Florida Senate - 2012 COMMITTEE AMENDMENT Bill No. SB 1196 Barcode 672482 LEGISLATIVE ACTION Senate . House Comm: RCS . 01/23/2012 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Community Affairs (Bennett) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 553.835, Florida Statutes, is created to 6 read: 7 553.835 Implied warranties.— 8 (1) The Legislature finds that the courts have reached 9 different conclusions concerning the scope and extent of the 10 common law doctrine of implied warranty of fitness and 11 merchantability or habitability for improvements immediately 12 supporting the structure of a new home, which creates 13 uncertainty in the state’s fragile real estate and construction 14 industry. 15 (2) It is the intent of the Legislature to affirm the 16 limitations to the doctrine of implied warranty of fitness and 17 merchantability or habitability associated with the construction 18 and sale of a new home. 19 (3) As used in this section, the term “offsite improvement” 20 means the street, road, sidewalk, drainage, utilities, or any 21 other improvement or structure that is not located on or under 22 the lot on which a new home is constructed, or that is located 23 on or under the lot but that does not immediately and directly 24 support the fitness and merchantability or habitability of the 25 home itself. 26 (4) There is no cause of action in law or equity available 27 to a purchaser of a home or to a homeowners’ association based 28 upon the doctrine or theory of implied warranty of fitness and 29 merchantability or habitability for damages to offsite 30 improvements. However, this section does not alter or limit the 31 existing rights of purchasers of homes or homeowners’ 32 associations to pursue any other cause of action arising from 33 defects in offsite improvements based upon contract, tort, or 34 statute. 35 Section 2. If any provision of the act or its application 36 to any person or circumstance is held invalid, the invalidity 37 does not affect other provisions or applications of the act 38 which can be given effect without the invalid provision or 39 application, and to this end the provisions of this act are 40 severable. 41 Section 3. This act shall take effect July 1, 2012, and 42 applies to all cases accruing before, pending on, or filed after 43 that date. 44 45 ================= T I T L E A M E N D M E N T ================ 46 And the title is amended as follows: 47 Delete everything before the enacting clause 48 and insert: 49 A bill to be entitled 50 An act relating to residential construction 51 warranties; creating s. 553.835, F.S.; providing 52 legislative findings; providing legislative intent to 53 affirm the limitations to the doctrine of implied 54 warranty of fitness and merchantability or 55 habitability associated with the construction and sale 56 of a new home; providing a definition; prohibiting a 57 cause of action in law or equity based upon the 58 doctrine of implied warranty of fitness and 59 merchantability or habitability for offsite 60 improvements; providing that the existing rights of 61 purchasers of homes or homeowners’ associations to 62 pursue certain causes of action are not altered or 63 limited; providing for applicability of the act; 64 providing for severability; providing an effective 65 date. 66 67 WHEREAS, the Legislature recognizes and agrees with the 68 limitations on the applicability of the doctrine of implied 69 warranty of fitness and merchantability or habitability for a 70 new home as established in the seminal cases of Gable v. Silver, 71 258 So.2d 11 (Fla. 4th DCA 1972) adopted and cert. dism, 264 72 So.2d 418 (Fla. 1972); Conklin v. Hurley, 428 So.2d 654 (Fla. 73 1983); and Port Sewall Harbor & Tennis Club Owners Ass’n v. 74 First Fed. S. & L. Ass’n., 463 So.2d 530 (Fla. 4th DCA 1985), 75 and does not wish to expand any prospective rights, 76 responsibilities, or liabilities resulting from these decisions, 77 and 78 WHEREAS, the recent decision by the Fifth District Court of 79 Appeal rendered in October of 2010, in Lakeview Reserve 80 Homeowners et. al. v. Maronda Homes, Inc., et. al., 48 So.3d 902 81 (Fla. 5th DCA, 2010), expands the doctrine of implied warranty 82 of fitness and merchantability or habitability for a new home to 83 the construction of roads, drainage systems, retention ponds, 84 and underground pipes, which the court described as essential 85 services, supporting a new home, and 86 WHEREAS, the Legislature finds, as a matter of public 87 policy, that the Maronda case goes beyond the fundamental 88 protections that are necessary for a purchaser of a new home and 89 that form the basis for imposing an implied warranty of fitness 90 and merchantability or habitability for a new home, and creates 91 uncertainty in the state’s fragile real estate and construction 92 industry, and 93 WHEREAS, it is the intent of the Legislature to reject the 94 decision by the Fifth District Court of Appeal in the Maronda 95 case insofar as it expands the doctrine of implied warranty and 96 fitness and merchantability or habitability for a new home to 97 include essential services as defined by the court, NOW 98 THEREFORE,