Editorial: More than law needs changing

Monday, Dec. 23, 2002 | 8:33 a.m.

One of the hottest topics during the 1999 Legislature was construction defects. A compromise among contractors, insurance companies and lawyers who represent homeowners in lawsuits was reached late in the session and a bill was passed. One of its provisions was to allow complex cases -- for example, those brought by homeowners' associations, five or more homeowners, or condominium residents -- to go directly to court. These cases could bypass negotiations with builders in order to settle them more quickly.

Builders, however, have been saying ever since that the law hasn't worked and is one of the major reasons why their insurance premiums have risen by as much as 1,000 percent. They have been demanding the law be changed to once again require negotiations between builders and group homeowners before suits can be filed. This way, they argue, they will have a chance to fix the problem and avoid costly trials. A state task force, whose members represent homeowners, lawyers, builders and insurers, has studied the issue and agrees with the builders. It is expected to formally recommend that the 2003 Legislature change the 1999 law.

We agree with the task force, but see the need for a clause requiring the law to expire unless renewed by the 2005 Legislature. A main reason for the law in the first place was because builders were procrastinating after receiving complaints of defects. If, after two years, the builders have proven that they are fixing the defects, the law could then be made permanent. If they are found to have been engaging in their old tricks, then the law could expire and their insurance bills would be their problem.