HCS HB 347 -- DEFECTIVE RESIDENTIAL CONSTRUCTION

SPONSOR:  Johnson, 47 (Pratt)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 13 to 3.

This substitute establishes a procedural prerequisite for filing
a lawsuit for defective residential construction.  In its main
provisions, the substitute:

(1)  Requires contractors to provide written notice to
homeowners, including homeowners' associations, upon entering
contracts of the right to offer to cure construction defects
before homeowners may file legal actions;

(2)  Requires homeowners to provide a written notice to
contractors detailing the alleged defective construction prior to
filing a lawsuit;

(3)  Requires contractors to respond timely in writing, offering
an inspection followed by repair, monetary compensation, or
disputation of the claim; offering monetary compensation; or
disputing the claim; and

(4)  Describes the circumstances in which homeowners must first
attempt a mediation of claims or when they may proceed directly
to filing a lawsuit.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill provides protections
for both homeowners and homebuilders, gives builders a better
method to serve their clients' needs, and provides both parties
the opportunity to avoid litigation, thereby saving money.

Testifying for the bill were Representative Pratt; Home Builders
Association of Greater Kansas City; Home Builders Association of
Missouri; St. Louis Home Builders Association; and Missouri
Chamber of Commerce and Industry.

OPPONENTS:  Those who oppose the bill say that the state
constitution guarantees a right to go to court without delay.
The mandatory mediation provisions will cause delays and are not
included in legislation passed by other states.  The procedure is
so complex that it will always require attorney participation,
thus thwarting one of the stated goals of the legislation.

Testifying against the bill were Board of Governors of the
Missouri Bar; Community Associations Institute; and Homeowners
Against Deficient Dwellings, Incorporated.

OTHERS:  Others testifying on the bill say they support the
suggested changes based on Senate Bill 1081 which was vetoed last
year.

Others testifying on the bill was Missouri Association of Trial
Attorneys.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:18 pm