Is My Drywall Chinese? - HB Litigation Conferences

Issues in California
Since 2002, Civil Code section 895 et seq. is
similar to Florida's section 558 regarding pre-suit pre suit
notice of construction defects. It requires that
homeowners notify builders of any alleged
construction defects, and the builder then has
obligations to, in a timely fashion:
– inspect the home,
– provide the homeowner with documentation, including
plans and specifications for the subject property,
– provide notice to potentially liable third parties such
as subcontractors, and
– offer to repair or mediate the dispute.
Issues in California (cont).
Effective January 1, 2009, Civil Code section 2782(d)
modifies the indemnity rights between builders and
subcontractors. Now, if a builder tenders to a
subcontractor/installer of Chinese drywall pursuant a
contract for indemnification, the installer has two
options:
– defend the case with counsel of its own choosing and maintain
control over the homeowner's claim against the builder; or
– pay a portion of the builder's costs that directly relate to
defendant against allegations pertaining to the installer's scope scope
of work.