The California Civil Code specifies various pre-litigation requirements that an association must satisfy before it may file a civil action (i.e., a lawsuit) against the association’s declarant (its developer) for construction defects. (See “Calderon Process.”) In addition to those requirements, Civil Code Section 6150 requires an association to provide its members with written notice that a construction defect action is being contemplated against the developer for alleged damage to: (1) the common areas; (2) the separate interests that the association is required to maintain or repair; or (3) the separate interests that arise out of, or are integrally related to, damage to the common areas or separate interests that the association is required to maintain or repair. (Civ. Code § 6150(a).)
Timing of Member Notice
The notice must generally be provided at least thirty (30) days prior to the filing of any construction defect action by the association against the developer. (Civ. Code § 6150(a).)
Statute of Limitations Issues – If an association believes that the applicable statute of limitations will expire before the association files the construction defect action, the notice may be given within thirty (30) days after filing the action. (Civ. Code § 6150(b).)
Contents of Member Notice
The notice must specify: (1) that a meeting will take place to discuss problems that may lead to the filing of a construction defect action (i.e., a civil action); (2) the options, including the civil action, that are available to remedy the problem; and (3) the time/place of the meeting to discuss the matters referenced above. (Civ. Code § 6150(a).)
