In Kralow Co. v. Sully-Miller Contracting Co. (1985) 168 Cal. App. 3d 1029, a developer, Western States, cross-complained against a contractor and subcontractor for alleged "patent deficiencies," such as "improper soil compaction" and inadequate staffing and project supervision. (Id. at pp. 1031-1032.) Western States claimed an array of economic damages, including: direct and indirect construction costs; taxes, insurance and other incidental costs; loss of income; and loss of profits in other transactions due to impaired credit. ( Id. at p. 1032.) On a motion for partial summary judgment, the trial court rejected the developer's argument that section 337.1 applied and found the claims time-barred under the two-year limitations period of section 339, subdivision 1. (168 Cal. App. 3d at pp. 1032-1033.) The Fourth District Court of Appeal, Division Three affirmed, stating its belief the Legislature intended section 337.1 to apply to causes of action based on patent deficiencies "existing upon substantial completion of a project." (168 Cal. App. 3d at p. 1035.) Because Western States admittedly did not seek damages for patent construction defects that still existed upon completion of the project, its claims did not fall within the purview of section 337.1. (168 Cal. App. 3d at p. 1035.)