Friday, May 23, 2003
Copyright © Las Vegas Review-Journal

Both sides support home defects bill

Lawyers, builders vow to back compromise

CARSON CITY -- Home builders and trial lawyers promised the Assembly Judiciary Committee on Thursday that they'd stick with their compromise on revisions to Nevada's construction defects law.

Both sides said they're happy with the bill's provisions that give builders the right to repair any defective construction, but still maintain homeowners' rights to pursue action through the courts if repairs aren't made.

The compromise, an amendment to Senate Bill 241, completely replaced the original bill. It outlines procedures and timelines that homeowners and builders must follow when a homeowner or homeowner association claims there's a construction defect.

If builders elect to repair defects, all repairs must be completed within 105 days if the problems are in up to four homes, and 150 days if the defects are in five or more homes.

One of the key sticking points in the months of negotiations over construction defect reform was a notice requirement on builders when the defects may exist in homes whose owners haven't filed a claim.

Under the agreement, when a homeowner notifies a builder of a common construction defect, the builder may send a notice to other homeowners who have similar homes constructed by the builder but who haven't filed a complaint.

If the notice isn't sent, homeowners could go straight to court. If a notice is sent, defects are found and a repair is requested, repairs would have to be completed within 105 days.

Scott Canepa, a lobbyist for the Nevada Trial Lawyers Association, said the provisions establish a new precedent in Nevada law, with the onus of notifying homeowners falling on the builders if they have reason to believe there might be something wrong.

After drawn-out, heated negotiations, both sides agreed on a dozen concepts they wanted in a new bill.

Jim Wadhams, a lobbyist for the Coalition for Fairness in Construction and the Southern Nevada Homebuilders Association, said the amendment encapsulates those concepts. He said the bill's effect, however, is still to be determined.

"What you pass is ultimately tested as to its success on the streets and in the courts," Wadhams said.

The conflict over reform stems from a flood of construction defect lawsuits. Class-action home defect suits are increasingly common in Southern Nevada, where sprawling developments are built quickly to accommodate the region's tremendous growth.

More than 100 such suits are now clogging Las Vegas courts.