A bill aimed at reducing the number of construction-defect lawsuits filed by homeowners is advancing in the Florida Senate even as critics say the bill goes too far in restricting the limitations period on filing such litigation.
Senate Bill 736, authored by Sen. Travis Hutson (R-St. Augustine), passed the Senate Rules Committee 11-4 on Thursday. Among its provisions is a reduction of the time owners of single-family homes have to sue a contractor for a latent, or hidden, construction defect to five years – in contrast to the 10-year time limitation in current law.
The bill outlines procedures to create an alternative dispute-resolution process for resolving construction defects, allowing for more formal discussions and settlement proposals to be considered before a dispute can move into the legal system. In addition, the provisions would encourage homeowners to accept reasonable settlement offers by making them ineligible for attorney fee awards in some cases.
Among the groups backing Hutson’s bill is the Florida Home Builders Association, which sees the legislation as a way to curb excessive litigation against the construction industry.
“Currently, frivolous legal actions are unnecessarily increasing costs for home buyers and delaying those with legitimate concerns in their efforts to reach a resolution,” Rusty Payton, the association’s CEO and chief lobbyist, told the Florida Record in an email. “The goal here is to reduce the need for litigation while preserving a homeowner’s right to litigate when necessary.”
Passing SB 736 would put Florida more in line with statues of repose in other states in the Southeast, Payton said.
“SB 736 helps Florida work toward striking an appropriate balance so that the statute of repose covers legitimate construction defects yet is not so long that builders and tradespeople become liable for problems that are a result of failure to properly maintain a home,” he said.
Settlements in construction-defect disputes could come in the form of written offers to remedy the defect, monetary payments or a combination, according to the state legislature’s analysis of the bill. If passed, the measure would take effect on July 1.