California law doesn't allow people to sue to prevent problems that might occur, the court asserted. The justices pointed out that homeowners already benefit from remedies available through builder warranties and contracts, which can cover periods ranging from one to 10 years. Alarmed foes of the decision hold that it leaves homeowners vulnerable to builders who put profits ahead of sound construction. In his dissent, Justice Stanley Mosk said he regretted the court did not create even a minimal safeguard for homeowners. According to Thomas Miller, a veteran construction-defect attorney in Southern California, one in two condominium developments reports major construction defects and a third of those are involved in litigation.
Builders strongly disagree.
They maintain that the quality of their homes is better than ever before. Because of the court's ruling, other builders are likely to resume condo construction, said Pattinson. Condominiums accounted for about 34 percent of the local home resale market in late 1989, according to DataQuick Information Systems. As single-family home prices declined, condos dropped to about 23 percent of resale market in 1994. Today, condos again account for about 34 percent of resales.