Construction Defect Action Reform Act CRS § 13-20-801 et. seq.
description
Transcript of Construction Defect Action Reform Act CRS § 13-20-801 et. seq.
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Construction Defect Action Reform Act CRS § 13-20-
801 et. seq.
Panacea or Pain?
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Purpose of CDARA
Streamline Construction Defect LitigationRespond to multi-party lawsuits over “technical” code violationsLimit shotgun lawsuits
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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.
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Notice Requirements
In Writing List of DefectsPersonal Service or Certified Mail90 Days Pre-suit for Commercial75 Days Pre-suit for residential
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Inspections
“Reasonable” access within 30 daysScope of inspection If defect list is amended, a new inspection is allowed.
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Post-Inspection Action
Offer to Make RepairsOffer a “sum certain” for settlement
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Response
Description of InspectionFindingsScope of Required Remedial WorkSchedule for Work
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Post-Offer Options
Accept or Reject within 15 daysIf rejected, claimant may sue If Accepted: Payment as per terms of offer or Repairs must be as per offer including
schedule
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Results of Non-Compliance by Plaintiff
Non-JurisdictionalSuit may be stayed pending compliance
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Result of Failure to Respond By Construction Professional
Potential for treble damages under CCPA
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Result of Failure to Comply with Offer
Exposure to treble damages under CCPA
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Failure to Comply with Offer
Claimant may sue on the offer orClaimant may sue on the original defect
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Defenses for Construction Professional
Claimant’s Failure to Cooperate
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Limitation on Claims
If a negligence action is based on code violation actual damage is required.“Other” tort claims not limitedContract claims not limitedWarranty claims not limitedStatutory violation (except building code) not limited
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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.
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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)
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Definition of Damages
Damages – The Lesser of (1) Fair market value without the defect (2) Replacement cost or (3) Reasonable cost to repair.
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CONSTRUCTION LAW GROUP at Lee & Assocaites
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?
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CONSTRUCTION LAW GROUP at Lee & Assocaites
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?
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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?
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CONSTRUCTION LAW GROUP at Lee & Assocaites
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