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Home > FAQ's > Construction Defects Law
Construction Defects - Frequently Asked QuestionsConstruction Defects - Frequently Asked Questions

SERVING THE RESIDENTS OF LONG BEACH CONSTRUCTION DEFECTS ATTORNEYS, ORANGE COUNTY CONSTRUCTION DEFECTS ATTORNEYS, AND THE GREATER LOS ANGELES COUNTY CONSTRUCTION DEFECTS ATTORNEYS


What types of damages or monies can be recovered in a construction defect lawsuit?

The types of damages that can be recovered in a construction defect lawsuit generally fall into one of four basic categories:

  • 1 Diminution in Value: This is calculated by determining the difference between the market value before and after the injury. Courts will generally award either cost of repair or diminution in value damages, whichever is less.

  • Cost of repairs: This is the most common measure of damage, the reasonable cost to repair or restore the property. Also recoverable are reasonable fees that have been paid to experts to evaluate the cause of the defects, as well as their cost in supervising the repairs, provided the case goes to trial and the property owner prevails. These recoverable experts’ costs are referred to as Stearman costs.

  • Cost of Repairs Allowed Where They Exceed Diminution: California laws have a special exception and will allow owners to recover repair costs even where repair costs exceed the diminution in value. For example, if there is a personal reason to repair the property, such as the property is a personal residence, the cost of repair is the appropriate measure of damages.

  • Other Damages: In addition to cost of repairs and diminution, other recoverable damages include court and litigation costs. Attorneys' fees, however, are only recoverable if there is an attorneys' fee provision in the real estate purchase agreement, the escrow instructions or sometimes in the Covenants, Conditions and Restrictions, or CC&R’s of an applicable homeowners’ association. If property is damaged to the extent that the owner is required to temporarily vacate the property while repairs take place, the cost of moving and storing personal property is recoverable.



 
    Additionally, temporary living arrangement expenses such as hotels and meal costs are recoverable damages. The owner also can sue to recover for the lost use and enjoyment of the property based on the cost of renting a substantially similar property. Personal injuries resulting from the defect may also be recoverable, and the courts have recently recognized the limited availability of emotional distress damages under certain circumstances. Other types of monetary damages are also recoverable at trial. Punitive damages (damages awarded for sake of example and to deter similar conduct in the future) may be awarded where the defendant has acted fraudulently toward the property owners in the construction and sale of its homes. This may occur where the defendant knew of certain defects at the time of construction or home sales yet made no disclosure or even concealed the problems from the prospective buyers. It may also occur where the builder should have either known of building code violations or disregarded building codes during construction which threaten the structure or safety of the inhabitants. Punitive damages can be very difficult to recover, however, because it is the burden of the property owner(s) to prove intentional conduct of misrepresentation or fraud (as opposed to negligent misconduct) on the part of the developer, builder or contractor.

We take into consideration the time sensitivity of construction cases and work towards a rapid solution, whether through Mediation, Arbitration, Litigation or Negotiation.

Call Smith and Garg today at 1.877.517.4275 or complete our contact form and let us assist you with your construction defects needs.