- Introduced -

SB 1081 - This act permits contractors to resolve law suits without litigation.

In any civil action against a contractor for damages relating to new construction or a "substantive" residential remodeling, the claimant must file a notice of claim not less than 90 days before filing a civil action (Section 431.303).

Thirty days after filing the notice of claim, the contractor must file a written response, which may include: 1) A proposal to inspect the residence (claimant must provide reasonable access); 2) An offer to settle the dispute without inspection; and 3) A denial of the homeowner's claim.

The claimant may reject the offer of compromise from the contractor. The parties must then attempt to mediate the claim under Section 431.309, RSMo. If the claim is not resolved by mediation, the claimant may file an action against the contractor.

If the contractor elects to inspect the residence, within 14 days after the inspection, the contractor may provide the claimant with a written offer to remedy the defect, make an offer of monetary settlement, or deny liability. If the contractor does not adhere to the timetable under this section, the claimant may file suit. If the claimant rejects the offer of settlement, the matter must be mediated under Section 431.309. All rejection or acceptance of the contractor's offer of settlement must be in writing.

All civil actions that do not follow the requirements of this act shall be dismissed without prejudice. However, the adherence to the requisites of this act will toll the statute of limitations.

The act establishes a cause of action that can be brought on behalf of the homeowners' association when two or more residences have the same construction defects. The board must comply with the provisions of the act and provide written notice of the action to each homeowner in the association (Section 401.306).

Unless the contractor fails to comply with the requisites of the act, the claimant must seek mediation before commencing any civil action. The mediation must commence within 45 days of a request for mediation by either party. Documents or statements used in mediation cannot be used in any subsequent civil action (Section 431.309).

The contractor shall provide a notice to each prospective claimant at the time of contracting that any disputes between the parties are subject to the requisites of this act. The language for the notice is contained in the act (Section 431.312).

HENRY T. HERSCHEL