Park Avenue Condominium Owners Ass'n v. Buchan Developments, LLC

71 P.3d 692
CourtCourt of Appeals of Washington
DecidedJune 30, 2003
Docket49213-6-I
StatusPublished
Cited by21 cases

This text of 71 P.3d 692 (Park Avenue Condominium Owners Ass'n v. Buchan Developments, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Park Avenue Condominium Owners Ass'n v. Buchan Developments, LLC, 71 P.3d 692 (Wash. Ct. App. 2003).

Opinion

71 P.3d 692 (2003)
117 Wash.App. 369

PARK AVENUE CONDOMINIUM OWNERS ASSOCIATION, Respondent/Cross-Appellant,
v.
BUCHAN DEVELOPMENTS, L.L.C., Appellant/Cross-Respondent.

No. 49213-6-I.

Court of Appeals of Washington, Division 1.

June 30, 2003.
Reconsideration Denied August 27, 2003.

*693 Michael B. King, Lane, Powell, Spears and Lubersky, Stephen M. Todd, Todd & Wakefield, Seattle, WA, for Appellant.

Bo Barker, Dean E. Martin, Barker & Martin, P.S., Robert J. Curran, John T. Petrie, John P. Mele, Ryan, Swanson & Cleveland, PLLC, Seattle, WA, for Respondent.

Jodi C. Slavik, Olympia, WA, for Amicus Curiae Building Industry Assoc. of Wash.

Howard M. Goodfriend, Evy McElmeel, Edwards, Sieh, Smith & Goodfriend, P.S., Seattle, WA, for Greater Seattle Chamber of Commerce The Housing Development Consortium of Seattle-King Co. and The Housing Partnership.

ELLINGTON, J.

This action concerns the implied warranties of quality construction under the Washington Condominium Act, and raises questions about disclaimers, the standard of proof of breach, and the measure and proof of damages. Because the statute bars general disclaimers of the warranties of quality for residential units, the disclaimers in the builder's limited warranty were ineffective. At trial on the implied warranty claims, the court properly instructed the jury, using the language of the statute to define breach and the customary construction damages instructions. The court also properly ruled that relocation costs and litigation expenses were not recoverable. We therefore affirm.

Facts

In 1997, Buchan Developments, L.L.C. contracted to build the Park Avenue Condominiums, a 38-unit complex in Kirkland. Buchan provided certain limited builder's warranties for one to two years.

In September 1999, the Park Avenue Condominium Owners Association filed a suit seeking to recover costs for repair of numerous alleged construction defects, including defects in roofing; exterior insulation and finish system cladding; exterior wood siding; patios, decks, and guardrails; the absence of any hallway ventilation; fractures in retaining walls; and improper drainage. Park Avenue asserted breach of the builder's express warranties, breach of the Washington Condominium Act implied warranties, and violations of the Consumer Protection Act.

*694 Buchan moved for summary judgment. The court dismissed the express warranty and Consumer Protection Act claims, but refused to dismiss the implied warranty claims. On Park Avenue's motion for partial summary judgment, the court ruled that certain undisputed defects breached the implied WCA warranties. The court reserved other claims of breach for trial, along with all questions of damages. The jury ultimately awarded Park Avenue $2,300,000. Both parties appeal.

General Disclaimer of Implied Warranties

The Washington Condominium Act (WCA)[1] was enacted in 1989 to address all aspects of condominium construction, sales, and ownership. The Act substantially adopted the major provisions of the Uniform Common Interest Ownership Act (Uniform Act).[2] A principal purpose of the WCA was to provide protection to condominium purchasers,[3] in part through creation of implied warranties of quality construction:

(2) A declarant and any dealer impliedly warrants that a unit and the common elements in the condominium are suitable for the ordinary uses of real estate of its type and that any improvements made or contracted for by such declarant or dealer will be:
(a) Free from defective materials; and
(b) Constructed in accordance with sound engineering and construction standards, and in a workmanlike manner in compliance with all laws then applicable to such improvements.[4]
Buchan is the declarant on the Park Avenue project.

For condominiums intended for residential use, general disclaimers of the implied warranties of quality are prohibited. Specific disclaimers or modifications of the warranties are allowed, so long as certain conditions are met:

(2) With respect to the purchaser of a unit that may be occupied for residential use, no general disclaimer of implied warranties of quality is effective, but a declarant and any dealer may disclaim liability in an instrument signed by the purchaser for a specific defect or specified failure to comply with applicable law, if the defect or failure entered into and became a part of the basis of the bargain.[5]

Buchan's position is that the WCA warranties were entirely displaced[6] by its limited contractual warranty, which had expired,[7] and that Park Avenue thus had no viable claim for construction defects. The first question is whether Buchan effectively disclaimed the implied warranties of quality. It did not. Its only disclaimers were general, and none of the other requirements of the statute were satisfied.

The Park Avenue purchase and sale agreements stated that Buchan's express limited warranty represented "the sole and exclusive rights, duties, obligations and remedies of the Buyer and Seller with respect to warranty claims."[8] The express warranty contained a paragraph titled "Exclusive Rights and Remedies," which provided:

This Limited Warranty, and the obligations of the Builder and the rights of the Owner hereunder, is given by the Builder and accepted by the Home Owner: (a) in lieu of and to the exclusion of all other *695 express or implied warranties ... and (b) in lieu and to the exclusion of all other legal or equitable rights, remedies or causes of action.[9]

As we held in Marina Cove Condominium Owners Association v. Isabella Estates,[10] these are impermissible general disclaimers.

Both the Buchan and Marina Cove warranties also used the same language to accomplish modification of the implied warranties:

[I]n the event of any variance between the provisions of this Limited Warranty and the implied warranty provided under RCW 64.34.445 it is agreed that the provisions of this Limited Warranty: (a) shall control; (b) shall be deemed a modification of such implied warranty as authorized by RCW 64.34.450; and (c) shall be deemed part of the basis of the bargain between the Owner and Builder.[11]

We considered identical language in Marina Cove, and held it ineffective to accomplish a modification of the implied warranties.[12]

According to a Comment to the Uniform Act, a declarant may disclaim a "laundry list" of implied warranties.[13] We relied upon this Comment in Marina Cove to hold a declarant may disclaim implied warranties even if the defect is unknown at the time of contracting.[14] From this, Buchan contends its list of warranties, together with its general disclaimers, amounted to a laundry list of specific disclaimers of coverage beyond the limited warranty. But this interpretation would nullify the legislative prohibition against general disclaimers. Nothing in Marina Cove

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Cite This Page — Counsel Stack

Bluebook (online)
71 P.3d 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-avenue-condominium-owners-assn-v-buchan-developments-llc-washctapp-2003.