| 1 | A bill to be entitled |
| 2 | An act relating to construction defects; amending s. |
| 3 | 558.001, F.S.; revising legislative findings and |
| 4 | declarations; amending s. 558.002, F.S.; revising |
| 5 | definitions; amending s. 558.003, F.S.; providing |
| 6 | requirements for filing actions alleging construction |
| 7 | defects; requiring abatement, upon timely motion, of |
| 8 | certain actions filed that do not comply with certain |
| 9 | requirements; amending s. 558.004, F.S.; revising |
| 10 | requirements, procedures, criteria, and limitations in |
| 11 | provisions relating to notice and opportunity to repair |
| 12 | construction defects in certain structures; providing |
| 13 | requirements and procedures for making, accepting, or |
| 14 | rejecting settlement offers; providing for consequences of |
| 15 | certain actions relating to settlement offers; specifying |
| 16 | legal obligation to make certain repairs or monetary |
| 17 | payments under certain circumstances; providing a mutual |
| 18 | duty to exchange certain discoverable evidence; providing |
| 19 | requirements and limitations; amending s. 558.005, F.S.; |
| 20 | revising certain contract content provisions; providing a |
| 21 | notice form; providing application; providing |
| 22 | severability; providing an effective date. |
| 23 |
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| 24 | Be It Enacted by the Legislature of the State of Florida: |
| 25 |
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| 26 | Section 1. Section 558.001, Florida Statutes, is amended |
| 27 | to read: |
| 28 | 558.001 Legislative findings and declaration.--The |
| 29 | Legislature finds that it is beneficial to have an alternative |
| 30 | method to resolve construction disputes that would reduce the |
| 31 | need for litigation as well as protect the rights of homeowners. |
| 32 | An effective alternative dispute resolution mechanism in certain |
| 33 | construction defect matters should involve the claimant filing a |
| 34 | notice of claim with the contractor, subcontractor, supplier, or |
| 35 | design professional that the claimant asserts is responsible for |
| 36 | the defect, and should provide the contractor, subcontractor, |
| 37 | supplier, or design professional with an opportunity to resolve |
| 38 | the claim without resort to further legal process. |
| 39 | Section 2. Section 558.002, Florida Statutes, is amended |
| 40 | to read: |
| 41 | 558.002 Definitions.--As used in this chapter act, the |
| 42 | term: |
| 43 | (1) "Action" means any civil action or arbitration |
| 44 | proceeding for damages or indemnity asserting a claim for damage |
| 45 | to or loss of a dwelling or personal property caused by an |
| 46 | alleged construction defect, but does not include any civil |
| 47 | action or arbitration proceeding asserting a claim for alleged |
| 48 | personal injuries arising out of an alleged construction defect. |
| 49 | (2) "Association" has the same meaning as in s. |
| 50 | 718.103(2), s. 719.103(2), s. 720.301(7), or s. 723.025. |
| 51 | (3) "Claimant" means a homeowner, including a subsequent |
| 52 | purchaser, tenant, or association, who asserts a claim for |
| 53 | damages against a contractor, subcontractor, supplier, or design |
| 54 | professional concerning a construction defect or who asserts a |
| 55 | claim for indemnification for such damages. The term does not |
| 56 | include a contractor, subcontractor, supplier, or design |
| 57 | professional. |
| 58 | (4) "Construction defect" means a deficiency in, or a |
| 59 | deficiency arising out of, the design, specifications, |
| 60 | surveying, planning, supervision, observation of construction, |
| 61 | or construction, repair, alteration, or remodeling of a |
| 62 | dwelling, any appurtenance to the dwelling, or the real property |
| 63 | to which the dwelling or appurtenance is affixed resulting from: |
| 64 | (a) Defective material, products, or components used in |
| 65 | the construction or remodeling; |
| 66 | (b) A violation of the applicable codes in effect at the |
| 67 | time of construction or remodeling which gives rise to a cause |
| 68 | of action pursuant to s. 553.84; |
| 69 | (c) A failure of the design of a dwelling to meet the |
| 70 | applicable professional standards of care at the time of |
| 71 | governmental approval; or |
| 72 | (d) A failure to construct or remodel a dwelling in |
| 73 | accordance with accepted trade standards for good and |
| 74 | workmanlike construction at the time of construction. |
| 75 | (5) "Contractor" means any person, as defined in s. 1.01, |
| 76 | firm, partnership, corporation, association, or other |
| 77 | organization that is legally engaged in the business of |
| 78 | designing, developing, constructing, manufacturing, selling, or |
| 79 | remodeling dwellings or attachments thereto. |
| 80 | (6) "Design professional" means a person, as defined in s. |
| 81 | 1.01, licensed in this state as an architect, interior designer, |
| 82 | landscape architect, engineer, or surveyor. |
| 83 | (7) "Dwelling" means a single-family house, manufactured |
| 84 | or modular home, duplex, triplex, quadruplex, or other |
| 85 | multifamily unit in a multifamily residential building designed |
| 86 | for residential use in which title to each individual unit is |
| 87 | transferred to the owner under a condominium or cooperative |
| 88 | system and includes common areas and improvements that are owned |
| 89 | or maintained by an association or by members of an association, |
| 90 | and also includes the systems, other components, and |
| 91 | improvements, and other structures or facilities, including, but |
| 92 | not limited to, recreational structures or facilities, that are |
| 93 | appurtenant to and located on the real property on which the |
| 94 | house, duplex, triplex, quadruplex, or other multifamily unit is |
| 95 | located, but are not necessarily part of the structure at the |
| 96 | time of completion of construction. |
| 97 | (8) "Service" means personal service or delivery by |
| 98 | certified mail, return receipt requested, to the last known |
| 99 | address of the addressee. |
| 100 | (9) "Subcontractor" means a person, as defined in s. 1.01, |
| 101 | who is a contractor who performs labor and supplies material |
| 102 | work on behalf of another contractor in the construction or |
| 103 | remodeling of a dwelling. |
| 104 | (10) "Supplier" means a person, as defined in s. 1.01, who |
| 105 | provides only materials, equipment, or other supplies for the |
| 106 | construction or remodeling of a dwelling. |
| 107 | Section 3. Section 558.003, Florida Statutes, is amended |
| 108 | to read: |
| 109 | 558.003 Action; compliance abatement.--If A claimant may |
| 110 | not file files an action subject to this chapter without first |
| 111 | complying with the requirements of this chapter. If a claimant |
| 112 | files an action alleging a construction defect without first |
| 113 | complying with the requirements of this chapter act, on timely |
| 114 | motion by a party to the action the court shall abate the |
| 115 | action, without prejudice, and the action may not proceed until |
| 116 | the claimant has complied with such requirements. |
| 117 | Section 4. Section 558.004, Florida Statutes, is amended |
| 118 | to read: |
| 119 | 558.004 Notice and opportunity to repair.-- |
| 120 | (1) In actions brought alleging a against a contractor, |
| 121 | subcontractor, supplier, or design professional related to an |
| 122 | alleged construction defect, the claimant shall, at least no |
| 123 | later than 60 days before filing an action involving a single- |
| 124 | family home manufactured or modular home, duplex, triplex, or |
| 125 | quadruplex, or at least 120 days before filing an action |
| 126 | involving an association of one or more units in a multifamily |
| 127 | residential building, serve written notice of claim on the |
| 128 | contractor, subcontractor, supplier, or design professional, as |
| 129 | applicable, which notice shall refer to this chapter. If the |
| 130 | construction defect claim arises from work performed under a |
| 131 | contract, the written notice of claim must be served on the |
| 132 | person with whom the claimant contracted. The notice of claim |
| 133 | must describe the claim in reasonable detail sufficient to |
| 134 | determine the general nature of each alleged construction defect |
| 135 | and a description of the damage or loss resulting from the |
| 136 | defect, if known. The claimant shall endeavor to serve the |
| 137 | notice of claim within 15 days after discovery of an alleged |
| 138 | defect, but the failure to serve notice of claim within 15 days |
| 139 | does not bar the filing of an action, subject to s. 558.003. |
| 140 | This subsection does not preclude a claimant from filing an |
| 141 | action sooner than 60 days, or 120 days as applicable, after |
| 142 | service of written notice as expressly provided in subsection |
| 143 | (6), subsection (7), or subsection (8). |
| 144 | (2) Within 30 5 business days after receipt service of the |
| 145 | notice of claim, the contractor, subcontractor, supplier, or |
| 146 | design professional may inspect involving a single-family home, |
| 147 | manufactured or modular home, duplex, triplex, or quadruplex, or |
| 148 | within 50 days after receipt of the notice of claim involving an |
| 149 | association of one or more units in a multifamily building, the |
| 150 | person receiving the notice of claim under subsection (1) is |
| 151 | entitled to perform a reasonable inspection of the dwelling or |
| 152 | of each unit subject to the claim to assess each alleged |
| 153 | construction defect. The claimant shall provide the person |
| 154 | receiving the notice under subsection (1) and such person's |