HF 211

1st Unofficial Engrossment - 86th Legislature (2009 - 2010)

Posted on 12/26/2012 11:27 p.m.

1.1A bill for an act 1.2relating to civil actions; statutory housing warranties; regulating recovery 1.3for breaches; requiring a report;amending Minnesota Statutes 2008, section 1.4327A.05. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. Minnesota Statutes 2008, section 327A.05, is amended to read: 1.7327A.05 REMEDIES. 1.8    Subdivision 1. New home warranties. Upon breach of any warranty imposed by 1.9section 327A.02, subdivision 1, the vendee shall have a cause of action against the vendor 1.10for damages arising out of the breach, or for specific performance. new text begin If the vendee is the new text end 1.11 new text begin prevailing party, the vendee may also be awarded the vendee's costs, disbursements, and new text end 1.12 new text begin reasonable attorney fees. new text end Damages shall be limited to: 1.13(a) the amount necessary to remedy the defect or breach; or 1.14(b) the difference between the value of the dwelling without the defect and the value 1.15of the dwelling with the defect. 1.16    Subd. 2. Home improvement warranty. Upon breach of any warranty imposed by 1.17section 327A.02, subdivision 3, the owner shall have a cause of action against the home 1.18improvement contractor for damages arising out of the breach, or for specific performance. new text begin new text end 1.19 new text begin If the owner is the prevailing party, the owner may also be awarded the owner's costs, new text end 1.20 new text begin disbursements, and reasonable attorney fees. new text end Damages shall be limited to the amount 1.21necessary to remedy the defect or breach. 1.22    Sec. 2. new text begin HOMEOWNER WARRANTY DISPUTE RESOLUTION; REPORT TO new text end 1.23 new text begin THE LEGISLATURE. new text end 2.1 new text begin The commissioner of labor and industry and the commissioner of commerce shall new text end 2.2 new text begin consult with interested parties to review the homeowner warranty statutes in Minnesota new text end 2.3 new text begin Statutes, chapter 327A, for purposes of developing a timely and prescriptive process for new text end 2.4 new text begin resolving homeowner warranty disputes that promotes resolution of warranty claims new text end 2.5 new text begin without litigation. The interested parties to be consulted include, but are not limited to: new text end 2.6 new text begin (1) the construction section of the state bar association; new text end 2.7 new text begin (2) the Builders Association of Minnesota; new text end 2.8 new text begin (3) the Association of General Contractors; new text end 2.9 new text begin (4) representatives of homeowners and consumers; and new text end 2.10 new text begin (5) any other interested parties. new text end 2.11 new text begin By January 15, 2010, the commissioner of labor and industry shall report to the chairs and new text end 2.12 new text begin ranking minority members of the legislative committees with jurisdiction over homeowner new text end 2.13 new text begin warranty statutes. The report must include recommendations for changes in the law to new text end 2.14 new text begin promote resolution of homeowner warranty disputes. new text end 2.15    Sec. 3. new text begin EFFECTIVE DATE; APPLICATION. new text end 2.16 new text begin Section 1 is effective the day following final enactment and applies to causes of new text end 2.17 new text begin action pending on, or commenced on or after, that date. new text end