Construction Defect Notice and Opportunity to Repair Statute Amendments - 1 Passed, 1 Bogged Down, 1 Dead
Since the building boom that started in the mid-1990's, Minnesota, Nevada, and Colorado each enacted Notice and Opportunity to Repair statutes ("NOR Statutes") intended to reduce the volume and expense of residential construction defect litigation. This past legislative season, legislatures in each of these states considered bills to amend their NOR Statutes. One passed, one may pass, and the other died in committee.
Minnesota
The Minnesota Legislature passed a bill (HB420) amending Minnesota's NOR Statute. This bill makes the following changes to Minnesota's NOR Statute:
The Minnesota Legislature is also considering other bills amending the Minnesota NOR Statute:
None of these bills has passed both houses yet. Because these bills chip-away at builder friendly terms of the Minnesota NOR Statute, they're far more likely to arouse opposition from the builders with lower odds of passing.
Brian Johnson at Finance and Commerce Magazine wrote a recent article titled, Bills Aim To Protect Home Buyers When Construction Defects Occur, about the Minnesota NOR Statute and proposals for amendments to it. He also helped with background for this post; so I'd like to take this opportunity to thank him here.
Nevada
The Nevada Legislature is considering a bill (SB349) to amend Nevada's NOR Statute, commonly known as "Chapter 40" for it's location among the Nevada Revised Statutes. Many regard Chapter 40 as the most comprehensive NOR Statute in the United States.
SB349 would make the following changes to Chapter 40:
Colorado
The Colorado Legislature considered a bill (SB246 (Homeowner Protection Act of 2009)) to amend Colorado's NOR Statute (Colorado Revised Statutes Section 13-20-801 et seq)., known as the Construction Defect Reform Act.
SB246 would amend the Colorado Construction Defect Reform Act so that interest at 6% per year on successful claimants' damages awards would start building when the defective element was installed, even it didn't fail for years. According to the Colorado Civil Justice League, SB246 did not pass this year.
Minnesota
The Minnesota Legislature passed a bill (HB420) amending Minnesota's NOR Statute. This bill makes the following changes to Minnesota's NOR Statute:
- Construction contracts must re-state the statutory warranties already imposed under Minnesota's NOR Statute.
- The statutory warranties are non-waiveable. Regardless of what language there is a construction contract, or other agreement between a contractor and an owner, attempted waivers of these warranties is void.
The Minnesota Legislature is also considering other bills amending the Minnesota NOR Statute:
None of these bills has passed both houses yet. Because these bills chip-away at builder friendly terms of the Minnesota NOR Statute, they're far more likely to arouse opposition from the builders with lower odds of passing.
Brian Johnson at Finance and Commerce Magazine wrote a recent article titled, Bills Aim To Protect Home Buyers When Construction Defects Occur, about the Minnesota NOR Statute and proposals for amendments to it. He also helped with background for this post; so I'd like to take this opportunity to thank him here.
Nevada
The Nevada Legislature is considering a bill (SB349) to amend Nevada's NOR Statute, commonly known as "Chapter 40" for it's location among the Nevada Revised Statutes. Many regard Chapter 40 as the most comprehensive NOR Statute in the United States.
SB349 would make the following changes to Chapter 40:
- Narrow what qualifies as a "construction defect".
- Remove a provision that allows people who successfully pursue construction defect claims (defined in Chapter 40 as a "claimant" ) to recover their attorneys fees from contractors and design professionals.
- Require
an affidavit from the claimant's lawyer that the lawyer has notified
their client of Chapter 40, its requirements and limitations. If the
claimant is a homeowners association the affidavit must affirm that
association management has notified all the association members of
Chapter 40. If the claimant's lawyer does not file this affidavit when they file a construction defect lawsuit, the court will dismiss the lawsuit.
Colorado
The Colorado Legislature considered a bill (SB246 (Homeowner Protection Act of 2009)) to amend Colorado's NOR Statute (Colorado Revised Statutes Section 13-20-801 et seq)., known as the Construction Defect Reform Act.
SB246 would amend the Colorado Construction Defect Reform Act so that interest at 6% per year on successful claimants' damages awards would start building when the defective element was installed, even it didn't fail for years. According to the Colorado Civil Justice League, SB246 did not pass this year.
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