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States Make More Headway on Construction Defect Suits
Wisconsin has become the 28th state in the nation to enact notice and opportunity to repair (NOR) legislation making it easier and less expensive for builders and home owners to resolve construction defect disputes.
Signed by Wisconsin Gov. Jim Doyle (D) on March 27, the new law requires home owners to give builders written notice of an alleged construction defect before they can file a lawsuit. The builder then has 30 days to inspect and offer to remedy the defect within a reasonable period of time; offer to settle the claim through a monetary payment; or choose to reject the claim altogether and allow the owner to proceed with a suit.
"We've been looking for a way to resolve disputes without having to go to court," said Frank Madden, president of the Wisconsin Builders Association (WBA). "This legislation provides a sensible alternative that enables the builder and the home buyer to resolve disputes without turning to costly litigation."
Madden noted that many locals throughout Wisconsin have had arbitration procedures in place for a number of years. The new law will complement those existing arbitration procedures, he said.
“We're very pleased to have adopted NOR legislation in the Wisconsin legislature this session,” said Brad Boycks, director of political affairs at the WBA. “Providing contractors with notification and allowing them an opportunity to inspect and repair is an important step, and we hope it will reduce the number of cases unnecessarily taken to the courts.”
Elsewhere in the country, the Virginia legislature recently adopted House Bill 558, which would strengthen the state’s current NOR law. The bill is currently awaiting Gov. Tim Kaine’s (D) signature. Several other states are also considering NOR legislation during the current legislative cycle.
"It's worth noting that more than half of the states have enacted notice and opportunity to repair laws," said NAHB President David Pressly. "This is certainly not a coincidence. Across the country, state legislators and governors have recognized that contentious litigation is not the best way to resolve construction defect disputes."
"Notice and opportunity to repair laws provide a common-sense approach to dealing with construction defect problems," Pressly added. "It's an approach that has received widespread and bi-partisan support across the country. This support goes beyond government officials to the members of our industry and the public in general. This is just one of the many key industry issues the Wisconsin Builders Association has been successful in moving forward for their members.”
For more information on Wisconsin’s new law, e-mail Brad Boycks with WBA, or call him at 800-362-9066 x16.
For more information on NOR laws across the country, e-mail Gerry Keegan at NAHB, or call him at 800-368-5242 x8326.
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