Concord reached about defects issue

Ben Kieckhefer

Monday, May 19, 2003 | 11:09 a.m.

CARSON CITY -- Drawn-out debate and negotiations ended Friday with a compromise between trial lawyers and home builders on how to best restructure Nevada laws governing home construction defects.

The two sides agreed to amend SB241, establishing pre-litigation relief for builders and giving them the right to repair any problems -- but still not impeding homeowners' right to sue the builder in civil court if they aren't satisfied.

The measure also requires both sides to agree on a mediator to help settle disputes before a suit can be filed.

The Assembly Judiciary Committee unanimously adopted the proposal's concepts, and legislative staffers will now draft the actual language of the amendment.

Both sides were close to reaching an agreement on the bill last week, but negotiations fell apart over provisions dealing with class-action suits.

In the agreement, if someone claims a construction defect against a contractor and says the problem could be common among homes in a community, the contractor must investigate and, if the claim is valid, send out a letter to the other homeowners. The builder would maintain the right to repair all the problems.

Class-action suits could be started if contractors don't send out the letters, follow the required procedures or don't start the repairs.

Homeowners say class-action home defect suits are increasingly common in southern Nevada, where sprawling developments are built quickly to accommodate the region's tremendous growth. Over 100 such suits are now clogging Las Vegas courts.

Clark County District Judge Nancy M. Saitta, who handles construction defect suits, said she advised in the conceptualization of the bill and believes it will help.

"This allows us to continue to do what is in the best interest of the community," Saitta said.

Judiciary Chairman Bernie Anderson, D-Sparks, said he thinks the agreement addresses his main concern, that people get their homes fixed.

Assembly Majority Leader Barbara Buckley, D-Las Vegas, said she hopes the measure unclogs the courts. But if it doesn't, she said the Legislature should address the problem in the 2005 session by making building inspectors work more thoroughly and make sure builders are doing their jobs right.