SF 1287

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to real property; regulating causes of action arising out of construction
defects in residential housing; providing for notice and opportunity to repair;
amending Minnesota Statutes 2004, sections 60A.08, subdivision 6; 302A.781,
by adding a subdivision; 322B.863, by adding a subdivision; 327A.02, by adding
subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 60A.08, subdivision 6, is amended to read:

Subd. 6.

Bankruptcy deleted text begin or deleted text end new text begin , new text end insolvency new text begin , or dissolution new text end clause.

Every bond or
policy of insurance issued in this state insuring against either actual loss suffered by the
insured, and imposed by law for damages on account of personal injury, death, or injury
to property caused by accident, or legal liability imposed upon the insured by reason of
such injuries or death, shall, notwithstanding anything in the policy to the contrary, be
deemed to contain the following condition:

The bankruptcy deleted text begin or deleted text end new text begin , new text end insolvency new text begin , or dissolution new text end of the insured shall not relieve the
insurer of any of its obligations under this policy, and in case an execution against the
insured on a final judgment is returned unsatisfied, then such judgment creditor shall have
a right of action on this policy against the company to the same extent that the insured
would have, had the insured paid the final judgment.

Sec. 2.

Minnesota Statutes 2004, section 302A.781, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Statutory homeowner warranty claims preserved. new text end

new text begin The statutory
warranties provided under section 327A.02 are not affected by a dissolution under this
chapter.
new text end

Sec. 3.

Minnesota Statutes 2004, section 322B.863, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Statutory homeowner warranty claims preserved. new text end

new text begin The statutory
warranties provided under section 327A.02 are not affected by a dissolution under this
chapter.
new text end

Sec. 4.

Minnesota Statutes 2004, section 327A.02, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Remedies unaffected by corporate dissolution. new text end

new text begin The statutory
warranties provided in this section are not affected by the dissolution of a vendor or home
improvement contractor that is a corporation or limited liability company.
new text end

Sec. 5.

Minnesota Statutes 2004, section 327A.02, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Response from vendor to notice of claim. new text end

new text begin (a) Following notice under
section 327A.03, the vendee must allow an inspection and opportunity to offer to repair
the known loss or damage. Upon request of the vendee, a court may order the vendor to
conduct the inspection. The inspection must be performed and any offer to repair must be
made in writing to the vendee within 30 days of the vendor's receipt of the written notice
required under section 327A.03, clause (a), alleging loss or damage. The applicable
statute of limitations is tolled from the date the written notice provided by the vendee is
postmarked, or if not sent through the mail, received by the vendor until the earliest of
the following:
new text end

new text begin (1) the date the vendee rejects the vendor's offer to repair;
new text end

new text begin (2) the date the vendor rejects the vendee's claim in writing;
new text end

new text begin (3) failure by the vendor to make an offer to repair within the 30-day period
described in this subdivision; or
new text end

new text begin (4) 180 days.
new text end

new text begin For purposes of this subdivision, "vendor" includes a home improvement contractor.
new text end

new text begin (b) Upon completion of repairs as described in an offer to repair, the vendor must
provide the vendee with a list of the repairs made and a notice that the vendee may have
a right to pursue a warranty claim under this chapter. Provision of this statement is not
an admission of liability. Compliance with this subdivision does not affect any rights
of the vendee under this chapter.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment and apply to actions
pending on or commenced on or after that date, provided that the action is brought within
the time limitation in Minnesota Statutes, section 541.051, subdivision 4.
new text end