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Krusi v. S. J. Amoroso Construction Co.6/23/2000
As modified June 29, 2000. Second modification made July 18, 2000. There is no change in the judgment.
GEORGE KRUSI, AS TRUSTEE, ETC., ET AL., PLAINTIFFS AND APPELLANTS,
v.
S. J. AMOROSO CONSTRUCTION CO., INC., ET AL. DEFENDANTS AND RESPONDENTS.
(San Mateo County Super. Ct. No. 396091)
Attorneys for Appellants Marlis McAllister Steven M. White Attorneys for Respondents Bruce Imai Jeffrey C. Tung Imai, Tadlock & Keeney, Llp
The opinion of the court was delivered by: Haerle, Acting P.J.
CERTIFIED FOR PUBLICATION
I. INTRODUCTION
In 1995, two testamentary trusts (hereinafter appellants) purchased a two-story commercial building. The following year, they filed suit against respondents, the architects and contractors who designed and constructed the building in 1985-1987, alleging improper design and/or construction. The trial court granted respondents summary judgment on the basis that appellants, the fourth owners of the building, lacked standing to sue. We affirm.
II. FACTUAL AND PROCEDURAL BACKGROUND
The building at issue in this case is located at 3351 El Camino Real in Atherton, San Mateo County. Construction on it started in September 1985 and a notice of completion was filed in March 1987. Respondents, defendants below, are the building's architects and general contractor and some of the latter's subcontractors.
The owner of the building when it was completed was a corporation named Atherton Square II Associates, Inc. That entity was, apparently, the successor in interest to a partnership known as Atherton Square Partnership, which was the entity that originally contracted with the architects for the design of the building. In September 1990, another partnership, 3351 El Camino Associates, acquired the building. That group sold it to appellants in February 1995, and appellants thus became its fourth (counting the first partnership) owners.
During the course of the original construction, a dispute arose between the first owner of the property, Atherton Square Partnership, and the architect, one of the respondents here. The dispute, which went to arbitration, ultimately included a claim by the owner that the architect's work was defective. More specifically, the owner claimed that there were leaks in the garage headwall. Prior to the completion of the arbitration, one of the architect's officers inspected the building and found evidence of such leaks. In a deposition taken in the course of the arbitration, that officer testified he was uncertain as to whether there had been any specific efforts undertaken by the general contractor, S. J. Amoroso Construction Co., Inc. (Amoroso), to remedy the water infiltration problem. The arbitration was heard by an American Arbitration Association arbitrator who, on April 30, 1988, ruled in favor of the architect on the owner's defective work claims.
Prior to the sale to appellants in 1995, their seller became aware of several leaks, which occurred during the rainy season from the building's decks into various tenant offices. At least one of these leaks was characterized by the building manager as "persistent." The same manager testified that another tenant reported "numerous [leaks] over a period of years." These leaks were "to the best of [seller's] knowledge . . . repaired prior to the sale" to appellants. Indeed, the seller reported to its limited partners that the sale price would probably have to be reduced, albeit by only a small amount (probably around $15,000), because of the costs to
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