WILLHITE, J. —
In 2000, the California Supreme Court ruled in Aas v. Superior Court (2000) 24 Cal.4th 627 [101 Cal.Rptr.2d 718, 12 P.3d 1125] (Aas) that a homeowner could not recover on a negligence claim for construction defects unless the homeowner could show actual property damage or personal injury (as opposed to purely economic loss, such as diminution in value of the home or the cost to repair the defects). After Aas was decided, representatives from the building industries, insurance companies, and homeowners came together with members of the Legislature to devise a comprehensive statutory scheme to govern construction defect litigation. That statutory scheme, commonly known as the Right to Repair Act (the Act) was enacted in 2002. (Stats. 2002, ch. 722, p. 4247, principally codified at Civ. Code,
In the present case, we are asked to determine whether homeowners may bring a class action asserting a claim under the Act against the manufacturer of an allegedly defective plumbing fixture used in the construction of class members' homes. Based on our examination of the structure and language of the Act, as well as the legislative history, we conclude that class actions are not allowed under the Act except in one limited context: to assert claims that address solely the incorporation into a residence of a defective component, unless that component is a product that is completely manufactured offsite.
Because the claim in this case involves allegedly defective products that were completely manufactured offsite, we hold that the claim alleged under the Act cannot be litigated as a class action. Accordingly, we grant the writ petition filed by defendant Kohler Co. (Kohler), and issue a writ of mandate
Plaintiffs Joanna Park-Kim and Maria Cecilia Ramos are each owners of a residential condominium dwelling in which "Rite-Temp Pressure Balancing Valves" and "Mixer Caps" (which are contained in "Rite-Temp Valve assemblies") manufactured by Kohler were installed during construction. In the third amended complaint, plaintiffs allege that these valves and mixer caps, which are designed to regulate waterflow and temperature in household plumbing, do not operate as intended due to their defective design and manufacturing, and "are corroding, failing, and/or will inevitably fail," which has caused or will cause damage to other components of the household plumbing lines or fixtures.
Plaintiffs brought the instant lawsuit on behalf of themselves and all owners of residential dwellings in California in which these valves and mixer caps were installed during original construction, alleging a claim for violations of the Act, as well as claims for strict liability, warranty claims, and other claims.
After plaintiffs received numerous extensions of time, totaling 18 months, to file their motion for class certification, Kohler sought to resolve the case by filing a motion for summary judgment or adjudication on threshold legal issues. The trial court granted summary adjudication as to all claims except plaintiff Ramos's warranty and negligence claims, both plaintiffs' claims under the Act, and their UCL claim. Kohler then filed a "motion re anti-class-certification," seeking a ruling that none of the remaining causes of action can be certified as a class action.
On January 22, 2018, the trial court granted Kohler's motion as to the warranty, negligence, and UCL claims, but denied it as to the claim under the Act. The court also certified its ruling for appellate review, on the grounds that it presented a controlling question of law upon which there were
Kohler filed the instant petition for writ of mandate, asking this court to order the trial court to vacate its January 22, 2018 order to the extent it denies Kohler's anti-class-certification motion with respect to the claim under the Act and to issue a new order granting the motion in its entirety. We summarily denied the petition, and Kohler filed a petition for review in the Supreme Court. The Supreme Court granted review and transferred the matter back to this court with directions to vacate our order denying mandate and to issue an order directing the superior court to show cause why the relief sought should not be granted.
We issued the order to show cause as directed by the Supreme Court, and have received a return to the petition from plaintiffs and a traverse from Kohler.
In McMillin, the California Supreme Court was asked to determine whether the Act "was designed only to abrogate Aas[ and] supplement[] common law remedies with a statutory claim for purely economic loss," or whether it was intended "to go further and supplant the common law with new rules governing the method of recovery in actions alleging property damage." (McMillin, supra, 4 Cal.5th at p. 247.) In reaching its conclusion that the Legislature intended the broader displacement, and "made the Act the virtually exclusive remedy not just for economic loss but also for property damage arising from construction defects" (ibid.), the court analyzed the text, purpose, and legislative history of the Act. We conduct a similar analysis to resolve the issue before us: whether the Act permits homeowners to bring a class action against the manufacturer of a plumbing fixture that was installed
Because of the complexity of the Act and the interplay between many of the statutory provisions, we begin with an overview of the statutory scheme. As the Supreme Court observed, "the Act ... `comprehensively revises the law applicable to construction defect litigation for individual residential units' within its coverage."
Chapter 2 contains two sections, sections 896 and 897. Section 896 provides a detailed and comprehensive set of standards for residential construction, addressing water, structural, soil, fire protection, plumbing and sewer, and electrical systems issues, and issues regarding other areas of construction; it also provides various time periods within which an action must be brought, depending upon the standard alleged to have been violated.
Section 896 begins with a preamble that states in relevant part: "In any action seeking recovery of damages arising out of, or related to deficiencies in, the residential construction, ... a builder, and to the extent set forth in Chapter 4 (commencing with Section 910), a general contractor, subcontractor, material supplier, individual product manufacturer, or design professional, shall, except as specifically set forth in this title, be liable for, and the claimant's[
Chapter 4 sets out a detailed set of procedures that must be followed before a claimant may file litigation asserting claims under the Act. It begins with section 910, which provides, in relevant part: "Prior to filing an action against any party alleged to have contributed to a violation of the standards set forth in Chapter 2 (commencing with Section 896), the claimant shall initiate the following prelitigation procedures: [¶] (a) The claimant or his or her legal
The builder must acknowledge receipt of the notice (§ 913), and may elect to inspect the claimed violation of the standards and conduct testing
The various sections of chapter 4 set time limits for all of the acknowledgements, notices, offers, and repairs set forth in the chapter. If the builder fails to strictly and timely comply with the requirements, the claimant is released from the requirements of the chapter and may proceed with the filing of an action. (§§ 915, 916, subd. (c), 920, 925.)
If the procedures set forth in chapter 4 do not resolve the dispute between the parties, the claimant may file an action to enforce the other chapters of the Act. (§ 914, subd. (a).) If the builder has elected to repair the alleged violation of the standards, the claimant may, at the completion of the repair, file an action for violation of the applicable standards or for a claim of inadequate repair, or both, seeking all applicable damages available under the
In addition to the sections detailing the prelitigation procedures that must be followed, chapter 4 also includes provisions addressing various issues, including (as relevant to this action) claims that combine causes of action not covered by the Act with those that are covered (§ 931) and parties subject to application of the Act (§ 936).
Section 931, which we discuss in more detail in part B.1. of this opinion, post, provides that when a claim of construction defects combines causes of action or damages that are not covered by the Act with claims of "unmet standards" (i.e., violations of one or more of the § 896 standards and/or § 897) under the Act, the claims of unmet standards must be administered in accordance with the Act. Section 936 provides, as relevant to this case, that all of the provisions of the other chapters of the Act apply to general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals to the extent that those people or entities caused, in whole or in part, a violation of one of the standards as the result of a negligent act or omission or a breach of contract.
Chapter 5 sets forth the procedures for litigation under the Act. The chapter includes sections on the statute of limitation for such actions (§ 941), elements of a claim for violation of the chapter 2 standards (§ 942 [to establish a claim, the homeowner need only demonstrate that the home does not meet the applicable standard; "[n]o further showing of causation or damages is required to meet the burden of proof"]), and available affirmative defenses (§ 945.5).
The chapter also includes a section setting forth the exclusivity of, and exceptions to, the Act: "Except as provided in this title, no other cause of action for a claim covered by this title or for damages recoverable under Section 944 is allowed. In addition to the rights under this title, this title does not apply to any action by a claimant to enforce a contract or express contractual provision, or any action for fraud, personal injury, or violation of a statute." (§ 943, subd. (a).)
Finally, chapter 5 includes a section setting forth the damages recoverable under the Act: "If a claim for damages is made under this title, the
With this statutory scheme in mind, we turn to the question presented in this case: May a claim for violation of certain standards under the Act caused by an alleged defect in plumbing fixtures be brought against the manufacturer of the fixtures in a class action? To answer this question, we start with an examination of section 931, the only provision of the Act that mentions class actions.
Section 931 provides in full: "If a claim combines causes of action or damages not covered by this part, including, without limitation, personal injuries, class actions, other statutory remedies, or fraud-based claims, the claimed unmet standards shall be administered according to this part, although evidence of the property in its unrepaired condition may be introduced to support the respective elements of any such cause of action. As to any fraud-based claim, if the fact that the property has been repaired under this chapter is deemed admissible, the trier of fact shall be informed that the repair was not voluntarily accepted by the homeowner. As to any class action claims that address solely the incorporation of a defective component into a residence, the named and unnamed class members need not comply with this chapter."
One of the listed exclusions is "class actions." While this appears at first glance to be an unambiguous exclusion of class actions in the first sentence of section 931, ambiguity is introduced when the first sentence is read in conjunction with the last sentence: "As to any class action claims that address solely the incorporation of a defective component into a residence, the named and unnamed class members need not comply with this chapter [i.e., the prelitigation procedures]." This sentence seems to suggest that at least some class actions are allowed under the Act. So how do we reconcile these seemingly contradictory sentences in the same statute?
Plaintiffs contend that, despite the inclusion of class actions on the list of exclusions, the first sentence of the statute cannot be interpreted to exclude class actions asserting claims under the Act because a class action is neither a cause of action nor a form of damages; rather, "it is a procedural vehicle for enforcing substantive law." (Citing City of San Jose v. Superior Court (1974) 12 Cal.3d 447, 462 [115 Cal.Rptr. 797, 525 P.2d 701].) Thus, they argue that the inclusion of class actions in the list merely means that the Act does not cover causes of actions for personal injuries, fraud-based claims, or other statutory causes of action, or class actions asserting those causes of action. They contend the last sentence reinforces that interpretation because it demonstrates that the Act anticipates the use of class action procedures to bring claims under the Act and facilitates the use of the procedure by waiving the prelitigation requirements.
Kohler contends the sentences are not contradictory. It argues that the first sentence of the statute excludes all class actions for any claim under the Act, while the last sentence refers to class actions for claims that are outside of the Act. It reasons that because the language used in the last sentence is so similar to the language used in the exclusion set forth in section 896(g)(3)(E)
Moreover, plaintiffs' interpretation of the first sentence makes no sense. Had the Legislature intended the interpretation plaintiffs give the sentence, logically it would have placed "class actions" at the end of the items on the list of exclusions, rather than in the middle of the list, with language qualifying that "class actions" means only those actions asserting the previous items listed. And in any event, there would be no reason for the Legislature to specify that the Act does not cover class actions that assert claims that are not covered by the Act. If the claims themselves are not covered by the Act, any procedural devices normally available outside of the Act, such as class actions, necessarily are available with regard to those claims.
Kohler's interpretation of the first sentence of section 931 — i.e., that it excludes all class actions — also makes little sense because it conflicts with the last sentence of the statute. Although Kohler tries to reconcile the apparent conflict by arguing that the last sentence refers only to claims that are excluded from the Act under section 896(g)(3)(E), its interpretation of that sentence is flawed for two reasons.
Second, Kohler's interpretation of the last sentence of section 931 would render that sentence superfluous. Since the Act does not apply at all to claims based solely on a defect in a manufactured product, there is no reason for the Legislature to specify that chapter 4 of the Act does not apply to those excluded claims if they are brought as class actions.
The legislative history and purpose of the Act as a whole support our conclusion that the class action device may not be used to prosecute claims under the Act, with one very narrow exception.
When enacting the Act, the Legislature declared that "[t]he prompt and fair resolution of construction defect claims is in the interest of consumers, homeowners, and the builders of homes, and is vital to the state's continuing growth and vitality. However, under current procedures and standards, homeowners and builders alike are not afforded the opportunity for quick and fair resolution of claims. Both need clear standards and mechanisms for the prompt resolution of claims. [¶] ... It is the intent of the Legislature that this act improve the procedures for the administration of civil justice, including standards and procedures for early disposition of construction defects." (Stats. 2002, ch. 722, § 1, p. 4247.)
In its analysis of Senate Bill No. 800 (2001-2002 Reg. Sess.), which created the Act, the Senate Judiciary Committee observed that "[t]he bill seeks to respond to concerns expressed by a number of parties. The bill responds to concerns from homeowners and the Consumer Attorneys of California over the consequences of Aas[, supra,] 24 Cal.4th 627 [101 Cal.Rptr.2d 718, 12 P.3d 1125], which held that defects must cause actual damage or personal injury prior to being actionable in tort. The bill also responds to concerns expressed by builders, subcontractors, and insurers over the costs of construction defect litigation [and its] impact on housing costs in the state." (Sen. Judiciary Com., Analysis of Sen. Bill No. 800 (2001-2002 Reg. Sess.) as amended Aug. 28, 2002, pp. 3-4.)
The Senate Judiciary Committee analysis explained how the bill's establishment of standards and imposition of liability for violations of those standards would simplify the resolution of disputes over many construction defects. (Sen. Judiciary Com., Analysis of Sen. Bill No. 800 (2001-2002 Reg. Sess.) as amended Aug. 28, 2002, p. 4.) The analysis also explained the impact of the bill on builders and their affiliates: "The bill establishes a mandatory process prior to the filing of a construction defect action. The
That the Legislature considered the prelitigation process a critical component of the Act is demonstrated by the detail and scope of chapter 4. As our summary of that chapter shows, the Legislature left no doubt that the goal of this process was to have disputes resolved and repairs performed as quickly as possible, and, if possible, without litigation. It makes sense, then, that the Legislature intended to exclude class actions for virtually any claim under the Act, because class actions make prelitigation resolution impossible.
Having determined that section 931 excludes class actions, with a narrow exception created by the last sentence, we must determine whether the claim alleged in this case may be brought in a class action. We conclude it may not.
Let a peremptory writ of mandate issue directing respondent Superior Court of Los Angeles County to vacate its January 22, 2018 order to the extent it denied Kohler's anti-class-certification motion and to issue a new
Manella, P. J., and Collins, J., concurred.