Civil Code §6876. Notice to Members before Filing Construction Defect Action

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 10. Construction Defect Litigation  >  Civil Code §6876. Notice to Members before Filing Construction Defect Action
(a) Not later than 30 days prior to the filing of any civil action by the association against the declarant or other developer of a common interest development for alleged damage to the common areas, alleged damage to the separate interests that the association is obligated to maintain or repair, or alleged damage to the separate interests that arises out of, or is integrally related to, damage to the common areas or separate interests that the association is obligated to maintain or repair, the board shall provide a written notice to each member of the association who appears on the records of the association when the notice is provided. This notice shall specify all of the following:
  (1) That a meeting will take place to discuss problems that may lead to the filing of a civil action.
  (2) The options, including civil actions, that are available to address the problems.
  (3) The time and place of this meeting.
 (b) Notwithstanding subdivision (a), if the association has reason to believe that the applicable statute of limitations will expire before the association files the civil action, the association may give the notice, as described above, within 30 days after the filing of the action. [2013 – Based on former §1368.5]

Civil Code §6874. Notice to Members of Construction Defect Settlement

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 10. Construction Defect Litigation  >  Civil Code §6874. Notice to Members of Construction Defect Settlement
(a) As soon as is reasonably practicable after the association and the builder have entered into a settlement agreement or the matter has otherwise been resolved regarding alleged defects in the common areas, alleged defects in the separate interests that the association is obligated to maintain or repair, or alleged defects in the separate interests that arise out of, or are integrally related to, defects in the common areas or separate interests that the association is obligated to maintain or repair, where the defects giving rise to the dispute have not been corrected, the association shall, in writing, inform only the members of the association whose names appear on the records of the association that the matter has been resolved, by settlement agreement or other means, and disclose all of the following:
  (1) A general description of the defects that the association reasonably believes, as of the date of the disclosure, will be corrected or replaced.
  (2) A good faith estimate, as of the date of the disclosure, of when the association believes that the defects identified in paragraph (1) will be corrected or replaced. The association may state that the estimate may be modified.
  (3) The status of the claims for defects in the design or construction of the common interest development that were not identified in paragraph (1) whether expressed in a preliminary list of defects sent to each member of the association or otherwise claimed and disclosed to the members of the association.
 (b) Nothing in this section shall preclude an association from amending the disclosures required pursuant to subdivision (a), and any amendments shall supersede any prior conflicting information disclosed to the members of the association and shall retain any privilege attached to the original disclosures.
 (c) Disclosure of the information required pursuant to subdivision (a) or authorized by subdivision (b) shall not waive any privilege attached to the information.
 (d) For the purposes of the disclosures required pursuant to this section, the term “defects” shall be defined to include any damage resulting from defects. [2013 – Based on former §1375.1]

Civil Code §6856. CC&Rs Are Enforceable Equitable Servitudes

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 9. Dispute Resolution and Enforcement  >  Article 2. Civil Actions > Civil Code §6856. CC&Rs Are Enforceable Equitable Servitudes
 (a) The covenants and restrictions in the declaration shall be enforceable equitable servitudes, unless unreasonable, and shall inure to the benefit of and bind all owners of separate interests in the development. Unless the declaration states otherwise, these servitudes may be enforced by any owner of a separate interest or by the association, or by both.
 (b) A governing document other than the declaration may be enforced by the association against an owner of a separate interest or by an owner of a separate interest against the association. [2013 – Based on former §1354]

Civil Code §6858. Association’s Standing in Litigation or Other Proceedings

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 9. Dispute Resolution and Enforcement  >  Article 2. Civil Actions > Civil Code §6858. Association’s Standing in Litigation or Other Proceedings

An association has standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with it, the members, in matters pertaining to the following:

 (a) Enforcement of the governing documents.
 (b) Damage to the common area.
 (c) Damage to a separate interest that the association is obligated to maintain or repair.
 (d) Damage to a separate interest that arises out of, or is integrally related to, damage to the common area or a separate interest that the association is obligated to maintain or repair. [2013 – Based on former §1368.3]

Civil Code §6860. Comparative Fault to Apply in Specified Cases

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 9. Dispute Resolution and Enforcement  >  Article 2. Civil Actions > Civil Code §6860. Comparative Fault to Apply in Specified Cases
(a) In an action maintained by an association pursuant to subdivision (b), (c), or (d) of Section 6858, the amount of damages recovered by the association shall be reduced by the amount of damages allocated to the association or its managing agents in direct proportion to their percentage of fault based upon principles of comparative fault. The comparative fault of the association or its managing agents may be raised by way of defense, but shall not be the basis for a cross-action or separate action against the association or its managing agents for contribution or implied indemnity, where the only damage was sustained by the association or its members. It is the intent of the Legislature in enacting this subdivision to require that comparative fault be pleaded as an affirmative defense, rather than a separate cause of action, where the only damage was sustained by the association or its members.
 (b) In an action involving damages described in subdivision (b), (c), or (d) of Section 6858, the defendant or cross-defendant may allege and prove the comparative fault of the association or its managing agents as a setoff to the liability of the defendant or cross-defendant even if the association is not a party to the litigation or is no longer a party whether by reason of settlement, dismissal, or otherwise.
 (c) Subdivisions (a) and (b) apply to actions commenced on or after January 1, 1993.
 (d) Nothing in this section affects a person’s liability under Section 1431, or the liability of the association or its managing agent for an act or omission that causes damages to another. [2013 – Based on former §1368.4]

Civil Code §6854. No Statutory Creation or Expansion of Right to Levy Fines

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 9. Dispute Resolution and Enforcement  >  Article 1. Disciplinary Action > Civil Code §6854. No Statutory Creation or Expansion of Right to Levy Fines
Nothing in Section 6850 shall be construed to create, expand, or reduce the authority of the board to impose monetary penalties on a member for a violation of the governing documents. [2013 – Based on former §1363(i)]

Civil Code §6850. Monetary Penalties and Fine Schedules

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 9. Dispute Resolution and Enforcement  >  Article 1. Disciplinary Action > Civil Code §6850. Monetary Penalties and Fine Schedules
(a) If an association adopts or has adopted a policy imposing any monetary penalty, including any fee, on any association member for a violation of the governing documents, including any monetary penalty relating to the activities of a guest or tenant of the member, the board shall adopt and distribute to each member, by individual notice, a schedule of the monetary penalties that may be assessed for those violations, which shall be in accordance with authorization for member discipline contained in the governing documents.
 (b) Any new or revised monetary penalty that is adopted after complying with subdivision (a) may be included in a supplement that is delivered to the members individually, pursuant to Section 6553.
 (c) A monetary penalty for a violation of the governing documents shall not exceed the monetary penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation.
 (d) An association shall provide a copy of the most recently distributed schedule of monetary penalties, along with any applicable supplements to that schedule, to any member on request. [2013 – Based on former §1363(f)]

Civil Code §6840. Limitations on Owner Liability Arising from Common Area Ownership

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 8. Insurance and Liability > Civil Code §6840. Limitations on Owner Liability Arising from Common Area Ownership
(a) It is the intent of the Legislature to offer civil liability protection to owners of the separate interests in a common interest development that have common area owned in tenancy in common if the association carries a certain level of prescribed insurance that covers a cause of action in tort.
 (b) Any cause of action in tort against any owner of a separate interest arising solely by reason of an ownership interest as a tenant in common in the common area of a common interest development shall be brought only against the association and not against the individual owners of the separate interests, if both of the insurance requirements in paragraphs (1) and (2) are met:
  (1) The association maintained and has in effect for this cause of action, one or more policies of insurance that include coverage for general liability of the association.
  (2) The coverage described in paragraph (1) is in the following minimum amounts:
   (A) At least two million dollars ($2,000,000) if the common interest development consists of 100 or fewer separate interests.
   (B) At least three million dollars ($3,000,000) if the common interest development consists of more than 100 separate interests. [2013 – Based on former §1365.9]

Civil Code §6826. Assigning or Pledging the Right to Collect Assessments

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 3. Assessment Collection > Civil Code §6826. Assigning or Pledging the Right to Collect Assessments
(a) An association may not voluntarily assign or pledge the association’s right to collect payments or assessments, or to enforce or foreclose a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the association.
 (b) Nothing in subdivision (a) restricts the right or ability of an association to assign any unpaid obligations of a former member to a third party for purposes of collection. [2013 – Based on former §1367.1(g)]

Civil Code §6828. Assessment Liens Created before or after January 1, 2003

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 3. Assessment Collection > Civil Code §6828. Assessment Liens Created before or after January 1, 2003
 (a) Except as otherwise provided, this article applies to a lien created on or after January 1, 2014.
 (b) A lien created before January 1, 2014, is governed by the law in existence at the time the lien was created. [2013 – Based on former §1367(g) & 1367.1(m)]