States Rein In Construction Defect Litigation

The National Association of Home Builders, Washington, D.C., notes that Wisconsin is the 28th state to enact notice and opportunity to repair (NOR) legislation

The National Association of Home Builders, Washington, D.C., notes that Wisconsin is the 28th state to enact notice and opportunity to repair (NOR) legislation making it easier and less expensive for builders and their suppliers to resolve construction defect disputes with homeowners. Enacted in late March, Wisconsin’s new law requires homeowners 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.

Outside Wisconsin, the Virginia legislature recently passed a bill to strengthen the state’s existing NOR law. Other states are likewise considering NOR legislation during the current legislative cycle. This is certainly not a coincidence that more than half of the states have enacted notice and opportunity to repair laws, says NAHB President David Pressly. State legislators and governors recognize that contentious litigation is not the best way to resolve construction defect disputes.