Source: http://www.lawlink.com/research/CaseLevel3/82291
Timestamp: 2019-04-21 16:35:21+00:00

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LUIS A. ACOSTA et al., Plaintiffs and Appellants, v. GLENFED DEVELOPMENT CORP. et al., Defendants and Respondents.
CELESTINO CHAIDEZ et al., Plaintiffs and Appellants, v. GLENFED DEVELOPMENT CORP. et al., Defendants, Cross-Complainants and Appellants; JENSEN PLASTERING, INC. et al., Cross-Defendants and Respondents.
CELESTINO CHAIDEZ et al., Plaintiffs and Appellants, v. GLENFED DEVELOPMENT CORP. et al., Defendants, Cross-Complainants and Appellants; LETNER ROOFING CO., INC. et al., Cross-Defendants and Respondents.
Law Offices of Freeman & Freeman and Lawrence P. Freeman for Plaintiffs and Appellants.
Kabateck & Garris, Brian S. Kabateck, Penny J. Manship; Law Offices of Ronald A. Hartmann and Ronald A. Hartmann for Consumer Attorneys of California as Amicus Curiae on behalf of Plaintiffs and Appellants.
Kasdan Simonds Riley & Vaughan, Barry C. Vaughan and Nikola J. Bates as Amicus Curiae on behalf of Plaintiffs and Appellants.
Ford, Walker, Haggerty & Behar, Shayne L. Wulterin, Maxine J. Lebowitz, Jeffrey S. Behar, Paul S. Cooley; Stephan, Oringher, Richman & Theodora, Harry W.R. Chamberlain II and Brian P. Barrow for Defendants, Cross-Complainants and Appellants Glenfed Development Corp. and Glenfed Development Ventures, Corp.
Cooper, White & Cooper, Kathleen F. Carpenter, Dee A. Ware; Luce, Forward, Hamilton & Scripps and Charles A. Bird for California Building Industry Association and Building Industry Legal Defense Foundation as Amici Curiae on behalf of Defendants, Cross-Complainants and Appellants.
Newmeyer & Dillion and Gregory L. Dillion for Centex Homes, William Lyon Homes, Inc., Standard Pacific Corp., KB Home, Fieldstone Communities, Inc. and 396 Investment Company as Amici Curiae on behalf of Defendants, Cross-Complainants and Appellants.
Fred J. Hiestand for Civil Justice Association of California as Amicus Curiae on behalf of Defendants, Cross-Complainants and Appellants.
Stanton, Kay & Watson and Lawrence H. Kay for Construction Employers Association as Amicus Curiae on behalf of Defendants, Cross-Complainants and Appellants.
Bohl, Cole & Wohlgemuth and Anthony B. Nixon for Cross-Defendant and Respondent Jensen Plastering, Inc.
Law Offices of Linda M. Libertucci, George W. Allen, Sarah Yoseloff; Horvitz & Levy, David M. Axelrad and Frank J. Menetrez for Cross-Defendants and Respondents Keller Plaster, Inc., Builders Showcase Interiors, Falconer Insulation & Drywall and Superior Plumbing, Inc.
Summers & Shives, Robert V. Closson, Kellene J. McMillan and Lisa G. Shemonsky for California Professional Association of Specialty Contractors as Amicus Curiae on behalf of Cross-Defendants and Respondents Keller Plaster, Inc., Builders Showcase Interiors, Falconer Insulation & Drywall and Superior Plumbing, Inc.
Law Offices of Lydia Bouzalgou-Newcomb and Craig A. Holtz for Cross-Defendants and Respondents Jensen Plastering, Golden State Drywall, Inc. and Simpson's Finish Carpentry.
In these consolidated appeals arising from a construction defect action, we are presented with issues relating to the application of Code of Civil Procedure, section 337.15. fn. 1 The plaintiffs seek reversal of a summary [128 Cal.App.4th 1285] judgment granted to a developer/general contractor on the ground that the plaintiffs had filed their complaints more than 10 years after the substantial completion of plaintiffs' homes. The trial court rejected plaintiffs' claim that the willful misconduct exception set out in subdivision (f) of section 337.15 precluded defendants' reliance on the 10-year limitation period. fn. 2 The court held that plaintiffs had failed to provide evidence that the alleged acts of willful misconduct had been committed directly by the defendants or under their supervision.
In granting defendants' motion for summary judgment, the trial court acknowledged that plaintiffs had presented evidence of latent structural defects in their homes. Plaintiffs' experts had opined that such defects (1) involved deviations from the building code and government-approved construction plans, (2) involved efforts to achieve cost savings, (3) appear to be the result of willful misconduct, and (4) could not be present in the houses absent either defendants' knowledge of them or defendants' reckless failure to inspect and supervise construction of the houses. Nonetheless, the court held that plaintiffs had not produced evidence that connected defendants to the actual construction of the homes in general, to the specific latent defects in particular, or to a failure to provide for supervision of construction.
Based on (1) the legal doctrine that subjects principals to liability for the wrongs of their agents committed in the course of the agency, (2) the principle, supported by both case and statutory law, that supervision of [128 Cal.App.4th 1286] construction is a nondelegable duty of developers and general contractors, (3) reasons of sound public policy and (4) the wording of the statute itself, we conclude that defendants may not successfully assert the 10-year limitations period set out in section 337.15 as a defense to this suit if the trier of fact determines that (1) there was willful misconduct involved in the construction of plaintiffs' homes, (2) such willful misconduct resulted in the alleged latent construction defects and (3) such willful misconduct was committed by the defendants or the facts and circumstances are such that the willful misconduct of others is appropriately chargeable to them. As we explain, we believe that plaintiffs have raised triable issues of fact on each of these points.
This construction defect action was initiated by a complaint filed on behalf of 59 plaintiffs. The majority of them appeal (No. B163118) from a summary judgment entered in favor of defendants Glenfed Development Corporation and Glenfed Development Ventures Corporation ("defendants"). fn. 4 Defendants, in turn, have filed appeals from the summary judgments granted to the subcontractors that were named as cross-defendants in defendants' cross-complaint for indemnification, breach of contract and warranties, and willful misconduct (Nos. B165374 and B169517). The subcontractors were granted summary judgment after the trial court determined that the defendants had no [128 Cal.App.4th 1287] liability to plaintiffs for damages for the alleged construction defects; fn. 5 in such circumstance, there was no basis to hold the subcontractors liable to defendants on the cross-complaint. Defendants appealed from those judgments as a precaution in case of a reversal of the judgment entered against plaintiffs.
Plaintiffs filed this action on December 30, 1999. Although it was originally filed as a class action, class certification was later denied and the class allegations were stricken by the court. The operative (fifth amended) complaint ("the complaint") alleges causes of action for strict liability, breach of express and implied warranties, negligence, and negligence per se. The focus of the complaint is defendants' development of plaintiffs' homes in a residential subdivision located in Palmdale, California. Defendants acted as both the developer and general contractor.
According to the complaint, defendants planned, developed, built, financed and/or sold plaintiffs' houses in or about 1989. The soil upon which the houses were constructed was improperly prepared, the concrete foundations of the homes were improperly prepared and constructed, and the damage to the respective houses has continuously existed since the date of construction. Structural framing in the houses was so negligently constructed as to constitute a defective and dangerous condition. As a result, substantial latent defects were created and caused to exist in the houses, and they continue to exist.
Plaintiffs alleged that the acts and omissions that caused such latent defects in their houses were the result of defendants' willful misconduct. Such deficiencies, which constitute the proximate cause of plaintiffs' damages, were not known by plaintiffs nor were they apparent by reasonable inspection; they were only determinable by expert analysis, including destructive testing. Defendants intended that the houses would be purchased by members of the public and used by them without inspection for latent defects; defendants knew or should have known that plaintiffs would rely on defendants' skill, judgment and expertise to see to it that the houses were reasonably [128 Cal.App.4th 1288] fit for their intended purpose and free of such defects; and defendants made such implied warranties about the houses. The failure of defendants to conform to their express warranties was known to defendants or should have been known to them because it was reasonably discoverable by defendants at the time the houses were constructed and sold to plaintiffs. To remedy and correct such defects will require extensive repair and replacement.
As a starting date for calculating the running of each plaintiff's 10-year limitation period, defendants used the respective dates of recordation of notices of completion for the plaintiffs' homes. (? 337.15, subd. (g)(2).) According to defendants, the result of their calculations was that 47 of the 59 named plaintiffs were brought into the case (either by the original complaint or by subsequent amended complaints) more than 10 years after the limitation period commenced running as to their own particular house, and therefore their suits are barred by section 337.15.
Plaintiffs' opposition to defendants' motion was based on declarations from two experts who have worked on numerous construction defect cases, Tariq Shamma and Scott Vivian. After setting out their extensive experience in their respective fields, fn. 7 the experts addressed latent construction defects in plaintiffs' houses that had been uncovered by destructive testing. The experts opined that most of the defects undermined the structural integrity of the homes and created a substantial risk of injury to persons and/or property.
The following is a sampling of the structural defects described by plaintiffs' experts: (1) horizontal attachments for vertical truss support members were not made in the garages, which created a risk of injury when a homeowner used the rafters for storage; this defect was readily visible to the expert eye and should have been recognized by defendants' construction supervisors; (2) the structural integrity of the houses was severely undermined by a failure to effect shear transfer; shear transfer allows buildings to [128 Cal.App.4th 1289] withstand horizontal stresses such as are caused by wind and earthquakes; (3) there were inadequate or nonexistent holdowns on shear walls in the houses; the holdowns secure shear transfer members to structural members, and their absence means the structural integrity of the houses is severely undermined; (4) there "[was] a consistent pattern of inadequate or non-existent installation of straps and hangers on load bearing members[; the] purpose of the straps and hangers was to secure load bearing members to each other[; t]he failure to properly install straps and hangers called for in the plans, and indeed, where any competent builder knows they are vitally necessary, severely [undermined] the structural integrity of the house"; (5) some driveways are short by as much as three and one-half feet, making it impossible to park a full size vehicle in the driveway without blocking the sidewalk; (6) there were defects in the stucco; (7) ninety-nine per cent of the windows tested were not watertight and unreasonably leak; this condition was the result of a failure to use appropriate flashing; and (8) there was a failure to use self-adhering asphalt polyethylene sheeting around the windows, which was called for in the plans approved by the city; instead, less expensive sisal kraft paper was used.
Plaintiffs' experts opined that the defects: (1) involved conspicuous failures to comply with applicable building code provisions, with the city-approved building plans, and with basic construction industry practices; (2) were of a type that inevitably would have been recognized by any competent construction supervisor conducting even minimal day-to-day inspections of the type required in a construction project such as the one involved here, and would have caused the construction supervisor to require the responsible subcontractors to remedy the defects immediately, before work could proceed on the houses; and (3) had the financial impact of producing, in defendants' favor, substantial cost savings.
The initial question we must address is whether, when a defendant moves for summary judgment on the basis of section 337.15's statute of limitations, and the plaintiff's complaint has alleged willful misconduct in connection with latent construction defects, it is the defendant or the plaintiff who has the burden of producing evidence on that issue. The second and primary issue presented is whether a finding that willful misconduct by somebody has occurred in connection with the construction of a plaintiff's home, when such construction results in latent defects in the home, is sufficient to preclude a developer and general contractor's reliance on section 337.15, even in the absence of evidence that the developer and general contractor had actual knowledge of the willful misconduct or had itself directly engaged in such willful misconduct in some manner.
 We conduct a de novo review of the order granting the respective motions for summary judgment. (Price v. Wells Fargo Bank (1989) 213 Cal.App.3d 465, 474.) In doing so, we apply the same rules the trial court was required to apply in deciding those motions.
 A defendant moving for summary judgment based on an affirmative defense must present evidence that supports each element of its affirmative [128 Cal.App.4th 1293] defense, which would also be its burden at trial. (Anderson v. Metalclad Insulation Corp. (1999) 72 Cal.App.4th 284, 289.) Here, defendants' affirmative defense was section 337.15's 10-year statute of limitations for latent construction defects, which defendants' separate statement of undisputed material facts sought to address by setting forth the date that the notice of completion for each plaintiff's home was recorded, and the date the respective homeowner was named as a plaintiff in this suit. On appeal, plaintiffs argue that defendants had the additional burden of producing evidence regarding the statutory prohibition against applying the 10-year statute in suits based on willful misconduct. (? 337.15, subd. (f).) We disagree. With respect to the exception, plaintiffs, not defendants, had the burden of production, specifically, the burden of producing sufficient evidence to raise a triable issue of material fact as to whether their action was based on willful misconduct.
 While subdivision (a) of section 337.15 provides a defendant with a 10-year statute of limitations affirmative defense, subdivision (f) of that statute precludes a court from applying such limitation period in the defendant's favor where the action is based on willful misconduct. Willful misconduct is an exception to the 10-year limitation period, and plaintiffs would bear the burden of production and persuasion at trial regarding the issue of willful misconduct since it is they who are asserting the exception. (Cf. Hobart v. Hobart Estate Co. (1945) 26 Cal.2d 412, 437.) That plaintiffs may have anticipated defendants' reliance on a limitations defense by alleging facts supporting a statutory exception to that defense is not sufficient to justify shifting the burden that otherwise would be imposed on plaintiffs.
3. The Nature of "Willful Misconduct"
As defendants and amici supporting their position emphasize, section 337.15 was enacted in 1971 by the Legislature to provide a "firm and final" outside limitation period for construction suits involving claims for latent defects. (Lantzy, supra, 31 Cal.4th at p. 377.) " ' [T]he purpose of section 337.15 is to protect contractors and other professionals and tradespeople in the construction industry from perpetual exposure to liability for their work. [Citations.] The statute reflects a legitimate concern that "expanding concepts of liability could imperil the construction industry unless a statute of limitations was enacted." [Citation.] Such concerns legitimately include the prohibitive cost of insurance against a perpetual and never ending risk' [Citation.]" (Id., at p. 374.) fn. 11 The Legislature, however, included an exception to this "firm and final" outside limitation period. In subdivision (f) of section 337.15, any action based on either willful misconduct or fraudulent concealment was expressly excluded. The issues before us involve the former.
The trial court acknowledged the depth of the information in plaintiffs' experts' declarations regarding the presence of serious latent structural defects in plaintiffs' houses that undermine the structural integrity of the homes and create a substantial risk of injury to persons and/or property. However, the court found there was no evidence "to explain [defendants'] connection to the construction of [plaintiffs'] homes in general, or . . . the specific defects in particular."
The court ruled that plaintiffs had failed to specifically connect defendants with the willful misconduct that plaintiffs' experts opined took place during construction. That is, plaintiffs failed to show that either (1) defendants themselves engaged in the actual construction or supervision of construction of the homes such that defendants had to have observed the defects but chose to ignore them, or (2) defendants were responsible for supervision of [128 Cal.App.4th 1297] construction, but failed to carry out their supervisory duties. Based on such lack of evidence, the court stated that a trier of fact could not infer willful misconduct by defendants in connection with the defects. On that basis, the court concluded plaintiffs' claims against defendants were, as a matter of law, barred by the 10-year statute of limitations set out in section 337.15. In our view, the record in this case, and a proper construction and application of the statute, compel a contrary conclusion.
The record before us demonstrates that the defendants, acting in their capacity as general contractor and developer, hired subcontractors to construct the homes purchased by the plaintiffs. Defendants essentially argue that whatever willful misconduct may have occurred in the construction process was done by such subcontractors and there was no evidence produced by plaintiffs demonstrating that defendants had any knowledge of or participation therein. This argument, however, fails to recognize the legal significance of the position occupied by a general contractor/developer in a residential construction project such as we find in this case.
The obvious reason for this rule is that owners and general contractors have supervision over the construction, including the work of the subcontractors. "It has been held that the owner of property cannot escape liability for a dangerous condition on his property by having an independent contractor assume the duty of constructing or repairing a building or chattel. [Citations.] There is no reasonable distinction between the owner's inability to escape liability and that of the contractor. The contractor, equally with the owner of the property, has supervision over the entire building and its construction, including the work performed by a subcontractor, and where he negligently creates a condition, either by himself or through a subcontractor, he is primarily responsible for that condition and the consequences that may follow from it. He is in full control of the construction and knows or should know what is being placed in the building." (Dow v. Holly Manufacturing Co. (1958) 49 Cal.2d 720, 725; accord Muth v. Urricelqui, supra, "251 Cal.App.2d at p. 907.) Such supervisory obligation is a non-delegable duty and cannot be avoided by entrusting it to an independent contractor. (Cf. Finnegan v. Royal Realty Co. (1950) 35 Cal.2d 409, 433.) This conclusion is supported by relevant statutory law.
The licensing law has as its purpose to protect the public from incompetent and dishonest construction and building services, such that the law " 'provide[s] minimal assurance that all persons offering such services in California have the requisite skill and character, understand applicable local laws and codes, and know the rudiments of administering a contracting business.' " (Ranchwood Communities Limited Partnership v. Jim Beat Construction Co., supra, 49 Cal.App.4th at p. 1409.) Thus, the Contractors' State License Board requires an applicant for a license to "show such degree of knowledge and experience in the classification applied for, and such general knowledge of the building, safety, health, and lien laws of the state and of the administrative principles of the contracting business as the board deems necessary for the safety and protection of the public." (Bus. & Prof. Code, ? 7068, subd. (a).) Additionally, disciplinary action against a license may be taken for, among other things, a "willful departure in any material respect from accepted trade standards for good and workmanlike construction" (Bus. & Prof. Code, ? 7109, subd. (a)), and for "[w]illful or deliberate disregard and violation of the building laws of the state, or of any political subdivision thereof" (Bus. & Prof. Code, ? 7110).
 As already mentioned, developers of mass produced homes are strictly liable for construction defects regardless of the developer's active fault. (Kriegler v Eichler Homes, Inc., supra, "269 Cal.App.2d at pp. 227-229.) The developer is thus held to be, as a matter of law, the absolute guarantor of the work done by the subcontractors it chooses. There is no sound public policy reason to deviate from this well-established principle when the question is extending the statute of limitations applicable to those defects as opposed to imposing monetary liability for the defects. In both instances, it is the developer " 'who is in the better economic position to bear the loss rather than . . . the injured party who justifiably relied on the developer's skill and implied representation.' " (Id. at p. 228.) To hold that the developer is not subject to the provisions of ? 337.15, subdivision (f), because the willful misconduct was committed by its chosen subcontractors would allow the developer to escape the strict liability established by Kriegler.
 Subdivision (f) of section 337.15 is an incentive to developers and general contractors to engage in close supervision of their projects so that willful misconduct can be avoided even if simple negligent construction defects cannot. It is an incentive for the general contractor and the developer to choose subcontractors carefully, with an eye toward quality construction rather than just the bottom line. Indeed, at the legislative hearings on the enactment of section 337.15, the representative from the North Coast Builders Exchange, the Builders Exchange Legislative Counsel and the California State Builders Exchange testified he was of the opinion that willful violations in the construction industry were "a very minor thing" and this was because "it's been economically weeded out," there is a reduced number of licensed contractors in California, the industry was policing itself, and the licensing board was "quite effective."
Moreover, as a matter of public policy, when a developer or general contractor receives the economic benefits of the willful misconduct associated with the construction of an improvement to real property, then as between the innocent third party purchaser of the improvement and the developer or general contractor, the purchaser should not be required to bear the burdens associated with such misconduct. Nothing in section 337.15 suggests otherwise. We note, with emphasis, that subdivision (f) states only that the 10-year limitation period "shall not apply to actions based on willful misconduct or fraudulent concealment" (italics added), and this case is clearly based on plaintiffs' allegations of willful misconduct by either defendants or parties hired by defendants to construct defendants' residential building project. Given that statutory language, it is only necessary that the action be based on and arise from willful misconduct by someone. It does not matter whether defendants committed such misconduct directly or it was done by subcontractors hired by them.
 We have no trouble concluding that a defendant, acting as the developer and general contractor, can be held liable after 10 years for the willful misconduct of others involved in the project, because: (1) subdivision (f) of section 337.15 does not specifically exclude a general contractor or a developer; (2) the rules regarding vicarious liability of principals are an [128 Cal.App.4th 1302] overlay on this action; (3) case and statutory law include supervisory requirements for developers and contractors, and the RMOs and RMEs of licensed contractors; (4) public policy considerations fully support such conclusion; and, perhaps most significantly, (5) subdivision (f), by its terms, applies to an "action;" it is not limited to the conduct of the specific defendant seeking to assert a limitations defense. The result we reach is not a judicially created extension or expansion of liability, it merely represents an application of the relevant body of law to an express statutory exception to the "firm and final" 10-year limitation on a contractor's liability exposure for latent defects. Nothing in the language of section 337.15 indicates the Legislature intended to dispense with the doctrines of vicarious liability and nondelegable duties, nor with the statutory responsibilities of contractors for supervision of their work, when a defendant developer or general contractor claims a right to the 10-year limitation provision and the plaintiff asserts the willful misconduct exception to application of that provision.
There is evidence in this record, if believed by a trier of fact, that would support findings that (1) willful misconduct had occurred in the construction of plaintiffs' homes and that such misconduct had caused the construction defects of which plaintiffs complain and (2) defendants, as the developer/general contractor for the project where plaintiffs' homes were constructed, (a) had at least constructive knowledge of the peril created by the construction activity and the resulting defects, (b) had at least constructive knowledge that injury or damage to future homebuyers (such as plaintiffs) was a probable, as opposed to a possible, result of the defects created by the construction activity and (c) consciously failed to take action to avoid such injury or damage. Under the principles articulated in Calvillo-Silva, supra, 19 Cal.4th at pp. 729-730, such findings would support the conclusion that willful misconduct had occurred in the construction of plaintiffs' homes and had caused plaintiffs' damages and that defendants were liable therefore.
It is clear to this court, from our review of the appellate record, that the trial court's sole basis for granting the subcontractors' motions for summary judgment on defendants' cross-complaint was the court's decision to grant defendants' motion for summary judgment on plaintiffs' complaint. That is, the trial court determined that because section 377.15 precluded the appealing plaintiffs from asserting liability against defendants, defendants in turn had no basis for claiming a right to relief from the subcontractor cross-defendants, and therefore the subcontractors were entitled to summary judgment on defendants' cross-complaint. Defendants' appeal from the summary judgments granted to the subcontractor cross-defendants, which defendants filed in their capacity as cross-complainants, was only a protective appeal. It was filed to preserve defendants' ability to further prosecute their cross-complaint against the subcontractors in the event we reverse the summary judgment granted to defendants. Because we have determined that defendants were not entitled to summary judgment against the plaintiffs, it necessarily follows that the trial court's granting of summary judgments to the cross-defendants must also fall.
The summary judgment granted on plaintiffs' complaint in No. B163118 and the summary judgments granted on defendants' cross-complaint in Nos. B165374 and B169517 are reversed and the cause is remanded for further proceedings consistent with the views expressed herein. Costs on appeal to plaintiffs. All other parties shall bear their own appellate costs.
Klein, P. J., and Kitching, J., concurred.
?FN 1. Unless otherwise indicated, all statutory references are to the Code of Civil Procedure.
"(b) As used in this section, 'latent deficiency' means a deficiency which is not apparent by reasonable inspection.
"(c) As used in this section, 'action' includes an action for indemnity brought against a person arising out of that person's performance or furnishing of services or materials referred to in this section, except that a cross-complaint for indemnity may be filed pursuant to subdivision (b) of Section 428.10 in an action which has been brought within the time period set forth in subdivision (a) of this section.
"(d) Nothing in this section shall be construed as extending the period prescribed by the laws of this state for bringing any action.
"(e) The limitation prescribed by this section shall not be asserted by way of defense by any person in actual possession or the control, as owner, tenant or otherwise, of such an improvement, at the time any deficiency in the improvement constitutes the proximate cause for which it is proposed to bring an action.
"(f) This section shall not apply to actions based on willful misconduct or fraudulent concealment.
"(1) The date of final inspection by the applicable public agency.
"(2) The date of recordation of a valid notice of completion.
"(3) The date of use or occupation of the improvement.
"(4) One year after termination or cessation of work on the improvement.
?FN 2. Defendants contend this case is not really an action based on their alleged willful misconduct, and instead argue that the plaintiffs only pled willful misconduct as a means of avoiding the 10-year statute of limitations. Therefore, defendants' urge, plaintiffs have no grounds for relying on the exception set out in subdivision (f). Defendants also assert that subdivision (f) was not even placed in issue because it is subdivision (e) not subdivision (f) that is mentioned in the operative complaint. We reject these arguments. The record reflects that (1) defendants' willful misconduct is alleged in the operative complaint, (2) a considerable amount of time and energy was devoted in and by the trial court to the issue of alleged willful misconduct, and (3) plaintiffs' experts testified as to a substantial number of very serious defects that, in their opinion, could only have resulted from willful misconduct by someone. Thus, it cannot reasonably be denied that plaintiffs' alleged claims include the charge that willful misconduct was involved in the construction of plaintiffs' houses.
?FN 3. Additionally, we necessarily must resolve one other matter. We must reverse the summary judgments granted to some of the subcontractors who were sued as cross-defendants on defendants' cross-complaint for indemnity and other causes of action. Those judgments were only granted by the trial court because it had determined that since defendants were not liable to plaintiffs, the subcontractors, in turn, would have no liability to indemnify defendants.
?FN 4. Apparently, defendants concede that the complaints of 12 of the plaintiffs were timely filed. Thus, they are not involved in the appeal. Our use of the term "plaintiffs" refers only to those plaintiffs who have appealed from the trial court judgment.
?FN 5. The trial court's minute order granting summary judgment in favor of the subcontractors on defendants' cross-complaint referred to the grant of summary judgment in favor of defendants as to 47 of the plaintiffs and then stated, "[T]hat ruling also entitles the subcontractors to summary judgment against Glenfed on the Cross-Complaint insofar as it seeks relief for Glenfed's possible liability to those 47 plaintiffs." (Italics added.) The trial court appears to have recognized that its grant of relief to the subcontractors applied to less than all of the indemnity claims asserted by the defendants in their cross-complaint. Thus, it should have characterized the order as one for summary adjudication since all of the issues between defendants and the subcontractors were not thereby resolved. Such misnomer, however, is of no consequence in light of the result that we reach.
?FN 6. Because the summary judgment/summary adjudication of issues motions brought by the subcontractor cross-defendants raise essentially the same statute of limitations issue raised by defendants in their motion papers, we will focus our discussion on the motion of the defendants.
?FN 7. Tariq Shamma's experience is in civil and structural engineering and general contracting; Scott Vivian's experience is in general contracting and as CEO of a company that provides construction experts who examine structures to determine the extent, causes, and needed repairs of defects, if any.
?FN 8. After the trial court took defendants' motion for summary judgment under submission, twenty of the plaintiffs filed an ex parte application for permission to file supplemental opposition. Such application was brought under section 473. The gist of the supplemental opposition was that the running of the 10-year statute of limitations was tolled when this suit was filed because it originally was filed as a class action, and the tolling period did not end until the class allegations were stricken by the trial court. According to these twenty plaintiffs, the effect of the tolling is that their suits were timely filed when they were added as plaintiffs, and thus their claims against defendants are not barred by the statute of limitations, even if it is determined that defendants have a right to assert the 10-year limitation period as a bar to the other plaintiffs' causes of action. The court denied the request to file supplemental opposition. Plaintiffs' subsequent motion for reconsideration was also denied. As we explain in footnote 19, post, we do not need to reach this issue.
?FN 10. All three appeals have been consolidated for resolution in a single opinion.
?FN 13. We cite the Felberg decision because of the similarity of its factual context to that of the case before us and to illustrate the dearth of authority on the issues presented. We take the Felberg court's reference to "negligence" as an inadvertent choice of words, given that Felberg cited to Ewing v. Cloverleaf Bowl, supra, 20 Cal.3d at p. 402. As the Supreme Court, in both Ewing and Calvillo-Silva (19 Cal.4th at pp. 729-730), pointed out, more is required. We in no way rely upon this statement by the Felberg court, but rather apply the principles set out in Ewing and Calvillo-Silva.
In this case, there is no contention that plaintiffs' homes were not mass produced; and plaintiffs have alleged theories of recovery that include negligence and breach of warranty as well as strict liability. The focus of defendants' motion for summary judgment was whether they are entitled to rely on the 10-year statute of limitations, not whether they would otherwise be liable to plaintiffs for any latent construction defects in plaintiffs' homes but for the expiration of such limitations period.
?FN 16. Civil Code, section 2332 provides: "As against a principal, both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other."
In relying on those cases, defendants are comparing apples with oranges. The instant case involves allegations of willful misconduct, perhaps by a subcontractor, that impacts innocent third persons who have no contractual relationship with the subcontractors. There would be nothing inequitable about holding defendants liable for the acts of their subcontractors who, in turn, would be answerable to the defendants' cross-complaint.
?FN 19. We have not reached or resolved the class action/tolling issue raised by twenty of the plaintiffs who argue that, because of such tolling, their complaints were timely filed. In light of our reversal of the defendants' summary judgment and the remand for further proceedings, the question is premature. In the event that the trial court, upon remand, finds no factual support for plaintiffs' claim of willful misconduct, then the tolling claims should be addressed as to those plaintiffs asserting them.
?FN 20. Cross-defendants Golden State Drywall, Inc. and Simpson's Finish Carpentry have filed a respondent's brief in the appeals taken by defendants/cross-complainants. However, it is not clear why they have done so since the judgments from which the appeals were taken do not include these two cross-defendants.
?FN 21. Cross-defendants Keller Plaster, Inc. and Falconer Brothers, Inc., dba Falconer Insulation and Drywall, contend that we should dismiss defendants/cross-complainants' appeal as to them on the ground that the summary judgment entered in their favor was mistakenly entered because their motions "did not dispose of all issues with [defendants/cross-complainants]." However, they do not assert that the judgment should be reversed. Quite the contrary; they contend the judgment "should stand." It hardly bears stating that their position is logically untenable and patently unfair.
Similarly, cross-defendants Letner Roofing Company, Inc. and Vineyard Roofing, Inc. assert that (1) they only moved for summary adjudication, (2) the order granting their motion for summary adjudication is not an appealable order, and therefore (3) defendants'/cross-complainants' appeal should be dismissed. Their argument ignores the fact that a judgment was entered in their favor on October 24, 2003. Later in their brief however, they assert "the judgment should stand." The apparent upshot of this latter statement is that the appeal should be dismissed and the judgment in their favor "should stand," again, an untenable and unfair position.
Obviously, however, any cross-defendants not shown to have been implicated in any acts of willful misconduct would have a meritorious argument for a judgment in their favor under section 337.15.

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