California Supreme Court Confirms California’s Right to Repair Act (SB800) is the Exclusive Remedy for Claims Alleging Property Damage from Construction Defects, Reversing Prior Case Law

The California Supreme Court’s decision in Aas v. Superior Court 24 Cal.4th 627 (2000) held that the economic loss rule barred homeowner construction defect claims that were limited to solely economic losses. In response, in 2002 the California legislature passed SB800, commonly known as the Right to Repair Act (the “Act”), which comprehensively reformed California construction defect litigation. The Act requires homeowners to participate in a comprehensive pre-litigation dispute resolution process which affords builders an opportunity to cure alleged defects prior to a lawsuit being filed.

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