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Builders hail ruling

Industry group says court decision will aid
affordable housing, pushes warranty idea

Wednesday, December 06, 2000

Inman News Features

The California Building Industry Association (CBIA) is calling a California Supreme Court ruling barring certain construction defect lawsuits a victory for affordable housing in the state.

In its 5-2 decision, the court said homebuyers can’t sue over building code violations when no damage or injuries have occurred. Lawsuits reportedly have been filed over such matters as discolored drain stoppers and crooked doors.

"In essence, the court said there is a better way than litigation to resolve construction disputes," said CBIA Senior Vice President Tim Coyle. "Consumers' rights can be protected without lawsuits and it's time to do what the Court has instructed, that is, enact an equitable means for resolving these disputes."

The CBIA favors a new homebuyers warranty along the lines of a plan proposed last year in the California Legislature that would have given home buyers a 10-year guarantee backed by an insurance policy on the structural and operational performance of a new home.

Coyle said a warranty would guarantee that real problems would be resolved while keeping costs for builders and homebuyers under control and that the legislation will be introduced in the Legislature again.