DENVER-
Homeowners who signed away their right to sue when they bought a new home would be able to take developers to court under a measure on its way to the governor.
The Senate gave final approval to the measure (House Bill 1338) on Tuesday, sending it to Gov. Bill Ritter. If he signs it into law it would take effect immediately.
The bill’s main opponent, the Colorado Association of Home Builders, plans to lobby Ritter to veto the bill. Four years ago, the association successfully lobbied for a bill that limits how much money homeowners can win in court for construction problems. That law steers homeowners and developers into arbitration first, rather than court, to get the defects fix.
This year’s measure is backed by the Colorado Home Alliance, a homeowners group, which has also gotten donations from Scott Sullan, a lawyer who has filed construction defect lawsuits.
In 2004, Sullan campaigned for a ballot initiative that would gone further than the current bill and lifted limits on damages property owners could seek against builders. Amendment 34 failed after builders said it would lead to higher insurance premiums for the industry, hurt smaller companies and raise home prices.
Clay Vigoda, a lobbyist for the Colorado Home Alliance, said homeowners are being denied their right to sue under that law because all large builders now require buyers to sign contracts waiving that right. He said the only way to avoid such waivers is to buy an expensive, custom-built house.
Since the 2003 passed, he estimates that 170,000 houses were built in Colorado and that most of those buyers waived their right to sue. He estimates about 30,000 could have serious construction defects.
“This is all about the legal rights of Colorado homeowners. All we’re saying is what is written is what you get,” he said.
Rob Nanfelt, a lobbyist for the home builders, said the waivers help keep costs down for builders and for homebuyers by getting construction problems fixed rather than having disputes land in court. He said people sign away their right to sue for things such as the purchase of a car or parking in a parking garage.
“There are always bargains. I just think that’s part of the trade off,” said Nanfelt, who estimates that about 50 construction defect lawsuits have been filed each year under the 2003 law.
