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Builder saved by bell in defects suit

Law of the Land

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In the case Gundogdu, et al. v. King Mai Inc., the homebuilder (King Mai) filed a notice of completion for a home and continued to own it for nearly a year and a half thereafter before selling it to the buyers (the Gundogdus). After about nine years of owning the property and finding numerous defects in its construction, the buyers sued King Mai. King Mai said the Gundogdus were barred from bringing suit by the 10-year statute of limitations on construction-defect litigation set forth in California Code of Civil Procedure section 337.15. The Gundogdus, however, argued that the 10-year statute of limitations didn't begin running at the time the notice of completion was filed, on grounds that King Mai "owned the subject property for almost a year and a half from the time the construction phase was complete." The trial court found that the statute of limitations barred the buyers' claims for damages. The appeal court agreed, and upheld the trial court's grant of s...