2015 Legislation - AB 1152 - Limiting Construction Defect Lawsuits for HOAs

Bill Author: 
Limiting Construction Defect Lawsuites

Updated 7/6/15

What AB 1152 Says

Now a two-year bill, this legislation narrows the options for HOAs seeking recovery for construction defects. Recent case law allowed associations to recoup damages through sources and methods not outlined in Civil Code Section 896. This bill would establish Section 896 as the sole remedy for construction defect claims. ECHO opposes this bill. 

Full Summary of AB 1152

From the Legislative Counsel's Digest:

Existing law regulates actions seeking recovery on construction defects, as specified, on original construction intended to be sold as an individual dwelling purchased new after January 1, 2003. Existing law provides that general contractors, subcontractors, material suppliers, product manufacturers, and design professionals may be liable for damages for construction defects if they caused, or contributed to, the violation of a particular standard as the result of a breach of contract or through negligence. Existing law also establishes certain prelitigation procedures for both the homeowner and defendants to engage in to attempt to resolve the claim prior to filing a lawsuit for construction defects, and also establishes the parameters of a legal action seeking recovery for construction defects.
This bill would establish these provisions as the sole and exclusive remedy available for claims seeking recovery on construction defects, as specified.
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