Construction Law Breaking News: California Supreme Court Rules in Favor of Beacon Residential Community Association

On July 3, 2014, the California Supreme Court issued its opinion affirming the First District Court of Appeal in the case of Beacon Residential Community Association v. Skidmore, Owings & Merrill (Case No. S208173). The issue in the Beacon case is whether the architects of a residential project owe a duty to future third party homeowners under SB800 and common law. In 2011, Judge Richard Kramer of the San Francisco Superior Court sustained demurrers of Skidmore, Owings & Merrill and HKS Architects to the homeowners association complaint without leave to amend. The homeowners association appealed and the First District Court of Appeal reversed Judge Kramer, ruling that the homeowners could assert SB800 and common law claims against the architects of the project even in the absence of privity of contract. The California Supreme Court affirmed the Court of Appeal in full. Numerous amicus briefs were filed, including briefs from the Consumer Attorneys of California, the California Building Industry Association and the American Institute of Architects. A detailed analysis of the opinion will be posted later.

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July 3, 2014