Contracts
Jun. 7, 2013
Court OKs shaving latent defect limitations period when parties are sophisticated
Importantly, the case stands for the proposition that sophisticated contracting parties may allocate commercial risks, including when the statute of limitations clock may start to run. By Roger C. Haerr
Most people understand they have 10 years from completion of a project to bring claims for unknown or latent construction defects. CCP Section 337.15. Once the defect is discovered, the owner has four years to bring his or her claim. CCP Section 337.1. However, a recent California decision (Brisbane Lodging, L.P. v. Webcor Builders, Inc., 2013 DJDAR 7127 (June 3, 2013)) upheld an agreement negotiated between sophisticated parties which pr...
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