Homeowners, contractors tangle over law

Monday, Dec. 16, 2002 | 10:54 a.m.

CARSON CITY -- Homeowners from Clark County lined up to tell a task force last week that they suffered through years of trying to get the builders of their homes to fix construction defects.

They urged the task force not to take away their right to sue errant contractors who decline to correct their mistakes.

"Homeowners need more protection," said a tearful Steve Giles, who said his family endured a nightmare when water seeped into his home at the Gateway development.

The task force was appointed after contractors complained about the escalating premiums on their liability insurance and about the difficulties of obtaining insurance coverage. The task force, which meets again Wednesday, is working on suggestions to present to the 2003 Legislature to remedy the problem.

Builders are pushing for the right to make repairs before a lawsuit is filed, but some attorneys and frustrated homeowners pointed out that some contractors don't seem willing to make repairs even when given the opportunity.

Steve Hill, chairman of the Construction Liability Task Force and a Las Vegas contractor, told the homeowners Friday the group had no intention of taking away their right to sue.

"We want a real opportunity to fix the problems," said Hill, a member of the Coalition for Fairness in Construction.

But Scott Canepa, a Las Vegas attorney who represents homeowners in construction defect lawsuits, produced a document that showed that in 120 cases involving five or more homes, the builders never offered to make repairs.

Canepa explained that in cases that involve five or more homes or condominiums, the law says owners must give notice and file suit. Builders are given a chance to fix any defects after a lawsuit is filed.

Builders agreed to that change in the law in 1999. But records show the contractors never stepped up to make the repairs, he said.

Canepa, representing the Nevada Trial Lawyers Association, said he was agreeable to a change in the law so that the owners first give notice to the contractor and provide the contractor a chance to repair before a lawsuit is filed.

Chris Moore, an attorney for insurance companies, said he did not know of any attempt to do away with the rights of homeowners. But he said an effort must be made "to find a new approach to litigation involving construction defects."

He said the right to repair should be in place before the suit is filed.

Hill told the dissatisfied homeowners the task force was "not interested in taking away your rights."

Twelve homeowners, 11 from Clark County, told of similar problems of water seeping into the homes causing mold, electrical troubles and cracks in the walls and foundations.

Giles said the Gateway Development Group failed to build a drainage system that has resulted in his and other homes in the 172-unit project suffering damage. He said he now pumps 3,000 gallons of water from his backyard every day. He and others have a suit pending that is to go to trial Feb. 10.

He said he moved out of his home because of the toxic mold. He said his wife almost died.

Mary Roy, who lives in the Red Hills project, said there was water in the ceiling, on the walkways and in other areas with mold now appearing in her home.

The builders try to make corrections but "they never solve the problem," she said. And she said the builder went bankrupt.

Herb Goldsmith, who lives in the 330-home Duck Creek Village development, said it has been flooded three times. On one occasion helicopters were sent to rescue the residents, he said. Experts discovered wiring problems and that sewer lines were backing up, he said.

"We went through three years of hell. Don't take away our rights," Goldsmith urged the task force. He said a lawsuit was settled, producing money to make the repairs.

Canepa suggested and there appeared to be some agreement on the task force that the standards for becoming and continuing as a contractor need to be raised. He said there is no requirement that a contractor even have a high school diploma. The contractor has only to pass a test and not demonstrate other qualifications.

Canepa also proposed contractors undergo mandatory continuing education, to keep up to date on new construction methods and the law. And he suggested that contractors must be required to self report to the state Contractors Board when they are involved in a construction defect case.

He said some contractors continue to be accused of shoddy construction -- yet there is no disciplinary action taken against them.