1 / 21

Construction Defect Action Reform Act CRS § 13-20-801 et. seq.

Construction Defect Action Reform Act CRS § 13-20-801 et. seq. Panacea or Pain?. Purpose of CDARA. Streamline Construction Defect Litigation Respond to multi-party lawsuits over “technical” code violations Limit shotgun lawsuits. Definitions.

tibor
Download Presentation

Construction Defect Action Reform Act CRS § 13-20-801 et. seq.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Construction Defect Action Reform Act CRS § 13-20-801 et. seq. Panacea or Pain? CONSTRUCTION LAW GROUP at Lee & Assocaites

  2. Purpose of CDARA • Streamline Construction Defect Litigation • Respond to multi-party lawsuits over “technical” code violations • Limit shotgun lawsuits CONSTRUCTION LAW GROUP at Lee & Assocaites

  3. Definitions • Construction Professional – Architect, Engineer, Contractor, Subcontractor, Developer, Builder, Builder Vendor, or inspector. • Action – civil action or arbitration for damages loss to or loss of use. CONSTRUCTION LAW GROUP at Lee & Assocaites

  4. Notice Requirements • In Writing List of Defects • Personal Service or Certified Mail • 90 Days Pre-suit for Commercial • 75 Days Pre-suit for residential CONSTRUCTION LAW GROUP at Lee & Assocaites

  5. Inspections • “Reasonable” access within 30 days • Scope of inspection • If defect list is amended, a new inspection is allowed. CONSTRUCTION LAW GROUP at Lee & Assocaites

  6. Post-Inspection Action • Offer to Make Repairs • Offer a “sum certain” for settlement CONSTRUCTION LAW GROUP at Lee & Assocaites

  7. Response • Description of Inspection • Findings • Scope of Required Remedial Work • Schedule for Work CONSTRUCTION LAW GROUP at Lee & Assocaites

  8. Post-Offer Options • Accept or Reject within 15 days • If rejected, claimant may sue • If Accepted: • Payment as per terms of offer or • Repairs must be as per offer including schedule CONSTRUCTION LAW GROUP at Lee & Assocaites

  9. Results of Non-Compliance by Plaintiff • Non-Jurisdictional • Suit may be stayed pending compliance CONSTRUCTION LAW GROUP at Lee & Assocaites

  10. Result of Failure to Respond By Construction Professional • Potential for treble damages under CCPA CONSTRUCTION LAW GROUP at Lee & Assocaites

  11. Result of Failure to Comply with Offer • Exposure to treble damages under CCPA CONSTRUCTION LAW GROUP at Lee & Assocaites

  12. Failure to Comply with Offer • Claimant may sue on the offer or • Claimant may sue on the original defect CONSTRUCTION LAW GROUP at Lee & Assocaites

  13. Defenses for Construction Professional • Claimant’s Failure to Cooperate CONSTRUCTION LAW GROUP at Lee & Assocaites

  14. Limitation on Claims • If a negligence action is based on code violation actual damage is required. • “Other” tort claims not limited • Contract claims not limited • Warranty claims not limited • Statutory violation (except building code) not limited CONSTRUCTION LAW GROUP at Lee & Assocaites

  15. Limitation of Damages • Limited to “actual” damages, unless: • Claimant proves CCPA violation and • The monetary offer is less than 85% of recovery or • The reasonable cost of repair as offered is less than 85% of the amount awarded. CONSTRUCTION LAW GROUP at Lee & Assocaites

  16. Noneconomic Damages • Noneconomic damages and derivative noneconomic damages limited to $250,000.00 See 13-21-102.5(2)(a) and 13-21-102.5(2)(b) CONSTRUCTION LAW GROUP at Lee & Assocaites

  17. Definition of Damages • Damages – The Lesser of (1) Fair market value without the defect (2) Replacement cost or (3) Reasonable cost to repair. CONSTRUCTION LAW GROUP at Lee & Assocaites

  18. Unresolved Issues • Punitive Damages – Does the failure to include them in the definition of damages mean they are not available? • Actual Damages – Are damages limited to only those categories in the definition? CONSTRUCTION LAW GROUP at Lee & Assocaites

  19. Unresolved Issues • Economic and Non-Economic Damages – Are damages for annoyance, aggravation, inconvenience, etc. recoverable as “personal injury” subject to the $250,000 cap? • How many “increments” of $250,000 can be awarded in the same lawsuit? CONSTRUCTION LAW GROUP at Lee & Assocaites

  20. Constitutional Questions • Is the differing treatment of residential and commercial properties a violation of equal protection? • Is the treatment of construction professionals differently from all others a violation of equal protection? • Does the inspection requirement violate an owner's due process rights? CONSTRUCTION LAW GROUP at Lee & Assocaites

  21. CONSTRUCTION LAW GROUP AT LEE & ASSOCIATES, LLC CONSTRUCTION LAW GROUP at Lee & Assocaites

More Related