Calderon Process

1-877-cmsynergy/1-877-267-9637
Hyde Mulvihill APC Lawyers
216 W. Foothill Blvd (91016) PO Box 1007
Monrovia CA 91017
(626) 358-7471 Fax: (626) 358-2894

The Calderon Act, which requires dispute resolution before a Homeowners’ Association can file a complaint for construction defects, has been amended extensively. Amended California Civil Code §1375 applies only to new actions, not actions filed before July 1, 2002.

Provided Courtesy of The Law Offices of Cynthia Coulter Mulvihill, APC

Summary of Amended California Civil Code §1375:

Type of Property – Common interest development property, but only if it has 20 or more units.

Who Has to Start Proceedings - Associations that are claiming design or construction defects to a common interest development. Individual homeowners do not have to comply with this act.

Who the Association Notifies – Builder, developer and/or general contractors (called respondent or respondents). The general contractor can be served with notice of a claim for defects if the builder or developer is “not amenable” to service (CC §1375(b)).

How Notice is Given – By certified mail.

How Long the Statute of Limitations is on Hold (Tolled) – 180 days from service of the notice. After that, the Association, the entity or entities the association put on notice of the action, and any other participating parties that are not deemed peripheral may mutually agree to one more 180 period (CC §1375(c)). The Statute of Limitations (the time in which an action must be filed) is tolled as to "all applicable statutes of limitation and repose, whether contractual or statutory, by and against all potentially responsible parties, regardless of whether they were named in the notice, including claims for indemnity . . .

Dispute Facilitator Costs – Basically, 1/3 to the Association; 1/3 to the respondents; and 1/3 to design professional and subcontractors.

What the Case Management Statement Will Do – Establish a document depository; provide for a more detailed list of defects; set nonintrusive visual inspections; set a time for invasive testing; set a time for demands to parties; establish an expert exchange; establish a dispute resolution schedule.

You Can Petition to the Court for Certain Kinds of Relief During this Process – such as taking party depositions; resolving discovery disputes; resolving case management disputes; and for an order determing settlement to be in good faith.