HB 1899

1
A bill to be entitled
2An act relating to construction defects; amending s.
3558.001, F.S.; revising legislative findings and
4declarations; amending s. 558.002, F.S.; revising
5definitions; amending s. 558.003, F.S.; providing
6requirements for filing actions alleging construction
7defects; requiring abatement, upon timely motion, of
8certain actions filed that do not comply with certain
9requirements; amending s. 558.004, F.S.; revising
10requirements, procedures, criteria, and limitations in
11provisions relating to notice and opportunity to repair
12construction defects in certain structures; providing
13requirements and procedures for making, accepting, or
14rejecting settlement offers; providing for consequences of
15certain actions relating to settlement offers; specifying
16legal obligation to make certain repairs or monetary
17payments under certain circumstances; providing a mutual
18duty to exchange certain discoverable evidence; providing
19requirements and limitations; amending s. 558.005, F.S.;
20revising certain contract content provisions; providing a
21notice form; providing application; providing
22severability; providing an effective date.
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  Section 558.001, Florida Statutes, is amended
27to read:
28     558.001  Legislative findings and declaration.--The
29Legislature finds that it is beneficial to have an alternative
30method to resolve construction disputes that would reduce the
31need for litigation as well as protect the rights of homeowners.
32An effective alternative dispute resolution mechanism in certain
33construction defect matters should involve the claimant filing a
34notice of claim with the contractor, subcontractor, supplier, or
35design professional that the claimant asserts is responsible for
36the defect, and should provide the contractor, subcontractor,
37supplier, or design professional with an opportunity to resolve
38the claim without resort to further legal process.
39     Section 2.  Section 558.002, Florida Statutes, is amended
40to read:
41     558.002  Definitions.--As used in this chapter act, the
42term:
43     (1)  "Action" means any civil action or arbitration
44proceeding for damages or indemnity asserting a claim for damage
45to or loss of a dwelling or personal property caused by an
46alleged construction defect, but does not include any
47administrative action or any civil action or arbitration
48proceeding asserting a claim for alleged personal injuries
49arising out of an alleged construction defect.
50     (2)  "Association" has the same meaning as in s.
51718.103(2), s. 719.103(2), s. 720.301(7), or s. 723.025.
52     (3)  "Claimant" means a homeowner, including a subsequent
53purchaser, tenant, or association, who asserts a claim for
54damages against a contractor, subcontractor, supplier, or design
55professional concerning a construction defect or a subsequent
56owner who asserts a claim for indemnification for such damages.
57The term does not include a contractor, subcontractor, supplier,
58or design professional.
59     (4)  "Construction defect" means a deficiency in, or a
60deficiency arising out of, the design, specifications,
61surveying, planning, supervision, observation of construction,
62or construction, repair, alteration, or remodeling of a
63dwelling, any appurtenance to the dwelling, or the real property
64to which the dwelling or appurtenance is affixed resulting from:
65     (a)  Defective material, products, or components used in
66the construction or remodeling;
67     (b)  A violation of the applicable codes in effect at the
68time of construction or remodeling which gives rise to a cause
69of action pursuant to s. 553.84;
70     (c)  A failure of the design of a dwelling to meet the
71applicable professional standards of care at the time of
72governmental approval; or
73     (d)  A failure to construct or remodel a dwelling in
74accordance with accepted trade standards for good and
75workmanlike construction at the time of construction.
76     (5)  "Contractor" means any person, as defined in s. 1.01,
77firm, partnership, corporation, association, or other
78organization that is legally engaged in the business of
79designing, developing, constructing, manufacturing, repairing
80selling, or remodeling dwellings or attachments thereto.
81     (6)  "Design professional" means a person, as defined in s.
821.01, licensed in this state as an architect, interior designer,
83landscape architect, engineer, or surveyor.
84     (7)  "Dwelling" means a single-family house, manufactured
85or modular home, duplex, triplex, quadruplex, or other
86multifamily unit in a multifamily residential building designed
87for residential use in which title to each individual unit is
88transferred to the owner under a condominium or cooperative
89system and includes common areas and improvements that are owned
90or maintained by an association or by members of an association,
91and also includes the systems, other components, and
92improvements, and other structures or facilities, including, but
93not limited to, recreational structures or facilities, that are
94appurtenant to and located on the real property on which the
95house, duplex, triplex, quadruplex, or other multifamily unit is
96located, but are not necessarily part of the structure at the
97time of completion of construction.
98     (8)  "Service" means personal service or delivery by
99certified mail, return receipt requested, to the last known
100address of the addressee.
101     (9)  "Subcontractor" means a person, as defined in s. 1.01,
102who is a contractor who performs labor and supplies material
103work on behalf of another contractor in the construction or
104remodeling of a dwelling.
105     (10)  "Supplier" means a person, as defined in s. 1.01, who
106provides only materials, equipment, or other supplies for the
107construction or remodeling of a dwelling.
108     Section 3.  Section 558.003, Florida Statutes, is amended
109to read:
110     558.003  Action; compliance abatement.--If A claimant may
111not file files an action subject to this chapter without first
112complying with the requirements of this chapter. If a claimant
113files an action alleging a construction defect without first
114complying with the requirements of this chapter act, on timely
115motion by a party to the action the court shall abate the
116action, without prejudice, and the action may not proceed until
117the claimant has complied with such requirements.
118     Section 4.  Section 558.004, Florida Statutes, is amended
119to read:
120     558.004  Notice and opportunity to repair.--
121     (1)  In actions brought alleging a against a contractor,
122subcontractor, supplier, or design professional related to an
123alleged construction defect, the claimant shall, at least no
124later than 60 days before filing an action involving a single-
125family home, an association representing 20 or fewer residential
126parcels, a manufactured or modular home, a duplex, a triplex, or
127a quadruplex, or at least 120 days before filing an action
128involving an association representing more than 20 residential
129parcel owners, serve written notice of claim on the contractor,
130subcontractor, supplier, or design professional, as applicable,
131which notice shall refer to this chapter. If the construction
132defect claim arises from work performed under a contract, the
133written notice of claim must be served on the person with whom
134the claimant contracted. The notice of claim must describe the
135claim in reasonable detail sufficient to determine the general
136nature of each alleged construction defect and a description of
137the damage or loss resulting from the defect, if known. The
138claimant shall endeavor to serve the notice of claim within 15
139days after discovery of an alleged defect, but the failure to
140serve notice of claim within 15 days does not bar the filing of
141an action, subject to s. 558.003. This subsection does not
142preclude a claimant from filing an action sooner than 60 days,
143or 120 days as applicable, after service of written notice as
144expressly provided in subsection (6), subsection (7), or
145subsection (8).
146     (2)  Within 30 5 business days after receipt service of the
147notice of claim, the contractor, subcontractor, supplier, or
148design professional may inspect involving a single-family home,
149an association representing 20 or fewer residential parcels, a
150manufactured or modular home, a duplex, a triplex, or a
151quadruplex, or within 50 days after receipt of the notice of
152claim involving an association representing more than 20
153residential parcels, the person receiving the notice of claim
154under subsection (1) is entitled to perform a reasonable
155inspection of the dwelling or of each unit subject to the claim
156to assess each alleged construction defect. An association's
157right to access property for either maintenance or repair
158includes the authority to grant access for the inspection. The
159claimant shall provide the person receiving the notice under
160subsection (1) and such person's contractor, subcontractor,
161supplier, or design professional and its contractors or agents
162reasonable access to the dwelling during normal working hours to
163inspect the dwelling to determine the nature and cause of each
164alleged construction defect and the nature and extent of any
165repairs or replacements necessary to remedy each defect. The
166person receiving notice under subsection (1) shall reasonably
167coordinate the timing and manner of any and all inspections with
168the claimant to minimize the number of inspections. The
169inspection may include destructive testing by mutual agreement
170under the following reasonable terms and conditions:
171     (a)  If the person receiving notice under subsection (1)
172determines that destructive testing is necessary to determine
173the nature and cause of the alleged defects, such person shall
174notify the claimant in writing.
175     (b)  The notice shall describe the destructive testing to
176be performed, the person selected to do the testing, the
177estimated anticipated damage and repairs to the dwelling
178resulting from the testing, the estimated amount of time
179necessary for the testing and to complete the repairs, and the
180financial responsibility offered for covering the costs of
181repairs.
182     (c)  If the claimant promptly objects to the person
183selected to perform the destructive testing, the person
184receiving notice under subsection (1) shall provide the
185claimant with a list of  three qualified persons from which the
186claimant may select one such person to perform the testing. The
187person selected to perform the testing shall operate as an
188agent or subcontractor of the person receiving notice under
189subsection (1) and shall communicate with, submit any reports
190to and be solely responsible to the person receiving notice.
191     (d)  The testing shall be done at a mutually agreeable
192time.
193     (e)  The claimant or a representative of the claimant may
194be present to observe the destructive testing.
195     (f)  The destructive testing shall not render the
196dwelling uninhabitable.
197
198In the event the claimant fails or refuses to agree to
199destructive testing, the claimant shall have no claim for
200damages which could have been avoided or mitigated had
201destructive testing been allowed when requested and had a
202feasible remedy been promptly implemented. . Prior to
203performing any destructive testing, the person who desires to
204perform the testing shall notify the claimant in writing of the
205type of testing to be performed, the anticipated damage to the
206dwelling which will be caused by the testing, and the
207anticipated repairs that will be necessary to repair any damage
208caused by the testing. The person performing the testing is
209responsible for repairing any damage to the dwelling caused by
210the testing.
211     (3)  Within 10 days after receipt service of the notice of
212claim involving a single-family home, an association
213representing 20 or fewer residential parcels, a manufactured or
214modular home, a duplex, a triplex, or a quadruplex, or within 30
215days after receipt of the notice of claim involving an
216association representing more than 20 residential parcels, the
217person receiving the notice under subsection (1) may contractor,
218subcontractor, supplier, and design professional must forward a
219copy of the notice of claim to each contractor, subcontractor,
220supplier, or design professional whom it reasonably believes is
221responsible for each defect specified in the notice of claim and
222shall note the specific defect for which it believes the
223particular contractor, subcontractor, supplier, or design
224professional is responsible. Each such contractor,
225subcontractor, supplier, and design professional may inspect the
226dwelling as provided in subsection (2) within 5 business days
227after receiving a copy of the notice.
228     (4)  Within 15 5 business days after receiving a copy of
229the notice of claim pursuant to subsection (3) involving a
230single-family home, an association representing 20 or fewer
231residential parcels, a manufactured or modular home, a duplex, a
232triplex, or a quadruplex, or within 30 days after receipt of the
233copy of the notice of claim involving an association
234representing more than 20 residential parcels, the contractor,
235subcontractor, supplier, or design professional must serve a
236written response to the person contractor, subcontractor,
237supplier, or design professional who forwarded served a copy of
238the notice of claim. The written response shall include a
239report, if any, of the scope of any inspection of the dwelling,
240the findings and results of the inspection, a statement of
241whether the contractor, subcontractor, supplier, or design
242professional is willing to make repairs to the dwelling or
243whether such he or she disputes the claim is disputed, a
244description of any repairs they are he or she is willing to make
245to remedy the alleged construction defect, and a timetable for
246the completion of such repairs.
247     (5)  Within 45 25 days after receiving the notice of claim
248involving a single-family home, an association representing 20
249or fewer residential parcels, a manufactured or modular home, a
250duplex, a triplex, or a quadruplex, or within 75 days after
251receipt of a copy of the notice of claim involving an
252association representing more than 20 residential parcels, the
253person who received notice under subsection (1) each contractor,
254subcontractor, supplier, or design professional must serve a
255written response to the claimant. The response shall be served
256to the attention of the person who signed the notice of claim,
257unless otherwise designated in the notice of claim. The written
258response must provide:
259     (a)  A written offer to remedy the alleged construction
260defect at no cost to the claimant, including a report of the
261scope of the inspection, the findings and results of the
262inspection, a detailed description of the proposed repairs
263necessary to remedy the defect, and a timetable for the
264completion of such repairs;
265     (b)  A written offer to compromise and settle the claim by
266monetary payment, that will not obligate the person's insurer,
267and a timetable for making payment to be paid within 30 days
268after the claimant's acceptance of the offer; or
269     (c)  A written offer to compromise and settle the claim by
270a combination of repairs and monetary payment, that will not
271obligate the person's insurer, that includes a detailed
272description of the proposed repairs and a timetable for the
273completion of such repairs and making payment;
274     (d)(c)  A written statement that the person contractor,
275subcontractor, supplier, or design professional disputes the
276claim and will not remedy the defect or compromise and settle
277the claim; or.
278     (e)  A written statement that a monetary payment, including
279insurance proceeds, if any, will be determined by the person's
280insurer within 30 days after notification to the insurer by
281means of forwarding the claim, which notification shall occur at
282the same time the claimant is notified of this settlement
283option, which the claimant can accept or reject. A written
284statement under this paragraph may also include an offer under
285paragraph (c), but such offer shall be contingent upon the
286claimant also accepting the determination of the insurer whether
287to make any monetary payment, in addition thereto. If the
288insurer for the person receiving the claim makes no response
289within the 30 days following notification, then the claimant
290shall be deemed to have met all conditions precedent to
291commencing an action.
292     (6)  If the contractor, subcontractor, supplier, or design
293professional offers to remedy the alleged construction defect or
294compromise and settle the claim by monetary payment, the written
295response must contain a statement that the claimant shall be
296deemed to have accepted the offer if, within 15 days, or 45 days
297for an association, after service to the written response, the
298claimant does not serve a written rejection of the offer on the
299contractor, subcontractor, supplier, or design professional.
300     (6)(7)  If the person receiving a notice of claim pursuant
301to subsection (1) contractor, subcontractor, supplier, or design
302professional disputes the claim and will neither remedy the
303defect nor compromise and settle the claim, or does not respond
304to the claimant's notice of claim within the time provided in
305subsection (5), the claimant may, without further notice,
306proceed with an action against that person the contractor,
307subcontractor, supplier, or design professional for the claim
308described in the notice of claim. Nothing in this chapter shall
309be construed to preclude a partial settlement or compromise of
310the claim as agreed to by the parties and, in that event, the
311claimant may, without further notice, proceed with an action on
312the unresolved portions of the claim.
313     (7)(8)  A claimant who receives rejects a timely settlement
314offer must accept or reject the offer made by serving the
315contractor, subcontractor, supplier, or design professional must
316serve written notice of such acceptance or rejection on the
317person making the offer contractor, subcontractor, supplier, or
318design professional within 15 days, or 45 days for an
319association, after receiving service of the settlement offer. If
320a claimant initiates an action without first accepting or
321rejecting the offer, the court shall abate the action upon
322timely motion until the claimant complies with this subsection.
323The claimant's rejection must contain the settlement offer with
324the word "rejected" printed on it. After service of the
325rejection, the claimant may proceed with an action against the
326contractor, subcontractor, supplier, or design professional for
327the claims in the notice of claim without further notice.
328     (8)(9)  If the claimant timely and properly accepts the
329offer to repair an alleged construction defect, the claimant
330shall provide the offeror and the offeror's agents reasonable
331access to the claimant's dwelling during normal working hours to
332perform the repair by the agreed-upon timetable as stated in the
333offer. If the offeror of a contractor, subcontractor, supplier,
334or design professional and the contractor, subcontractor,
335supplier, or design professional does not make the payment or
336repair the defect within the agreed time and in the agreed
337manner, except for reasonable delays beyond the control of the
338offeror, including, but not limited to, weather conditions,
339delivery of materials, claimant's actions, or issuance of any
340required permits, the claimant may, without further notice,
341proceed with an action against the offeror based upon
342contractor, subcontractor, supplier, or design professional for
343the claim in the notice of claim. If the offeror a claimant
344accepts a contractor's, subcontractor's, supplier's, or design
345professional's offer and the contractor, subcontractor,
346supplier, or design professional makes payment or repairs the
347defect within the agreed time and in the agreed manner, the
348claimant is barred from proceeding with an action against the
349contractor, subcontractor, supplier, or design professional for
350the claim described in the notice of claim or as otherwise
351provided in the accepted settlement offer.
352     (10)  If the claimant accepts the offer of a contractor,
353subcontractor, supplier, or design professional to repair an
354alleged construction defect, the claimant shall provide the
355contractor, subcontractor, supplier, or design professional and
356its contractors or other agents reasonable access to the
357claimant's dwelling during normal working hours to perform the
358repair by the agreed-upon timetable as stated in the offer.
359     (9)(11)  The failure of a claimant or a contractor,
360subcontractor, supplier, or design professional to follow the
361procedures in this section is admissible in an action. However,
362This section does not prohibit or limit the claimant from making
363any necessary emergency repairs to the dwelling as are required
364to protect the health, safety, and welfare of the claimant. In
365addition, any the offer or failure to offer pursuant to
366subsection (5) of a contractor, subcontractor, supplier, or
367design professional to remedy an alleged construction defect or
368to compromise and settle the claim by monetary payment does not
369constitute an admission of liability with respect to the defect
370and is not admissible in an action brought under this chapter.
371     (10)(12)  A claimant's mailing of the written notice of
372claim under subsection (1) tolls the applicable statute of
373limitations relating to any person covered by this chapter and
374any bond surety until the later of:
375     (a)  Ninety Sixty days, or 120 days, as applicable, after
376receipt of the contractor, subcontractor, supplier, or design
377professional receives the notice of claim pursuant to subsection
378(1); or
379     (b)  Thirty days after the end of the repair period or
380payment period stated in the offer, if the claimant has accepted
381the offer. By stipulation of the parties, the period may be
382extended and the statute of limitations is tolled during the
383extension.
384     (11)(13)  The procedures in this chapter section apply to
385each alleged construction defect. However, a claimant may
386include multiple defects in one notice of claim. The initial
387list of construction defects may be amended by the claimant to
388identify additional or new construction defects as they become
389known to the claimant. The court shall allow the action to
390proceed to trial only as to alleged construction defects that
391were noticed and for which the claimant has complied with this
392chapter and as to construction defects reasonably related to, or
393caused by, the construction defects previously noticed. Nothing
394in this subsection shall preclude subsequent or further actions.
395     (12)(14)  This chapter does Sections 558.001-558.003 of
396this act do not:
397     (a)  Bar or limit any rights, including the right of
398specific performance to the extent such right would be available
399in the absence of this act, any causes of action, or any
400theories on which liability may be based, except as specifically
401provided in this chapter act;
402     (b)  Bar or limit any defense, or create any new defense,
403except as specifically provided in this chapter act; or
404     (c)  Create any new rights, causes of action, or theories
405on which liability may be based.
406     (13)  Nothing in this section shall relieve the person
407receiving notice of claim under subsection (1) from complying
408with all contractual provisions of any liability insurance
409policy as a condition precedent to coverage for any claim under
410this section. However, notwithstanding the foregoing or any
411contractual provision, the providing of a copy of such notice to
412the person's insurer, if applicable, shall not constitute a
413claim for insurance purposes. Nothing in this section shall be
414construed to impair technical notice provisions or requirements
415of the liability policy or alter, amend, or change existing
416Florida law relating to rights between insureds and insurers
417except as otherwise specifically provided herein.
418     (14)(15)  To the extent that an arbitration clause in a
419contract for the sale, design, construction, or remodeling of a
420dwelling conflicts with this section, this section shall
421control.
422     (15)  Upon request, the claimant and the person receiving
423notice pursuant to subsection (1) shall have a mutual duty to
424exchange all available discoverable evidence relating to the
425construction defects, including, but not limited to, expert
426reports, photographs, information received pursuant to
427subsection (4), and videotapes, if any. In the event of
428subsequent litigation, any party who failed to provide such
429evidence shall be subject to such sanctions as the court may
430impose for a discovery violation. Expert reports exchanged
431between the parties may not be used in any subsequent litigation
432for any purpose, unless the expert, or a person affiliated with
433the expert, testifies as a witness or the report is used or
434relied upon by an expert who testifies on behalf of the party
435for whom the report was prepared.
436     Section 5.  Section 558.005, Florida Statutes, is amended
437to read:
438     558.005  Contract of sale; provisions; application.--
439     (1)  Except as otherwise provided in subsections (3) and
440(4), the provisions of this chapter shall control every contract
441for the design, construction, or remodeling of a dwelling
442entered into on or after July 1, 2004, which contains the notice
443as set forth in subsection (2) and is conspicuously set forth in
444capitalized letters Upon entering into a contract for the sale,
445design, construction, or remodeling of a dwelling, the
446contractor, subcontractor, supplier, or design professional
447shall provide notice to the owner of the dwelling of the
448contractor's, subcontractor's, supplier's, or design
449professional's right to offer to cure construction defects or
450pay to settle alleged construction defects before a claimant may
451commence an action against the contractor, subcontractor,
452supplier, or design professional. Such notice must be
453conspicuous and may be included as part of the contract.
454     (2)  The notice required by subsection (1) must be in
455substantially the following form:
456
457
CHAPTER 558 NOTICE OF CLAIM
458     CHAPTER 558, FLORIDA STATUTES LAW CONTAINS IMPORTANT
459REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY BRING ANY LEGAL
460ACTION FILE A LAWSUIT FOR DEFECTIVE CONSTRUCTION AGAINST A
461CONTRACTOR, SUBCONTRACTOR, SUPPLIER, OR DESIGN PROFESSIONAL FOR
462AN ALLEGED CONSTRUCTION DEFECT IN YOUR HOME. SIXTY DAYS BEFORE
463YOU BRING ANY LEGAL ACTION FILE YOUR LAWSUIT, YOU MUST DELIVER
464TO THE OTHER PARTY TO THIS CONTRACT CONTRACTOR, SUBCONTRACTOR,
465SUPPLIER, OR DESIGN PROFESSIONAL A WRITTEN NOTICE REFERRING TO
466CHAPTER 558 OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE
467DEFECTIVE AND PROVIDE SUCH PERSON YOUR CONTRACTOR AND ANY
468SUBCONTRACTORS, SUPPLIERS, OR DESIGN PROFESSIONALS THE
469OPPORTUNITY TO INSPECT THE ALLEGED CONSTRUCTION DEFECTS AND TO
470CONSIDER MAKING MAKE AN OFFER TO REPAIR OR PAY FOR THE ALLEGED
471CONSTRUCTION DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER
472WHICH MAY BE MADE BY THE CONTRACTOR OR ANY SUBCONTRACTORS,
473SUPPLIERS, OR DESIGN PROFESSIONALS. THERE ARE STRICT DEADLINES
474AND PROCEDURES UNDER THIS FLORIDA LAW WHICH MUST BE MET AND
475FOLLOWED TO PROTECT YOUR INTERESTS.
476     (3)  After receipt of the initial notice of claim, a
477claimant and the person receiving notice under s. 558.004(1)
478may, by written mutual agreement, alter the procedure for the
479notice of claim process described in this chapter.
480     (4)  This chapter applies to all actions accruing on or
481after July 1, 2004, and all actions commenced on or after such
482date, regardless of the date of sale, issuance of a certificate
483of occupancy or its equivalent, or substantial completion of the
484dwelling. Notwithstanding the notice requirements of this
485section for contracts entered into on or after July 1, 2004,
486this chapter applies to all actions accruing before July 1,
4872004, but not yet commenced as of July 1, 2004, and failure to
488include the notice requirements of this section in a contract
489entered into prior to July 1, 2004, does not operate to bar the
490procedures of this chapter from applying to all such actions.
491     Section 6.  If any provision of this act or the application
492thereof to any person or circumstance is held invalid, the
493invalidity does not affect other provisions or applications of
494this act which can be given effect without the invalid provision
495or application, and to this end the provisions of this act are
496declared severable.
497     Section 7.  This act shall take effect July 1, 2004.


CODING: Words stricken are deletions; words underlined are additions.