam Leitman Bailey P.C. showcases some of the firms crowning moments during the Winter of 2018.
The document discusses key changes to landlord-tenant law in New York resulting from the passage of the Housing Stability and Tenant Protection Act of 2019 (HSTPA). It focuses on how the HSTPA has impacted nonpayment eviction proceedings by tenants. Specifically, it examines the traditional "good cause" standard tenants must meet to stay an eviction warrant under RPAPL §749(3), and explores how a new provision under RPAPL §753 allowing tenants to claim "extreme hardship" may provide an additional avenue of relief in such proceedings. The article aims to guide practitioners on navigating nonpayment evictions in light of the new law.
Dokumen tersebut membahas tentang aspek hukum perjanjian sewa menyewa, termasuk pengertian sewa menyewa menurut KUHPerdata, kewajiban pihak yang menyewakan dan penyewa, gangguan pihak ketiga, larangan mengulang-sewakan tanpa izin, dampak jual beli dan kematian terhadap perjanjian sewa, serta jenis perjanjian sewa terkait properti seperti rumah, rumah susun, dan properti lain
Dokumen tersebut membahas aspek hukum yang perlu diteliti dalam studi kelayakan bisnis, termasuk bentuk badan hukum perusahaan, perizinan yang dibutuhkan, dan dokumen pendukung lainnya. Jenis-jenis badan hukum yang dijelaskan antara lain perusahaan perseorangan, firma, CV, PT, BUMN, BUMD, dan yayasan beserta kelebihan dan kekurangannya. Dokumen yang perlu divalidasi keabsahan
Networking dan internetworking (jaringan dan koneksi antar jaringan)Davin Wijaya
Pembahasan mengenai Network dan Internetworking, Jaringan telekomunikasi yang memungkinkan antar komputer untuk saling berkomunikasi dengan bertukar data.
Dokumen tersebut membahas tentang Pajak Pertambahan Nilai (PPN) dan Pajak Penjualan atas Barang Mewah (PPnBM) di Indonesia. PPN dikenakan pada barang dan jasa, sedangkan PPnBM hanya pada barang-barang mewah tertentu. Keduanya menggunakan sistem kredit pajak di mana pajak masukan dapat dikompensasikan dengan pajak keluaran.
Dokumen tersebut membahas tentang membaca cepat, termasuk pengertian, teknik, tujuan, dan rumus yang terkait. Secara singkat, membaca cepat bertujuan untuk menyerap informasi secara cepat dari bahasa tulis dengan dua teknik utama, yaitu teknik layap dan teknik pindai.
Perjanjian sewa menyewa antara Bambang Eko Suratmoko mewakili Partai Golkar sebagai pemilik tanah dan gedung (pihak pertama) dengan Arnan Harsanto mewakili KSU Bangun Sejahtera (pihak kedua) menyewa gedung seluas 35m2 untuk 5 tahun dengan biaya sewa Rp60 juta yang dibayar Rp12 juta per tahun. Perjanjian ini mengatur hak dan kewajiban para pihak terkait sewa gedung tersebut.
1. Dokumen ini adalah perjanjian sewa menyewa antara PT Pihak Pertama yang menyewakan Ruangan Unit dan PT Pihak Kedua yang menyewa Ruangan Unit untuk usaha toko selama 5 tahun.
2. PT Pihak Kedua setuju membayar biaya sewa, uang jaminan, biaya layanan, pajak, biaya listrik dan air, serta biaya hukum yang timbul akibat perjanjian ini.
3. Perjanjian ini mengatur syarat dan ketentuan mengen
Contoh Perjanjian Kompensasi Kayu Terbaru (Beli Perjanjian, Hub: 08118887270 ...GLC
Perjanjian ini mengatur kompensasi kayu yang akan diberikan PT Perusahaan kepada perwakilan masyarakat hukum adat atas areal perkebunan seluas beberapa hektar. Kompensasi akan dibayarkan dalam jumlah tertentu dan pihak kedua akan melepaskan hak atas kayu tersebut. Perjanjian ini juga mengatur tanggung jawab para pihak dan penyelesaian sengketa.
Real time Attorney advice memo priviledged and confidentialnicemanin
Morris Associates Engineering Consultants filed a mechanic's lien for $19,425.82 for engineering services provided to Orchard Hill Farms between 2007-2008. Orchard Hill Farms argues the lien should be dismissed for two reasons: 1) Morris Associates breached its contract by not completing all services and 2) the lien amount was willfully exaggerated in violation of NY Lien Law. If the lien is voided for exaggeration, Morris Associates would be liable for damages under Lien Law §39a including attorney fees.
This letter requests a pre-motion conference regarding an anticipated motion to dismiss an amended complaint filed against Digicel Haiti. It summarizes that the amended complaint should be dismissed for failing to meet pleading standards under FRCP 8(a), 9(b), and 12(b)(6), and based on the act-of-state doctrine and forum non conveniens. Specifically, the letter argues that the amended complaint does not provide a short, plain statement of claims, engages in impermissible group pleading, lacks specific allegations of fraud, and requires invalidating acts of the Haitian government.
Texas Landlords and Tenants Guide - 2010Bob Lowery
This document summarizes Texas laws regarding landlord and tenant responsibilities. It discusses a landlord's duty to repair rental properties and provide contact information to tenants. It also covers a tenant's rights and responsibilities regarding repairs, security deposits, lease terminations, and other issues. The document is intended to help both landlords and tenants understand their legal rights and obligations under Texas property codes.
This document summarizes mechanics' lien and construction trust fund laws. It discusses how these laws vary by state but generally aim to protect contractors, subcontractors, and suppliers by giving them liens on properties they worked on and making certain project funds held in trust. However, these laws can conflict with secured interests like mortgages and bank accounts. The document examines court cases that have addressed disputes in balancing these competing claims.
Power Point presentation on the intricacies of Arizona Lien Law. Owners can learn how to protect themselves from double payment and Contractors, Subcontractors and Suppliers can learn how to use another tool to get paid.
Selected as a "Best Law Firm" in real estate in 2019 this newsletter by Adam Leitman Bailey P.C. showcases some of the firms crowning moments during the Winter of 2018.
The document discusses key changes to landlord-tenant law in New York resulting from the passage of the Housing Stability and Tenant Protection Act of 2019 (HSTPA). It focuses on how the HSTPA has impacted nonpayment eviction proceedings by tenants. Specifically, it examines the traditional "good cause" standard tenants must meet to stay an eviction warrant under RPAPL §749(3), and explores how a new provision under RPAPL §753 allowing tenants to claim "extreme hardship" may provide an additional avenue of relief in such proceedings. The article aims to guide practitioners on navigating nonpayment evictions in light of the new law.
This document discusses various legal issues in engineering design and practice. It introduces laws, regulations, and standards that engineers must consider. Laws come from legislation and court cases, while regulations are administrative rules from agencies enforcing laws. Standards can be voluntary guidelines set by professional groups or mandatory when referenced in regulations. Engineers must understand contract law, tort law principles like negligence and product liability, and how to comply with relevant statutes, regulations, and standards to avoid legal liability.
Claims serviceletter 6 security for claimslucien_lesuis
The document discusses two topics related to security for maritime claims:
1) An amendment to the InterClub Agreement 1996 that allows a party providing security for an original cargo claim to obtain counter-security from charterers on a reciprocal basis. This addresses an issue where charterers were not previously required to provide security until a claim was settled.
2) "Rule B attachments" in US courts, which allow attachment of a defendant's assets without notice. From 2002-2009, electronic funds transfers (EFTs) passing through US banks could be attached, but this was overturned and EFT attachments are no longer permitted. Rule B attachments of vessels, bunkers, cargo and bank accounts are still allowed.
This summarizes a document reviewing environmental law cases from 2009-2010. It discusses three cases:
1) Fresh Meadow Food Serv., LLC v. RB 175Corp. upheld a RICO claim against a defendant who concealed underground storage tanks and contaminated soil when selling a property.
2) Wickens v. Shell Oil Co. addressed recoverable attorney fees under Indiana's Underground Storage Tank Act.
3) Evansville Greenway & Remediation Trust v. S. Ind. Gas & Elec. Co. concerned the common interest privilege and apportionment of liability under CERCLA. The court applied the privilege to communications between parties working to remediate contaminated sites. It also found CERCLA
Amendments to New Jersey\'s Construction Lien Lawftaraps
The document summarizes amendments made to New Jersey's Construction Lien Law in 2011. Key changes include clarifying definitions, revising forms for notices, lien claims and affidavits, and amplifying provisions for calculating and discharging satisfied liens. Highlights of revisions to the law are presented, including changes affecting residential construction projects, statutory forms, and calculating the amount of a lien claim.
2018 Year in Review: Recent Midwest Legal Decisions Impacting Real Estate and...Quarles & Brady
In 2018, the Midwest (defined as Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, and Wisconsin) saw a number of statutory changes and court decisions that reshaped and framed a number of key issues every developer, design professional, owner, lender, contractor, and real estate and construction lawyer must know. Quarles & Brady lawyers will discuss and take questions regarding recent decisions impacting real estate and construction law.
Take Two The Expanding Scope Of The Rescission Doctrineibristol
This article discusses the expanding scope of the IRS's rescission doctrine, which allows parties to unwind transactions and return to their pre-transaction positions if certain conditions are met. Specifically, it summarizes a recent private letter ruling that permitted a foreign parent company and its US subsidiary to rescind a debt-for-equity exchange and related transactions, and enter into new transactions to achieve their desired tax treatment, as long as they returned to their pre-transaction positions by year's end. The IRS seems willing to apply the rescission doctrine liberally and allow follow-up transactions if the parties are fully restored to their original positions in the same tax year.
Construction Meets Texas Law: Selected Statutory OverridesSean McChristian
This document discusses several Texas laws that override or modify contractual provisions commonly found in construction contracts. It summarizes:
1) Texas Civil Practice and Remedies Code Section 16.071, which voids contractual notice periods of less than 90 days and allows notice to any convenient agent of the party requiring notice.
2) Texas Civil Practice and Remedies Code Section 16.070, which voids contractual limitation periods of less than two years and one day from when a cause of action accrues.
3) Texas Business and Commerce Code Section 272.001, which allows parties to void contractual provisions requiring litigation, arbitration, or choice of law outside of Texas for construction projects in Texas.
SKGF_Advisory_Real World Impacts of Reexamination Practice and Procedure_2008SterneKessler
This document discusses issues related to patent reexamination procedures and their impact on patent owners. It provides background on ex parte and inter partes reexamination procedures. It then discusses concerns about the low standard for instituting reexaminations, the impact of reexaminations on capital markets, and identifying the real party in interest in inter partes reexaminations. It proposes solutions such as increasing the standard for reexaminations involving previously litigated patents or previous reexams and keeping reexamination proceedings confidential until a final office action.
This document discusses the requirements for valid title requisitions in commercial real estate purchase agreements in Ontario. It begins by explaining that agreements generally allow the buyer a period to investigate title and raise valid requisitions. It then discusses what constitutes a valid title requisition according to case law, noting they must identify a specific title problem/deficiency and proposed solution. The document uses sample language from an OREA agreement to illustrate how it sets time periods for title examinations and contractual requisitions. It concludes by explaining that "good title" is a common law requirement, meaning title that can be enforced on an unwilling buyer without defects or risks of litigation.
Professional liability insurance for engineersGerald Brunker
The document summarizes information about a bridge collapse in Minneapolis in 2007 and the resulting litigation. It discusses that the bridge collapsed due to a design flaw, killing 13 people and injuring 145. This led to numerous lawsuits against parties involved in the design and construction of the bridge. Settlements totaling over $95 million were reached with victims and governmental entities. The document also provides information on professional liability insurance and statutes that affect liability for design professionals.
Building Code Enforcement and Contractual ConsequencesScott Wolfe
My part in a building code seminar sponsored by Lorman Education Services. This presentation focuses on building code enforcement mechanisms in Louisiana, and the effect building code violations can have on contracts, parties to contracts, and third parties. Also, it touches on defenses available to parties when building code violations exist, as well as green building code issues that are now arising with green building projects.
Similar to Technical Journal: SB800 Guide To Requirements And Response Strategies (20)
Building Code Enforcement and Contractual Consequences
Technical Journal: SB800 Guide To Requirements And Response Strategies
1. SB 800: GUIDE TO REQUIREMENTS AND RESPONSE STRATEGIES
Author: Jon T Petrich
Abstract: Senate Bill 800 (SB 800) became law for California in September of 2002 and is now codified as
California Civil Code §§895, et seq. California civil code sections §§895 - 945.5: “Requirements for Actions for
Construction Defects” was brought about by plaintiffs’ attorneys in aid to recover costs for construction defects
which had not necessarily caused property damage or physical injury at time of claim. SB 800 aims to resolve
disputes prior to litigation thus foregoing expensive lawyer contingency fees awarding greater value of repair to
the homeowner for construction defects. With the passing of Civil Code §§895, it is essential the “builder” and
homeowner understand their rights and responsibilities, and for their representatives to understand how to protect
them. This paper will clarify important items such as requirements to initiate SB 800 and it will provide
timelines which all parties must adhere to. The paper will also demonstrate the powers and protections which
both the “builder” and homeowner possess under the law. Further response strategies to settlement of “unmet
standards” will also be explored.
Introduction and Background second reason California courts have denied the ability to
file suit was due to tort law. i.e. Subsequent homeowners
SB 800 (Civil Code §§895-945.5) known as the “Fix IT” could only sue if the discovered latent defects caused
or “Right to cure” law was enacted by the California personal injury or secondary property damage.3
legislature at the end of 2002 in an effort to reduce the
amount of defect litigation within the state. Unnecessary SB 800 is a non retroactive law which applies only to
defect litigation had directly caused a virtual collapse in original residential real estate construction (single family
the insurance market for home construction thus residential, condominiums, and townhouses, but not
increasing the rising cost of housing in California.1 In condominium conversions, apartments or remodels)
addition to higher real estate costs, the excessive litigation intended to be sold as an individual unit, whether or not
costs and insurance premiums were passed to the the unit is attached. SB 800 is only valid for new
consumer by way of housing shortage.2 residential units where the purchase agreement (not close
of escrow) between the builder and homebuyer occurred
Before SB 800 was enacted, California didn’t have a clear on or after January 1st, 2003.4 In order for custom homes
legal definition of what a construction defect was. Only to apply to SB 800, the custom homebuilder must be
new homeowners or original purchasers were protected selling real estate (land and house). If the homebuilder is
by their home warranties which would allow them to file only performing the construction of the home, the builder,
a claim for latent defects discovered within a ten year in this case, will be in a construction contract with the
period. Upon settlement, the original homeowner was homeowner and will not be subject to the statute.5,6
faced with an unsatisfactory amount of money to make
sufficient repairs. The homeowner was awarded the The statute applies to both original homeowners and
leftover money from the builder’s insurance company subsequent buyers.7 The new law establishes extensive
only after the lawyer’s contingency fee was paid. If the new rights, obligations, and remedies to both sides. In
original homeowner sold his or her house before the ten general, the new statute (1) defines construction
year statute of limitations had been exhausted, the builder functionality standards (CC §§896-897) expanding the
was relieved of any liability. Historically, California
courts have denied subsequent owners the ability to file
3
action for latent defects under the laws of contract, which Purchasers, Privies, and Predicaments: A Defect in California’s
are between the builder and original homeowner. The Construction Defect Law, p.278
4
California Civil Code §938
5
CBIA: SB 800: The Homebuilder “FIX IT” Construction Dispute
1
CBIA: SB 800: The Homebuilder “FIX IT” Construction Dispute Resolution Law – A Summary Compliance Guide for the California
Resolution Law – A Summary Compliance Guide for the California Homebuilding Industry, Appendix C
6
Homebuilding Industry, p.2 Construction Defect Litigation: The Playing Field Has Changed. A
2
Construction Briefings: Construction Defects Litigation and The Navigational Guide to Senate Bill 800, p.2
“Right to Cure” Revolution, p.1 7
California Civil Code §945
SB 800: Guide to Requirements and Response Strategies Page 1 of 9
2. damages homeowners may recover for, (2) imposes a Civil Code Introduction
mandatory claim and repair procedure, (3) establishes Legislative Counsel’s Digest
regulations for pre-litigation of unmet building standards Section 1: Declaration
(CC §§910-938), (4) overhauls the statute of limitations Section 2: Section §43.99
for new residential construction (CC §895, 896, & 900), Section 3: Title 7 – Requirements for Actions for
and (5) provides limited immunity for third parties Construction Defects
providing quality review of plans and construction.8 The Ch. 1: Definitions (CC §895)
new law is not intended to supersede any other existing Ch. 2: Actionable Defects i.e. functionality standards
legislation already in place. Civil Code 1375, commonly (CC §§896 – 897)
known as the Calderon Process is still actionable for This section contains 45 standards under seven
attached units sold before and after January 1st, 2003 and different sections. The sections include: water
will remain in effect until July 1st, 2010.9 The claimant is instruction (18 standards), structural (4 standards),
required to follow both SB 800 and the Calderon Process soils (3 standards), fire protection (3 standards),
if the issues at hand are between the owners, plumbing and sewer (1 standard), electrical systems
homeowner’s association, and their builders.10 In the (1 standard), and other (15 standards). SB 800 further
event SB 800 and the Calderon process are applicable, the notes the above standards are intended to address
Calderon Process pre-litigation procedures will come into every function or component of a structure. In the
effect after the SB 800 pre-litigation procedures have event of failure to address a certain component or
been completed. SB 800 states that the substantially function of the structure or surrounding land, the
similar requirements between the two statutes do not have issue shall be actionable if it causes damage.14
to be repeated.11 As stated above, both the Calderon Ch. 3: Obligations (CC §§900 – 907).
Process and SB 800 procedures will have to be used in Addresses mandatory one year warranty for fit and
conjunction for applicable settlements until July 1st, 2010. finish items, a builder’s option for an Enhanced
Protection Agreement, and the homeowner’s
SB 800 does not apply to any action concerning fraud, or maintenance obligations.
personal injury.12 Select statutes of limitations under the Ch. 4: Pre-Litigation Procedure (CC §§910 – 938)
new law have been altered. The new statute of limitations Ch. 5: Procedure (CC §§941 – 945.5)
ranges from 1 year to 10 years, where as in the past only a
poorly defined 10 year statute existed. All functionality A deficiency within the functionality standards can come
standards located in Chapter 2 of the statute still have a about as a design deficiency (condition causing the
ten year period unless otherwise stated. For a list of building or system to not function properly), a material
functionality standards subject to a statute of limitations deficiency (use of inferior materials or components), a
less than 10 years, refer to Appendix A. construction deficiency (poor quality of workmanship), or
a geotechnical problem (incorrect accounting of soil
SB 800 helps the construction community and conditions resulting in damage to the foundation system).
homeowners resolve construction defect claims outside of
court, also known as nonadversarial procedures (pre- Requirements to Initiate Civil Code §§895 – 945.5
litigation, pre-arbitration). Section §910 of SB 800
specifically states that the claimant “homeowner” must Chapter 4 of SB 800 (CC §§910 - 938) only requires the
follow the pre-litigation procedures of the statute claimant or his legal representative to provide a written
assuming the builder opted to enforce the statute in the notice to the builder noting the construction of the real
first place. Only after these procedures have failed or not estate violates any one of the standards set forth in
led to a resolution between the two parties can the Chapter 2 to initiate the pre-litigation procedure under the
claimant file an action against the “builder”. statute.15 The homeowner only needs to demonstrate to
the builder, in accordance with the specific functionality
standard, that the home doesn’t meet the applicable
SB 800 Layout
standard. No showing of causation or damages is
SB 800 has several distinct sections. To aid the reader the required to meet the burden of proof regarding the
sections are outlined below. A complete copy of SB 800 violation set forth.16 SB 800 can not be initiated for the
can be downloaded if needed.13 purpose of sole recovery due to a defective manufactured
SB 800 contains Civil Code §43.99, §§895 – 945.5 and is product where the manufacturer is the sole defendant.17 If
laid out in the following manner. the builder is included in the claim solely for a defect in a
manufactured product, SB 800 will apply to the claim
8
Design Professionals’ Practice Update – California Law: New against the builder.
Residential Construction Defects Law, p.1
9
Attached Housing: Its Unique Approach, p.1
10
Getting a Fix on the Right to Repair: Builders Must Be Careful When
Altering SB 800’s Pre-Litigation Procedures, p.2 14
California Civil Code §897
11 15
California Civil Code §935 California Civil Code §910(a)
12 16
California Civil Code §942 California Civil Code §941(e)
13 17
http://www.dre.cahwnet.gov/sb800.htm California Civil Code §896(g)(3)(E)
SB 800: Guide to Requirements and Response Strategies Page 2 of 9
3. A strict timeline must be adhered to by both sides unless repairs.25 In addition the builder must inform the
each side of the party agrees upon an alternate, less claimant of the right to request up to three alternative
stringent timeline. It is essential that all requests and contractors from which to choose repairs to be
responses be done on paper and recorded. All performed by. The alternative contractors cannot be
correspondence shall include the representatives of both owned or controlled by the builder.
parties. Failure to comply by either party could release The builder’s offer to repair must also come with an
the opposition from further obligations under the pre- offer to mediate if the claimant chooses. If the
litigation procedures. The following outline highlights mediation fails, the homeowners shall allow the builder
the timeline requirements set forth by Chapter 4: Pre- to proceed with the proposed repairs as presented.26
litigation Procedure (CC §§910 – 938). A graphical Alternatively the builder may elect to offer the
representation of SB 800’s timeline has been included in homeowner a cash offer settlement. The homeowner
Appendix B for the reader to refer to alongside the can either accept the builder’s offer or reject it and file
bulleted descriptions below.18 for action. In which case, standards beside pre-
Within 30 days of request by the claimant, the builder is litigation standards contained in Chapter 4 of the statute
required to provide access to an extensive amount of shall still apply.27
documents including plans, specifications, maintenance Assuming no cash offer was presented, the homeowner
and preventative maintenance recommendations from has 30 days to respond and approve the builder’s offer
both the builder and manufacturer, warranties, etc.19 enabling the builder to proceed with the repair.28
Select documents listed above are required to be If the homeowner elects to have an alternate contractor
disclosed to the homeowner at time of original sale as perform the work, the builder is entitled to an additional
well.20 In addition, the builder is required to keep 20 days to perform a noninvasive inspection with the
certain documents maintained and recorded for 10 contractor candidates.29
years. If practical, it is recommended the builder The builder must provide a list of optional contractors
provide all documents to the owner upon sales purchase to the owner within 35 days of request to opt for an
on digital storage. This way the purchaser has already alternative contractor to perform the work.30
been provided with many of the documents required Within 20 days of receiving the list of alternates, the
before they are needed. owner shall authorize either the original builder or an
Upon receiving the claim, the builder must respond to alternative contractor to perform the repairs.31
the claimant, acknowledging the notice was received. If a repair resolution has resulted from the above
Response must occur within 14 days. options, the repairs shall commence on a mutually
The builder has an additional 14 days after convenient date within a) 14 days of homeowner
acknowledging receipt of claimant’s notice to complete acceptance of the builder’s offer, b) within 14 days of
an inspection and / or testing of the unmet functionality selection of an alternate contractor, c) within 7 days of
standards.21 The builder is required to give sufficient mediation completion, if one occurred, or d) within 5
notice to third parties so they can attend the inspection days after a permit is obtained if one is required. Due
if the builder intends to hold them responsible. 22 diligence on obtaining a permit is required from the
SB 800 states that all property shall be restored to pre- builder.32
existing condition within 48 hours of inspection.23 SB 800 states that “Every effort shall be made to
The builder may opt to perform a second inspection if complete the repair within 120 days.”33 It is essential
deemed necessary. Request to do so must be within the builder accounts for unforeseen circumstances
three days following the initial inspection. The second which could cause delays or complications in the repair
inspection follows all the same rules as the initial and process. If the builder fails to complete the repair
must be completed within 40 days of the initial within the time specified the claimant has the right to
inspection.24 proceed to file an action.34 All repairs can be viewed
Within 30 days of the initial inspection, or if requested, and documented if requested.35
second inspection, the builder may offer to make If the builder elects, he has the option to choose to
make some but not all repairs. Doing so would prompt
18
The timeline assumes the maximum time limits are exhausted in each a future mediation. Reasons for partial repair must be
phase through the process. If response or completion to certain items
occurs before the maximum time, the occurrences within each
subsequent step will be shifted accordingly. The time limits of SB 800
25
must be adhered to in the prescribed manners of the statute. It should be California Civil Code §917
26
noted the description below and timeline in Appendix B are simplified. California Civil Code §919
27
The reader should take caution and refer to the full length “Pre- California Civil Code §929(a)
Litigation Procedures” written in SB 800 (CC §§910 – 938) for a fully 28
California Civil Code §918
29
detailed timeline. California Civil Code §918
19 30
California Civil Code §912(a -i) California Civil Code §918
20
A list of these documents can be found in CBIA’s Compliance Guide 31
California Civil Code §918
21 32
California Civil Code §916(a) California Civil Code §921(a)
22 33
California Civil Code §916(e) California Civil Code §921(b)
23 34
California Civil Code §916(a) California Civil Code §925
24 35
California Civil Code §916(c) California Civil Code §922
SB 800: Guide to Requirements and Response Strategies Page 3 of 9
4. submitted in writing along with support for the builders liability to the functionality standards defined in
reasons.36 Chapter 2. In addition to following imposed maintenance
Upon completion of repair, the builder cannot obtain a guidelines, homeowners are required to follow duties,
release or waiver giving him indemnification against including proper notification and permission to repair to
repairs. The claimant has additional protection upon the builder. Mediation hurdles are mandated in the law to
completion of repair to file an action to claim help resolve disputes which may arise through the course
inadequate repair and / or violation of the applicable of repair. In addition, SB 800 sets forth options for the
standard.37 builder to opt-out of provisions if chosen.
Upon completion of repair, if no mediation has already
occurred through the process one is required before any The builder has the ability to enforce an “Enhanced
action can be filed.38 Protection Agreement” (EPA)41 instead of the
functionality standards found in Chapter 2.42 An EPA is a
SB 800 sets forth a procedure which is both vigorous and contractual document by which the builder gives the
strict. It is imperative the builder work closely with his or homebuyer equal or greater protections than the
her comprehensive general liability insurance in place. functionality standards. The EPA must provide
The claim notification time period stated above is short protections for all standards for times equal to or greater
and must be adhered to. Insurance company responses than time periods SB 800 mandates in Chapter 2. An
and claim adjuster availability could have a negative EPA might be beneficial for some builders to help meet
impact on the process if efficient communication isn’t insurance requirements. An EPA could also prove
practiced. Insurance company adjustors are required to beneficial if the builder feels it necessary to further define
attend the inspections and mediations. An additional functionality terms contained in his or her own
impact could arise depending on the additional insured contractual warranty providing further clarity. The
carriers of sub-contractors. builder must offer the EPA to the homebuyer no later than
the close of escrow.43 If any provision of the enhanced
Furthermore, the builder should practice good file protection agreement is later found to be unenforceable as
documentation and handling practices in the event SB 800 not meeting the minimum standards of Chapter 2, the
is initiated. In cases of large projects such as builder may still use the functionality standards found in
condominium complexes, the above timelines might SB 800 as a fallback alternative.44
prove to be impossible to adhere to. In which case, opting
out of SB 800 procedures might show to be more realistic In addition to an EPA, the builder may additionally elect
by initiating an Enhanced Protection Agreement and / or to enforce a uniquely drafted “alternative contractual
an alternative contractual nonadversarial procedure. nonadversarial procedure” instead of the nonadversarial
Attorneys should be consulted when creating these project statutory procedures set forth in Chapter 4 of SB 800.45
specific documents. By doing so, the builder is taking a substantial risk by
possibly losing the nonadversarial statutory procedures of
Builder’s Options and Safeguards Chapter 4 as well as the notice, repair, and mediation
procedures under SB 800 if the alternative procedures are
Under SB 800 the definition of a “builder” is a developer, deemed unenforceable. While simplifying the repair
builder, general contractor, contractor, or original seller process and modifying some of the procedural steps of SB
who, at the time of sale, was also in the business of 800 could sound beneficial to the builder, the more
building, developing, constructing, or selling residential conservative approach is for a builder not to opt out of SB
units to the public for property purchase.39 Contractors 800.46 If the builder’s contractual provisions are deemed
who work on the property but are not a partner, member, invalid, the claimant my bypass the SB 800 procedures
or subsidiary of the “builder” are not defined as the and proceed directly to litigation. Once the builder has
“builder”. All nonaffiliated contractors are treated the chosen to enforce an alternative contractual
same as subcontractors, material suppliers, individual nonadversarial procedure the builder cannot subsequently
product manufacturers, and design professionals.40 return to SB 800’s pre-litigation procedures of Chapter 4.
The builder’s decision is binding. Notification to the
SB 800 grants builders important protections which homebuyer must be given when the sales agreement is
weren’t in place before implementation of the statute. executed, no later.
The law gives the builder an absolute right to repair
problems that may arise in a home. By introducing
alternatives to litigation, SB 800 is aimed to reduce costs
and solve problems quickly. The statute limits the
41
California Civil Code §§900 - 907
42
California Civil Code §§896 - 897
36 43
California Civil Code §924 California Civil Code §903
37 44
California Civil Code §926 California Civil Code §903 - 904
38 45
California Civil Code §928 California Civil Code §§910 - 938
39 46
California Civil Code §911(a) Getting a Fix on the Right to Repair: Builders Must Be Careful When
40
California Civil Code §911(b) Altering SB 800’s Pre-Litigation Procedures, p.3
SB 800: Guide to Requirements and Response Strategies Page 4 of 9
5. Under SB 800 it’s mandatory the claimant follow the pre- Homeowner’s Options and Safeguards
litigation procedures set out in Chapter 4 before filing an
SB 800 grants homeowners important protections and
action.47 As mentioned earlier, lawsuits have greatly hurt
rights which weren’t in place before implementation of
builders and their insurance companies and thus their
the statute. The homeowner now has a defined set of
revenues. If the claimant does not adhere to the
quality standards which the home must adhere to. As
requirements of SB 800, the builder may bring a motion
mentioned above, the new statute sets mandatory
to stay any subsequent court action.48
alternatives to litigation, reducing costs and solving
problems quickly. By doing so the builder’s general
If the builder so chooses, instead of making an offer to
liability insurance has a lower monetary liability granting
repair, a cash only offer can be made. If the offer is
the owner higher return upon resolution, cutting out the
accepted, the builder may obtain a release from the
costs of lawyers and litigation. Finally, successors-in-
claimant. Having a release alleviates the builder from any
interest or non-original homeowners now have power to
further liability under the builder’s affirmative defenses.
resolve claims assuming action is initiated before the
The homeowner does have the ability to reject the offer
particular statute of limitation’s period has run.
and proceed with filing an action.49 A cash offer option
must be thought out carefully by the builder and his
The statute sets forth powerful protections to the claimant
representative. As noted above, failing to make the
during the pre-litigation procedures found in Chapter 4.
correct monetary offer could result in a costly litigation.
Giving the homeowner an established influence over the
repairs and dispute resolution, forces the builder to
In addition to commonly accepted maintenance practices,
provide satisfactory workmanship in a diligent manner.
the homeowner is responsible for following all reasonable
maintenance obligations and maintenance schedules
The homeowner may proceed with the filing of an action
issued by the builder and product manufacturers, which
if a builder fails to acknowledge receipt of notice for any
are required to be given to the homebuyer at time of
claim within the prescribed time, elects to not follow the
sale.50 The builder has an opportunity to submit a
pre-litigation process, fails to request inspections within
thorough yet reasonable list of maintenance guidelines to
the specified time, or fails to make an offer or otherwise
the homeowner upon which SB 800 mandates adherence
strictly comply within the guidelines set forth in Chapter
under the builder’s affirmative defenses.
4.52,53,54 The builder must also adhere to the allotted time
given to conduct inspections and testing. If the builder
SB 800 gives the builder seven “Affirmative Defenses”
fails to do so, the homeowner may proceed to formal
and states the builder may be excused, in whole or in part,
litigation.55
from any obligation, damage, loss, or liability if the
builder can demonstrate any of these defenses.
After the inspection(s), the builder has an option to offer a
1. Unforeseen act of nature.
repair for the violations. If repairs are the source of the
2. Homeowner’s unreasonable failure to minimize or
resolution, the homeowner is required to be notified of the
prevent damages including timely notice to the builder
right to request up to three additional contractors from
after the discovery of violation has been made.
which to select from to do the repairs.56 The goal of SB
3. Homeowner or agent failure to follow the builder’s or
800 is to give the owner the sole option and discretion of
manufacturer’s maintenance recommendations or
who will conduct the repairs. The option of having an
commonly accepted homeowner maintenance
alternate contractor perform the repairs is strongly
obligations
cautioned. SB 800 does not define which contractors
4. Homeowner or third party alterations, ordinary wear
insurance is liable for repairs made if alternate contractors
and tear, misuse, abuse or neglect, or use of structure
are performing the work. Ambiguity within the law could
for other than its intended purpose.
also shun an alternative contractor from wanting to get
5. The time period for filing actions bars the claimed
involved.
violation. i.e. The claim was issued after the statute of
limitations expired.
Upon completion of repairs, the statute gives the
6. The builder has obtained a valid release from the
homeowner the additional right to proceed with the filing
homeowner.
of an action for violation of the applicable standard and /
7. The builder’s repair was successful in correcting the
or to claim inadequate repair.57 If an alternative
particular violation of the applicable standard.
contractor was chosen for repairs, the statute does not
As to causes of action to which this statute does not apply,
define if original builder is liable in addition to the
all applicable affirmative defenses are preserved.51
52
47 California Civil Code §915
California Civil Code §910 53
48 California Civil Code §920
California Civil Code §930(b) 54
49 California Civil Code §930(a)
California Civil Code §929 55
50 California Civil Code §916(d)
California Civil Code §907 56
51
California Civil Code §945.5 California Civil Code §§917 - 918
57
California Civil Code §926
SB 800: Guide to Requirements and Response Strategies Page 5 of 9
6. alternative contractor which could potentially complicate
and draw out the resolution.
The homeowner has the option to call for mediation upon
being presented with the offer to repair if a dispute should
arise over the repair procedure. SB 800 gives the
homeowner the option to split the cost of the mediator
which would enable the mediator to be jointly chosen.58
If repair was chosen as the means to resolution and the
builder fails to complete all repairs within the time
specified in the repair plan, the claimant can file an
action.59 Many unforeseen factors can exist throughout
repairs. If the builder requests, it may behoove the
claimant to agree to extend the 120 day limitation due to
the fact that the repair timeline in place may be
logistically difficult for the builder to complete in a
quality-like manner.60
Finally, if subsequent claims of unmet standards are
discovered during the procedures of a current claim, the
newly found construction defects will be administered
separately unless agreed to otherwise. If the subsequently
discovered claim is for a violation with respect to a
standard which has already been initiated, the process
does not need to be reinitiated.61
Conclusion
Although some issues remain to be resolved with SB 800,
which will most likely be solved through future litigation,
the law contains several clear intentions. Homeowners
who have discovered construction defects must first
follow the claim procedures prescribed by SB 800 before
proceeding with a formal litigation. Builders can accept
and follow the regulations of SB 800, create their own
alternative resolution procedures which are hopefully
enforceable, or ignore SB 800 altogether possibly finding
themselves in a traditional lawsuit. Finally, if the builder
does choose to take advantage of SB 800, the builder
must follow it strictly.
The law gives important protections and rights to both the
builder and homeowner. Through strategical
consideration, the powers each party possesses should
prove to help resolve claims in a successful manner.
Hopefully the attributes of the new law will create a
catalyst to assist in a plateau of insurance costs for
contractors, while still allowing homeowners to have
access to affordable housing.
58
California Civil Code §919
59
California Civil Code §925
60
California Civil Code §930(a)
61
California Civil Code §932
SB 800: Guide to Requirements and Response Strategies Page 6 of 9
7. References:
Allen, Darin T. (2006), Construction Briefings: Construction Defects Litigation and The “Right to Cure” Revolution,
Thomson / West, No. 2006 – 03, retrieved September 14th, 2007. Website:
www.arb-forum.com/rcontrol/documents/ArticlesByFORUMStaff/200603AllenConstruction.pdf.
Dale, G., Carpenter, K., Cammarota, N., & Dellinger, K., CBIA: SB 800: The Homebuilder “FIX IT” Construction Dispute
Resolution Law – A Summary Compliance Guide for the California Homebuilding Industry, CBIA, 3rd Edition, retrieved
September 14th, 2007. Website: www.cbia.org/documents/member/SB%20800%20booklet%203rd%20ed.pdf.
Gerris, S., & Marks, D. (2003), Construction Defect Litigation: The Playing Field Has Changed. A Navigational Guide to
Senate Bill 800, CEB Real Property Law Reporter, 1 – 3, retrieved September 14th, 2007. Website:
www.thoits.com/resources/gfx/cdl.pdf.
Gruen, Jan A. (2007), Attached Housing: Its Unique Approach, retrieved September 14th, 2007. Website:
http://www.builderarchitectbayarea.com/articles/january_2007_attached_housing.php.
Jackson, B., Gotshall-Maxon, L., Matkins Leck Gamble, A., & Natsis, M (2003), Getting a Fix on the Right to Repair:
Builders Must Be Careful When Altering SB 800’s Pre-Litigation Procedures, Allen Matkins Leck Gamble Mallory &
Natsis LLP, retrieved September 14th, 2007. Website: http://library.findlaw.com/2003/Apr/14/132847.html.
Poulson, Wade W. (2006), Purchasers, Privies, and Predicaments: A Defect in California’s Construction Defect Law,
Thomas Jefferson Law Review, Vol. 28:277, retrieved September 14th, 2007. Website: www.tjeffersonlrev.org/28-
2/Poulson.pdf.
Sciaroni, R., & Melton, D. (2003), Design Professionals’ Practice Update – California Law: New Residential Construction
Defects Law, Long & Levit LLP, Issue No. 1, retrieved September 14 th, 2007. Website:
www.longlevit.com/updates/DPLUpdate/DPU1.pdf.
SB 800: Requirements For Actions For Construction Defects, United States Senate, Secretary of State Department, (2002).
SB 800: Guide to Requirements and Response Strategies Page 7 of 9
8. APPENDIX A
FUNCTIONALITY STANDARDS SUBJECT TO A STATUTE OF LIMITATIONS LESS THAN 10 YEARS
FUNCTION STATUTE OF LIMITATIONS SB 800 CODE SECTION
Deterioration of building surfaces 5 years from Close of Escrow 896(g)(10)
due to paint or stain (COE)
Plumbing and Sewer Systems 4 years from COE 896(e)
Electrical Systems 4 years from COE 896(f)
Cracks in exterior pathways, 4 years from COE 896(g)(1)
driveways, hardscape, sidewalls,
sidewalks, and patios
Unreasonable corrosion of 4 years from COE 896(g)(9)
untreated steel fences and adjacent
components
Decay of untreated wood posts 2 years from COE 896(g)(8)
Landscaping 2 years from COE 896(g)(12)
Dryer ducts 2 years from COE 896(g)(14)
Manufactured products: (including but 1 year unless manufacturer 896(g)(3)
not limited to windows, doors, roofs, specifies a greater period
plumbing products, and fixtures, fireplaces,
electrical fixtures, HVAC units, countertops,
cabinets, paint, appliances, and any other
product that is completely manufactured
offsite.)
Noise for attached units 1 year from original occupancy of 896(g)(6)
adjacent unit
Operation of irrigation & drainage 1 year from COE 896(g)(7)
systems
Fit and finish warranty 1 year 900
SB 800: Guide to Requirements and Response Strategies Page 8 of 9
9. APPENDIX B
SB 800 Timeline
SB 800: Guide to Requirements and Response Strategies Page 9 of 9