Brisbane Lodging, L.P. v. Webcor Builders, Inc.

I.

INTRODUCTION

In this action concerning a latent construction defect, Brisbane Lodging, L.P. (Brisbane), appeals from a summary judgment entered in favor of respondents Webcor Builders, Inc., and Webcor Builders (collectively, Webcor). The construction contract executed by the parties included a clause which provided that all causes of action relating to the contract work would accrue from the date of substantial completion of the project. This contract provision clearly and unambiguously abrogated the so-called delayed discovery rule, which would otherwise delay accrual of a cause of action for latent construction defects until the defects were, or could have been, discovered. The trial court concluded the clause was valid and enforceable, noting that the agreement “was one between sophisticated parties seeking to define the contours of their liability.” Summary judgment was then granted for Webcor after finding that Brisbane’s action for latent construction defects was time-barred.

In the published portion of this opinion, we conclude that public policy principles applicable to the freedom to contract afford sophisticated contracting parties the right to abrogate…