Minnesota Legislature
SF 1100
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to civil actions; providing relief and
protections for construction and home improvement
defects; amending Minnesota Statutes 2004, sections
327A.01, subdivision 2; 327A.03; 327A.04; 327A.08;
514.011, subdivision 2; proposing coding for new law
in Minnesota Statutes, chapter 337.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 327A.01,
subdivision 2, is amended to read:
Subd. 2.
Building standards.
"Building standards" meansnew text begin :
new text end
new text begin
(1) at a minimum,new text end the materials and installation standards
of the State Building Code, adopted by the commissioner of
administration pursuant to sections 16B.59 to 16B.75, in effect
at the time of the construction or remodelingnew text begin ; and
new text end
new text begin
(2) generally accepted standards of workmanship prevailing
in the geographic area in which the dwelling is locatednew text end .
Sec. 2.
Minnesota Statutes 2004, section 327A.03, is
amended to read:
327A.03 EXCLUSIONS.
The liability of the vendor or the home improvement
contractor under sections 327A.01 to 327A.07 is limited to the
specific items set forth in sections 327A.01 to 327A.07 and does
not extend to the following:
(a) loss or damage not reported by the vendee or the owner
to the vendor or the home improvement contractor deleted text begin in writing
deleted text end
within deleted text begin six months deleted text end new text begin one year new text end after the vendee or the owner
discovers or should have discovered the loss or damage;
(b) loss or damage caused by defects in design,
installation, or materials which the vendee or the owner
supplied, installed, or directed to be installed;
(c) secondary loss or damage such as personal injury or
property damage;
(d) loss or damage from normal wear and tear new text begin for the
geographic area in which the dwelling is locatednew text end ;
(e) loss or damage from normal shrinkage caused by drying
of the dwelling deleted text begin or the home improvement within tolerances of
building standards deleted text end new text begin if the wood moisture equivalent is less than
or equal to 15 percent in the building materials at the time of
constructionnew text end ;
(f) loss or damage from dampness and condensation due to
insufficient ventilation after occupancynew text begin , except to the extent
the loss or damage was from improper or defective constructionnew text end ;
(g) loss or damage from negligence, improper maintenance or
alteration of the dwelling or the home improvement by parties
other than the vendor deleted text begin or deleted text end new text begin ,new text end the home improvement contractornew text begin , or a
subcontractornew text end ;
(h) loss or damage from changes in grading of the ground
around the dwelling or the home improvement by parties other
than the vendor or the home improvement contractor new text begin unless the
grade changes are the result of inadequate subgrade preparationnew text end ;
(i) deleted text begin landscaping or deleted text end insect loss or damage new text begin unless insect
access to the dwelling is due to a construction defect or the
result of unsealed penetrationnew text end ;
new text begin
(j) landscaping loss or damage not resulting from improper
grading or soil conditions;
new text end
deleted text begin
(j) deleted text end new text begin (k) new text end loss or damage from failure to maintain the
dwelling or the home improvement in good repair;
deleted text begin
(k) deleted text end new text begin (l) new text end loss or damage which the vendee or the owner,
whenever feasible, has not taken timely action to minimize;
deleted text begin
(l) deleted text end new text begin (m) new text end loss or damage which occurs after the dwelling or
the home improvement is no longer used primarily as a residence;
deleted text begin
(m) deleted text end new text begin (n) new text end accidental loss or damage usually described as acts
of God, including, but not limited to: fire, explosion, smoke,
water escape, windstorm, hail or lightning, falling trees,
aircraft and vehicles, flood, and earthquake, except when the
loss or damage is caused by failure to comply with building
standards;
deleted text begin
(n) deleted text end new text begin (o) new text end loss or damage from soil movement which is
compensated by legislation or covered by insurance;
deleted text begin
(o) deleted text end new text begin (p) new text end loss or damage due to soil conditions where
construction is done upon lands owned by the vendee or the owner
and obtained by the vendee or owner from a source independent of
the vendor or the home improvement contractornew text begin , but only if the
contractor or subcontractor has warned the homeowner, in
writing, of the soil conditionsnew text end ;
deleted text begin
(p) deleted text end new text begin (q) new text end in the case of home improvement work, loss or
damage due to defects in the existing structure and systems not
caused by the home improvement.
Sec. 3.
Minnesota Statutes 2004, section 327A.04, is
amended to read:
327A.04 WAIVER AND MODIFICATION LIMITED.
Subdivision 1. Except as provided in deleted text begin subdivisions
deleted text end new text begin
subdivision new text end 2 deleted text begin and 3deleted text end , the provisions of sections 327A.01 to
327A.07 cannot be waived or modified by contract or otherwise.
Any agreement which purports to waive or modify the provisions
of sections 327A.01 to 327A.07, except as provided
in deleted text begin subdivisions deleted text end new text begin subdivision new text end 2 deleted text begin and 3 of this sectiondeleted text end , shall be
void.
Subd. 2. deleted text begin At any time after a contract for the sale of a
dwelling is entered into by and between a vendor and a vendee or
a contract for home improvement work is entered into by and
between a home improvement contractor and an owner, any of the
statutory warranties provided for in section 327A.02 may be
excluded or modified only by a written instrument, printed in
boldface type of a minimum size of ten points, which is signed
by the vendee or the owner and which sets forth in detail the
warranty involved, the consent of the vendee or the owner, and
the terms of the new agreement contained in the writing. No
exclusion or modification shall be effective unless the vendor
or the home improvement contractor provides substitute express
warranties offering substantially the same protections to the
vendee or the owner as the statutory warranties set forth in
section 327A.02. Any modification or exclusion agreed to by
vendee and vendor or the owner and home improvement contractor
pursuant to this subdivision shall not require the approval of
the commissioner of administration pursuant to section 327A.07.
deleted text end
deleted text begin
Subd. 3.deleted text end If a major construction defect is discovered
prior to the sale of a dwelling, the statutory warranty set
forth in section 327A.02, subdivision 1, clause (c) may be
waived for the defect identified in the waiver instrument, after
full oral disclosure of the specific defect, by an instrument
which sets forth in detail: the specific defect; the difference
between the value of the dwelling without the defect and the
value of the dwelling with the defect, as determined and
attested to by an independent appraiser, contractor, insurance
adjuster, engineer or any other similarly knowledgeable person
selected by the vendee; the price reduction; the date the
construction was completed; the legal description of the
dwelling; the consent of the vendee to the waiver; and the
signatures of the vendee, the vendor, and two witnesses.
A single waiver agreed to pursuant to this subdivision may
not apply to more than one major construction defect in a
dwelling.
The waiver shall not be effective unless filed for
recording with the county recorder or registrar of titles who
shall file the waiver for record.
Sec. 4.
Minnesota Statutes 2004, section 327A.08, is
amended to read:
327A.08 LIMITATIONS.
Notwithstanding any other provision of sections 327A.01 to
327A.07:
(a) the terms of the home improvement warranties required
by sections 327A.01 to 327A.07 commence upon completion of the
home improvement deleted text begin and the term shall deleted text end new text begin , may not be waived by either
party, and must new text end not be required to be renewed or extended if the
home improvement contractor performs additional improvements
required by warranty;
(b) the home improvement warranties required by sections
327A.01 to 327A.07 shall not include products or materials
installed that are already covered by implied or written
warranty; and
(c) the home improvement warranties required by sections
327A.01 to 327A.07 are intended to deleted text begin be implied warranties
imposing deleted text end new text begin impose new text end an affirmative obligation upon home improvement
contractorsdeleted text begin , and sections 327A.01 to 327A.07 do not require that
deleted text end new text begin
to create and convey new text end written warranty instruments deleted text begin be created and
conveyed deleted text end to the owner.
Sec. 5.
new text begin
[337.11] RESIDENTIAL BUILDING AND CONSTRUCTION
CONTRACTS; ARBITRATION PROVISIONS.
new text end
new text begin
No residential building and construction contract
containing any clause or provision requiring the parties to
submit any controversy to arbitration shall preclude any party
or beneficiary under the contract from instituting suit or legal
action on the contract at any time. Compliance with such a
clause or provision must not be a condition precedent to the
right to bring or recover in the action. A party is bound by an
arbitration provision only when the party elects to arbitrate
and a lawful and binding arbitration follows.
new text end
new text begin
For purposes of this section, "residential building and
construction contract" means a contract for the design,
construction, alteration, improvement, or maintenance of a new
or existing building constructed for habitation by one to four
families, including attached garages.
new text end
Sec. 6.
Minnesota Statutes 2004, section 514.011,
subdivision 2, is amended to read:
Subd. 2.
Subcontractor to give notice.
(a) Every person
who contributes to the improvement of real property so as to be
entitled to a lien pursuant to section 514.01, except a party
under direct contract with the owner must, as a necessary
prerequisite to the validity of any claim or lien, cause to be
given to the owner or the owner's authorized agent, either by
personal delivery or by certified mail, deleted text begin not later than 45 days
after deleted text end new text begin before new text end the lien claimant has first furnished labor, skill
or materials for the improvement, a written notice in at least
10-point bold type, if printed, or in capital letters, if
typewritten, which shall state:
"This notice is to advise you of your rights under
Minnesota law in connection with the improvement to your
property.
Any person or company supplying labor or materials for this
improvement may file a lien against your property if that person
or company is not paid for the contributions.
We ......................................................
(name deleted text begin and deleted text end new text begin ,new text end addressnew text begin , and license number new text end of subcontractor)
have been hired by your contractor ......................
(name of your contractor)
to provide ...................... or ............... for
(type of service) (material)
this improvement.
To the best of our knowledge, we estimate our charges
will be .............................. .
(value of service or material)
If we are not paid by your contractor, we can file a claim
against your property for the price of our services.
You have the right to pay us directly and deduct this
amount from the contract price, or withhold the amount due us
from your contractor until 120 days after completion of the
improvement unless your contractor gives you a lien waiver
signed by me (us).
We deleted text begin may not file deleted text end new text begin are prohibited by law from filing new text end a lien if
you paid your contractor in full before receiving this notice.
new text begin
The Minnesota Department of Commerce is the state agency
with responsibility for licensing and regulating residential
contractors.new text end "
(b) A person entitled to a lien does not lose the right to
the lien for failure to strictly comply with this subdivision if
a good faith effort is made to comply, unless the owner or
another lien claimant proves damage as a direct result of the
failure to comply.