Del Mar Beach Club Owners Ass'n v. Imperial Contracting Co.

Plaintiff, Del Mar Beach Club Owners Association, Inc. (Association) appeals judgments of dismissal in favor of all defendants.

The principal questions are whether the Association, created to acquire and hold title to property included in a planned development pursuant to Business and Professions Code section 11003 has standing to maintain this action, and if so, whether it can state a cause of action for strict liability against defendants as “manufacturers” of retail housing.

As we will explain, we conclude the Association has standing and has stated a cause of action for strict liability against the developer-builder of the project. We also decide the Association cannot state a cause of action for strict liability against the architects and engineers. We dispose of the judgments accordingly.

General and Procedural Background

Before discussing the procedural history, it may be helpful to first identify the participants and to describe the commercial setting giving rise to this litigation.

Association is the managing entity and owner of land and buildings of the Del Mar Beach Club, a planned development (see Bus. & Prof. Code, § 11003), consisting of approximately…