Lawyers, builders struggle over bill

Erin Neff

Wednesday, March 14, 2001 | 10:45 a.m.

CARSON CITY -- Previous legislative sessions have addressed construction defects through balancing the rights of homeowners and contractors.

But past compromise legislation has left gaps both sides agree still lead to major problems, particularly in burgeoning Southern Nevada.

This morning, both the Nevada Trial Lawyers Association and the Southern Nevada Homebuilders Association presented bills to fix the problems. As the Assembly Judiciary Committee heard testimony, it became clear this session could be headed for yet another compromise.

Assembly Bill 81, introduced by the Judiciary Committee at the request of the Trial Lawyers Association, would require a builder to pay for an independent inspection of any repair of a construction defect. The builder would also have to post a performance bond equal to 1 1/2 times the cost of the repair.

The bill also provides penalties for contractors who don't properly make repairs and prohibits mandatory binding arbitration agreements from being inserted into home-buying contracts.

"(Homeowners) should not be stripped of their right to trial by jury because of some fine print in a contract," Scott Canepa of the Nevada Trial Lawyers said.

But Jim Wadhams, a lobbyist for the home builders, disagreed.

"Instead of promoting the right to fix, it promotes a fight," Wadhams said.

Supporters of AB81 packed meeting rooms in Carson City and Las Vegas, wearing Save Our Homes stickers. And although 14 sign-in sheets were filled with people wishing to testify, Chairman Bernie Anderson held both sides to just one hour of testimony.

The home builders reserved most of their comments to support their own proposal -- Assembly Bill 133. Testimony on that bill, introduced by Assemblyman Joe Dini, D-Yerington, on behalf of the home builders, was expected to begin later this morning.

Both Assembly bills are companions to Senate bills introduced by Maggie Carlton, D-Las Vegas, on behalf of the trial lawyers and by Mike Schneider, D-Las Vegas, on behalf of home builders.