DENVER-
A homeowner’s right to sue over construction defects will be protected under a bill that became law Friday.
The law, which takes effect immediately, was a response to the fallout from a law passed in 2003 which steered owners and builders into arbitration first and capped the amount of damages owners could win in court.
Critics said homeowners were being asked at that time to waive their right to sue when signing contracts will major builders in the state. The Colorado Association of Home Builders argued that such waivers kept the cost of housing down by keeping disputes out of court.
Gov. Bill Ritter signed the bill into law because he thought it struck a balance between industry and homeowner concerns, spokesman Evan Dreyer said, and added that Ritter could review the issue if the law led to excessive lawsuits, as Republicans have claimed.
Telephone messages left for the home builders Friday afternoon weren’t immediately returned.
This year’s measure was 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 new law 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.
The new law doesn’t remove the damage caps passed in 2003.
