Understanding Statutes of Limitations for Construction Claims in Your State
Construction projects are big undertakings, with the possibility of litigation risk. When something goes wrong, you may need to hold that party liable for their actions or inactions. But, you have to do so within specific time limits, called statutes of limitations. Other deadlines might also apply that are unique to the party you’re filing against or your own contractual agreements.
At Plumtree & Brunner, LLP, our California construction lawyers help you file cases timely and correctly. Let us get started and help enforce your rights.
Why Statutes of Limitations Matter in Construction Cases
A statute of limitations is a legal deadline for filing a lawsuit. In construction cases, these deadlines vary depending on:
- The type of claim
- If the case involves an oral or written contract
- If it is a tort claim
- Whether the claim involves latent (hidden) defects or patent (obvious) defects
- When the problem was discovered or should have been discovered
Many construction problems can show up months or years after a project is done. California law has special rules that can apply to defects you couldn’t reasonably see or know about. Knowing these rules is critical, and your attorney can help.
Contract-Based Construction Claims
Most construction contracts come out of contracts. These could be:
- Construction agreements
- Subcontractor agreements
- Change orders
- Design contracts
- Other legal agreements
California sets different deadlines depending on whether the contract is written or oral.
Written Contracts: Four-Year Statute of Limitations
Claims based on a written construction contract must generally be filed within four years from the date of breach. Common examples include:
- Failure to perform work as agreed
- Defective workmanship
- Failure to pay for completed work
- Violations of written change orders
Oral Contracts: Two-Year Statute of Limitations
If the agreement was not in writing, the deadline is shorter, two years from the date of breach. This often applies to informal agreements, handshake deals, or undocumented change orders.
Tort-Based Construction Claims
Some construction disputes involve negligence or property damage rather than breach of contract.
Property Damage: Three-Year Statute of Limitations
Damage to real property must usually be filed within three years of the date the damage is discovered. This might include:
- Water intrusion
- Structural failure
- Soil movement
Personal Injury: Two-Year Statute of Limitations
If a person was hurt because of a construction defect, that person usually has two years from the date of their injury to file their claim.
Patent vs. Latent Defects: Special Rules for Construction Defect Claims
California distinguishes between patent defects (obvious problems) and latent defects (hidden problems that are not reasonably discoverable).
Patent Defects: Four-Year Deadline
Patent defects must be brought within four years of substantial completion of the project. Examples include:
- Visible cracks
- Uneven flooring
- Improperly installed fixtures
If a reasonable inspection would reveal the defect, it is considered patent.
Latent Defects: Ten-Year Deadline
Latent defects have a much longer deadline. Under California’s “Right to Repair Act” and related statutes, claims must be filed within ten years of substantial completion. Latent defects include:
- Hidden plumbing leaks
- Improper waterproofing
- Structural issues concealed behind walls
- Foundation problems that develop over time
This ten-year period is known as the statute of repose, and it is absolute—once it expires, no lawsuit can be filed, even if the defect is discovered later.
When the Clock Starts: The Discovery Rule
For many construction claims, especially those involving latent defects, the statute of limitations begins when the problem is discovered or reasonably should have been discovered. This “discovery rule” prevents contractors or owners from being penalized for issues that were impossible to detect earlier.
However, the ten-year statute of repose for latent defects is not affected by the discovery rule.
File Your California Construction Claim in Time with a Qualified Attorney By Your Side
Legal disputes must be handled correctly to avoid issues. Filing late hurts your ability to enforce your contractual agreements or protect yourself from liability. Cases could be dismissed if filed too late, so it is important to be prompt.
Our team at Plumtree & Bruner, LLP helps you with your California construction law needs. Contact us today for a consultation.
