Brian Duggan – June 2, 2013
A last-ditch effort by Assembly Republicans to get a watered-down construction defect bill passed this session got a committee hearing on Sunday.
Assemblyman Pat Hickey, R-Reno, is pushing Assembly Bill 504, which has the backing of construction industry representatives, but is opposed by trial lawyers who represent homeowners.
And given the legislation’s 11th hour introduction, Hickey acknowledges his bill remains a long-shot. It, however, may stand a chance as a potential last-minute bargaining chip on an issue favored by the GOP but often considered legislative anathema to Democratic lawmakers.
“Folks this bill is not perfect, I would like for it to do a lot more,” Hickey told lawmakers on the Assembly Commerce and Labor committee.
He added that without taking a first step on changing Nevada’s construction defect laws, “we’ll continue to reward litigation over resolution.”
The bill would narrow the definition of what’s considered a construction defect and would require homeowners who sought construction defect litigation to sign an affidavit disclosing the complaint when trying to sell the property.
Hickey’s bill also includes language that would prohibit a subcontractor from being held liable for the “sole negligence or willful misconduct” of the general contractor unless that risk is explicitly spelled out in a contract.
Assemblyman Ira Hansen, R-Sparks, who owns a plumbing business, said that would not change anything and called the language a “backhanded slap” to subcontractors.
Notably, the language over subcontractor liability for construction defects already exists in another Democratically-sponsored bill, AB367, which is still in committee.
Charles “Dee” Hopper, a Las Vegas-based attorney who represents homeowners in construction defect lawsuits, testified against Hickey’s bill, especially the legislation’s redefinition of what constitutes a defect.
“Basically, their bill up there is, in our belief, harmful to the homeowners because it takes away the homeowner’s rights to bring an action for a poorly built home, a construction defect,” Hopper said.
Under the legislation, the definition of a construction defect would be combined under two instead of four.
As a result, a defect would either need to potentially cause a person or property an unreasonable risk of injury or it would need to satisfy several factors such as violating any law or building code, being poorly constructed and causing physical damage to the building.
Republicans have unsuccessfully tried to get construction-defect legislation passed in the Legislature for years, including a more ambitious bill earlier this year.
They have argued the state’s current law gives way to too many lawsuits and requires attorneys on both sides of the dispute to be compensated regardless of outcome.
via Watered-down Nevada construction defect bill gets hearing | Reno Gazette-Journal | rgj.com.