Getting Homes Repaired
SB 1271 amends the Purchaser Dwelling Act to require subcontractor notice at the onset of a claim that alleges construction defects. Prompt notice will provide subcontractors with as much advance notice as possible to coordinate and make the requested repairs, heading off lengthy and complex litigation.
SB 1271 provides homeowners with greater flexibility in coordinating the requested repairs by providing homeowners with a process to have the original subcontractor perform the repairs, or a different subcontractor altogether. If the homeowner selects a different subcontractor, the new subcontractor’s liability in performing the repairs is limited only to the subcontractors’ scope of work. This will help incentivize other subcontractors to make the requested repairs, once again heading off lengthy and complex litigation.
SB 1271 also requires the homeowner's notice to the seller to provide sufficient detail to identify the alleged construction defects, including the nature, location and impairment to the home. Another change that will help contractors better identify and repair the alleged construction defects, and avoid lengthy and complex litigation.
A Streamlined Process
SB 1271 establishes a streamlined process for the resolution of construction defect claims.
The bill allows for the bifurcation of dwelling actions to dismiss claims without merit, release parties without fault and assign any remaining financial responsibility based on relative degrees of fault. Given the complexity of multi-party dwelling actions, these changes will simplify and accelerate the process.
Establishing a process that identifies each party involved and allocates liability on a pro rata basis (based on degrees of fault) will also help ensure that the process is efficient, economical and convenient for all parties involved.
Proportional Liability
SB 1271 establishes proportional liability for homebuilders and residential construction contractors by limiting the scope of permissible indemnity agreements. This single change will ensure that responsible parties each pay their respective share of any loss, and that each share is based on the extent of fault attributable to that party.
Awarding Attorney Fees
SB 1271 allows a court to award attorney fees to the prevailing party on a contested issue by contested issue basis. The bill also provides for the recovery of expert witness fees in cases involving a single homeowner. This approach will help reign in existing incentives to incur excessive fees for minimal defects.
To view the final version of SB 1271 that was signed by the Governor, please click HERE.
