The issue of implied warranty disclaimers

Procedural Posture

Plaintiff homebuyers, individually and as representatives of a class of purchasers of new homes, sued to recover repair or replacement costs for construction defects in homes built by defendant developer. The Superior Court of Los Angeles County, California, granted the developer's summary adjudication motion on the issue of implied warranty disclaimers. The homebuyers sought a writ of mandate compelling the trial court to vacate its order.

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Overview

The homebuyers represented a class of individuals who had bought homes from the developer that had allegedly defective concrete slabs. The homebuyers claimed that the use of a polypropylene fiber in the concrete slabs allowed cracks to develop during the curing process that were wider than a hairline, and the use of the fiber was a "a serious design and construction defect." The homebuyers amended their complaint for breach of implied warranty. The developer filed a summary adjudication motion on the implied warranty claim and argued that each of the homebuyers had waived the implied warranty as there was a implied warranty disclaimer in the sales contract. The appellate court affirmed the grant of summary adjudication on this cause of action. The appellate court found that the disclaimer was conspicuous as it was written with all capital letters and printed in bold type. Further, the homebuyers failed to demonstrate that the inclusion of the disclaimer was unconscionable as all homebuyers were given the opportunity to review the sales documents, and there was evidence that the developer would have negotiated that issue rather than lose a potential home sale.

Outcome

The petition for writ of mandate was denied. Each side was to bear its own costs in the proceeding.