Presuit Provisions Will Be Enforced In Home Defect Row

Law360, Los Angeles (March 25, 2014, 4:26 PM EDT) -- In a suit launched against The McCaffrey Group Inc. by homeowners who alleged defective construction of their homes, a California  appeals court on Monday found provisions in the home-purchase contracts enforceable and overturned a lower court’s order rejecting compliance with nonadversarial prelitigation measures.

Before bringing construction defect claims to court, the clauses required homeowners to provide the builder with notice of the claimed defect, give the builder the right to inspect and correct it and, if still unsatisfied, engage in nonbinding mediation. But the homeowners filed...
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