ORANGE COUNTY, Calif., Nov. 1, 2016 /PRNewswire/ -- The Waterfront Community Association filed an appeal with the 4 th District Court of Appeals, Orange County, from a superior court judge's decision stopping the Owners Association from pursuing claims against well known developer Christopher Homes for construction defects and building standard violations.
The Waterfront is a beautiful residential community located in Huntington Beach that, like many Associations, faced the difficult but necessary decision to present construction defect claims to their builders under the Right to Repair Law found in SB 800 ( CaliforniaCivil Code Section 896). Located at the intersection of Pacific View Avenue and Twin Dolphin Drive, the community is a combination of 184 townhomes built by the large national builder Christopher Homes, and condominiums built by William Lyon. Numerous Limited Liability Companies ("LLCs") were formed as the sellers and declarants of the CC&Rs and sales thrived between 2003 and 2006. The Association's defects were identified in 2015 by independent forensic experts in both the townhomes and the condominiums, and an SB 800 Notice was presented by the Association to both Builders. At the time of serving the Builders, some of the units were past the 10-year statute of limitations. California law requires that Associations present defect claims within 10 years from the date of substantial completion ( CaliforniaCivil Code Section 941) or until the builder "…relinquishes control over the Association's ability to decide whether to initiate a claim" ( CaliforniaCivil Code Section 895 (c)). A full audit of the Association's minutes and records determined that the Builders held 3 seats on the 5-member Board of Directors between June of 2003 through August of 2005. The Court did not disagree that the Association was under Builder control, which would have stopped the statute from running, but one of the Builders filed a motion to stop the Association's claims for exceeding the 10-year time limit and the local Superior Court judge agreed with the Builder. Based on this ruling, The Waterfront Community Association filed the appeal.