Legislative Group Endorses Favorable ‘Notice and Opportunity to Repair’ Amendments
At its recent policy summit meeting in Phoenix, the American Legislative Exchange Council's ALEC) Civil Justice Task Force endorsed several amendments to their model "Notice and Opportunity to Repair" legislation.
The legislation, which is the basis for laws in 14 states, establishes a process for settling construction disputes out of court and is a critical step toward alleviating the industry's general liability insurance crisis.
- Make the process of resolving construction disputes more streamlined and transparent by allowing a contractor to inspect an alleged defect and making a claimant provide a reason for not accepting a reasonable settlement offer. In addition, the act retroactively applies to all units covered under the state’s statute of repose.
- Offer incentives for settling disputes out of court and exclude the contractor from liability for certain defects, such as those that that the home owner knew about before the home was purchased or when a contractor is not allowed to perform warranty service work.