Need a book? Engineering books recommendations...

Return to index: [Subject] [Thread] [Date] [Author]

Fwd: Code violations

[Subject Prev][Subject Next][Thread Prev][Thread Next]
In a message dated 10/1/00 2:13:17 PM Pacific Daylight Time, 
MarkKGilligan(--nospam--at)compuserve.com writes:

<< 
 I would argue that the owner had suffered an economic loss in that the
 resale value of the property was decreased by the lack of the minimum
 lateral system as required by the Building Code.  In addition the absence
 of holdowns would make it more expensive to obtain earthquake insurance or
 to obtain a loan.
 "" You are right, the decreased resale value is a loss, but it is not actual 
until the homeowners sell their homes....This was precisely an argument 
addressed to the Supreme Court in the Aas hearing.  You need also to know 
that this item of damage is referred to as Stigma damages which was also not 
allowed in the Aas appellate ruling.""
 
  >>

--- Begin Message ---
George

I would argue that the owner had suffered an economic loss in that the
resale value of the property was decreased by the lack of the minimum
lateral system as required by the Building Code.  In addition the absence
of holdowns would make it more expensive to obtain earthquake insurance or
to obtain a loan.

Does not the Building department have the authority to require that the
code violation be corrected?  The costs of the repairs would be evidence of
the economic loss.

Mark Gilligan


++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
>
To follow up, the Economic Loss Rule, applied in Aas wrongly in my view,
has 
no application when serious code violations are in question, or where the 
integrity of a structure is jeopardized by inferior construction or faulty 
design.   Leaving consumers with only contractual remedies against 
developers, who severly limit their contractual liability, is an injustice.
 

George Hakim
<


--- End Message ---