Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Co., Inc.
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Eisenberg filed suit alleging a claim under Section 7031 of the Business and Professions Code for disgorgement against Suffolk five years after Suffolk completed construction on Eisenberg's 108-unit assisted living facility. The trial court granted Suffolk's motion for summary judgment.
The Court of Appeal held that the one-year statute of limitation applies to claims for disgorgement under section 7031(b). The court also held that the discovery rule does not apply, and that a section 7031(b) claim accrues upon the completion or cessation of the performance of the act or contract at issue. In this case, Eisenberg failed to bring its section 7031(b) claim within one year after the completion or cessation of Suffolk's performance, and thus its claim is time-barred.
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