Segal McCambridge Secures Summary Judgment in High-Exposure California Landslide Litigation

Segal McCambridge is pleased to announce a significant victory for client secured by Los Angeles Shareholder Amy Pennington, who obtained summary judgment in a high-profile construction litigation matter arising from a 2023 landslide in Newport Beach, California.

The case stemmed from a major hillside landslide that destroyed several multimillion-dollar homes. Plaintiffs brought claims against numerous public and private entities, alleging that construction activities, soil conditions and storm drain work performed years earlier contributed to the slope failure. Our client was named based on allegations that storm drain relining work completed for the City in 2012 was a contributing factor.

Amy successfully argued that all claims against the client were barred under California Code of Civil Procedure section 337.15, the state's ten-year statute of repose governing latent construction defect claims.

During oral argument, plaintiffs attempted to avoid the statute by characterizing their claims as involving personal injuries rather than property damage. The Court rejected that argument, holding plaintiffs to the allegations contained in their operative complaint, which asserted negligence and property damage claims only.

The Court further rejected plaintiffs' attempt to invoke the statute's willful misconduct exception, finding that no such allegations had been pleaded. After determining that the client's work had been completed in 2012 and the lawsuit was not filed until 2023, the Court concluded the claims were time-barred as a matter of law.