McCloskey

In 1977 Anthony and Vera McCloskey (appellants) sued respondents Carlton Builders and others (Carlton) for fraud in connection with the purchase of appellants’ residence. (Suit 1.) Several other causes of action, including ones based in negligence and breach of warranty, were dismissed pursuant to Code of Civil Procedure section 337.15. Appellants were awarded $40,000 by a judgment on special verdict. The judgment and the partial dismissal were affirmed on appeal.

On July 7, 1983, appellants sued Carlton for fraud, strict liability, negligence and breach of warranty in connection with the purchase of appel lants’ residence. (Suit 2.) Carlton was awarded the summary judgment on statute of limitations and res judicata grounds. Appellants’ appeal focuses on the fraud cause of action only.

Facts

Appellants bought their home in 1964. In July 1965 they noticed “hairline” cracks around the foundation. By 1974 the cracks were one-half inch or more wide, and the foundation slab began to buckle and warp. Severe damage to their home resulted. At the prior trial it was established that the damage was caused by separation of the slab from its footings due to the interaction of…