Home warranty ballot measure survives challenge

A judge late Wednesday rejected efforts by homebuilders to knock a measure off the ballot that would require them to provide 10-year warranties to buyers.

Judge asked to block vote on home warranties

Judge Sam Myers acknowledged that at least one portion of Proposition 201 was improperly drafted. And that error was repeated in the copies of the measure that were attached to the petitions circulated to get the signatures to put the measure on the November ballot.

But Myers said state law requires only that initiative petitions be in "substantial compliance" with legal requirements.

Potentially more significant, Myers said that Lisa Hauser, an attorney representing the homebuilders, presented no evidence that any of the circulators were misled.

Wednesday's ruling is not the last word. Hauser said she intends to appeal.

Current law says that buyers of new homes have eight years to sue over any defects. This initiative, financed by Sheet Metal Workers International Association, requires developers to provide an actual 10-year warranty without additional cost.

Hauser pointed out the measure does more than that, with provisions ranging from giving buyers a 100-day right to cancel purchase contracts to spelling out that the price quoted on model homes must give the buyer a house identically equipped with things like appliances or upgraded carpeting.

And she told Myers that all of those new provisions were not placed in capital letters. That, she said, failed to provide would-be petition signers who would scan the text with fair notice of what the initiative would change.

Myers conceded that is what the law requires. But he said initiative backers capitalized most of the new language. And the judge said the proposed changes in the law would be obvious anyone who took the time to read the whole petition.

Myers also accepted Hauser's argument that the summary description of Proposition 201, written by initiative backers, does not mention that one change in the law would affect not just new homes but also commercial construction. Hauser said that is an important oversight given that most petition signers would look only at the summary - which is actually printed on the petitions - and not read the entire text of the attached initiative.

The judge said, though, nothing in the legal requirement for a summary compels drafters to make mention of every provision in an initiative. Myers also noted the law limits the length of summaries to 100 words.

"In light of the statutory 100-word limitation, reasonable choices may have to be made by initiative proponents," Myers wrote, quoting from prior court rulings. "The failure to describe some provisions of a proposed law within the description printed on signature sheets does not rise to the level of fraud, confusion and unfairness sufficient to invalidate a certified initiative petition.''