Assembly Bill No. 373–Assemblymen Marvel, Sherer, Hettrick, Geddes, Goicoechea and Grady

 

March 17, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Limits period during which certain actions may be commenced or claims made relating to constructional defects. (BDR 2‑734)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to limitation of actions; limiting the period during which certain actions may be commenced or claims may be made relating to constructional defects; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 11 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  No action may be commenced and no claim may be made:

1-4  (a) More than 5 years after the close of escrow of the initial

1-5  purchase of the residence after its original construction for

1-6  damages arising from a constructional defect in a residence

1-7  relating to:

1-8       (1) Any paint or stain used for the residence; or

1-9       (2) Any deterioration of an underlying surface of the

1-10  residence caused by the paint or stain,

1-11  unless an express warranty exists for the paint or stain used, and

1-12  then no such action may be commenced or claim made more than

1-13  5 years after the expiration of the warranty.

1-14      (b) More than 4 years after the close of escrow of the initial

1-15  purchase of the residence after its original construction for

2-1  damages arising from a constructional defect in a residence

2-2  relating to:

2-3       (1) Any plumbing, electrical or sewer system for the

2-4  residence;

2-5       (2) Any exterior pathway, driveway, hardscape, sidewall,

2-6  sidewalk or patio installed by the original builder of the residence;

2-7  or

2-8       (3) Any untreated steel fence for the residence.

2-9  (c) More than 2 years after the close of escrow of the initial

2-10  purchase of the residence after its original construction for

2-11  damages arising from a constructional defect in a residence

2-12  relating to any landscaping or dryer duct for the residence.

2-13      (d) More than 1 year after the close of escrow of the initial

2-14  purchase of the residence after its original construction for

2-15  damages arising from a constructional defect in a residence

2-16  relating to:

2-17          (1) Any irrigation or drainage system for the residence; or

2-18          (2) Any work relating to the fit or finish of the residence.

2-19      (e) More than 1 year after the close of escrow of the initial

2-20  purchase of the residence after its original construction for

2-21  damages arising from a constructional defect in a residence

2-22  relating to any manufactured product installed in the residence,

2-23  including, without limitation, any:

2-24          (1) Appliance;

2-25          (2) Cabinet;

2-26          (3) Countertop;

2-27          (4) Door;

2-28          (5) Electrical fixture;

2-29          (6) Fireplace;

2-30          (7) Plumbing product or fixture;

2-31          (8) Roof;

2-32          (9) Unit for heating, ventilation or air conditioning; or

2-33          (10) Window,

2-34  unless an express warranty for the manufactured product installed

2-35  exists, and then no such action may be commenced or claim made

2-36  more than 1 year after the expiration of the warranty.

2-37      2.  As used in this section, “constructional defect” has the

2-38  meaning ascribed to it in NRS 40.615.

2-39      Sec. 2.  NRS 11.202 is hereby amended to read as follows:

2-40      11.202  1.  [An] Except as otherwise provided in section 1 of

2-41  this act, an action may be commenced against the owner, occupier

2-42  or any person performing or furnishing the design, planning,

2-43  supervision or observation of construction, or the construction of an

2-44  improvement to real property at any time after the substantial

3-1  completion of such an improvement, for the recovery of damages

3-2  for:

3-3  (a) Any deficiency in the design, planning, supervision or

3-4  observation of construction or the construction of such an

3-5  improvement which is the result of his willful misconduct or which

3-6  he fraudulently concealed;

3-7  (b) Injury to real or personal property caused by any such

3-8  deficiency; or

3-9  (c) Injury to or the wrongful death of a person caused by any

3-10  such deficiency.

3-11      2.  The provisions of this section do not apply in an action

3-12  brought against:

3-13      (a) The owner or keeper of any hotel, inn, motel, motor court,

3-14  boardinghouse or lodginghouse in this state on account of his

3-15  liability as an innkeeper.

3-16      (b) Any person on account of a defect in a product.

3-17      Sec. 3.  NRS 11.203 is hereby amended to read as follows:

3-18      11.203  1.  Except as otherwise provided in NRS 11.202 and

3-19  11.206, and section 1 of this act, no action may be commenced

3-20  against the owner, occupier or any person performing or furnishing

3-21  the design, planning, supervision or observation of construction, or

3-22  the construction of an improvement to real property more than 10

3-23  years after the substantial completion of such an improvement, for

3-24  the recovery of damages for:

3-25      (a) Any deficiency in the design, planning, supervision or

3-26  observation of construction or the construction of such an

3-27  improvement which is known or through the use of reasonable

3-28  diligence should have been known to him;

3-29      (b) Injury to real or personal property caused by any such

3-30  deficiency; or

3-31      (c) Injury to or the wrongful death of a person caused by any

3-32  such deficiency.

3-33      2.  Notwithstanding the provisions of NRS 11.190 and

3-34  subsection 1 of this section, if an injury occurs in the 10th year after

3-35  the substantial completion of such an improvement, an action for

3-36  damages for injury to property or person, damages for wrongful

3-37  death resulting from such injury or damages for breach of contract

3-38  may be commenced within 2 years after the date of such injury,

3-39  irrespective of the date of death, but in no event may an action be

3-40  commenced more than 12 years after the substantial completion of

3-41  the improvement.

3-42      3.  The provisions of this section do not apply to a claim for

3-43  indemnity or contribution.

 

 

4-1  Sec. 4.  NRS 11.204 is hereby amended to read as follows:

4-2  11.204  1.  Except as otherwise provided in NRS 11.202,

4-3  11.203 and 11.206, and section 1 of this act, no action may be

4-4  commenced against the owner, occupier or any person performing

4-5  or furnishing the design, planning, supervision or observation of

4-6  construction, or the construction, of an improvement to real property

4-7  more than 8 years after the substantial completion of such an

4-8  improvement, for the recovery of damages for:

4-9  (a) Any latent deficiency in the design, planning, supervision or

4-10  observation of construction or the construction of such an

4-11  improvement;

4-12      (b) Injury to real or personal property caused by any such

4-13  deficiency; or

4-14      (c) Injury to or the wrongful death of a person caused by any

4-15  such deficiency.

4-16      2.  Notwithstanding the provisions of NRS 11.190 and

4-17  subsection 1 of this section, if an injury occurs in the eighth year

4-18  after the substantial completion of such an improvement, an action

4-19  for damages for injury to property or person, damages for wrongful

4-20  death resulting from such injury or damages for breach of contract

4-21  may be commenced within 2 years after the date of such injury,

4-22  irrespective of the date of death, but in no event may an action be

4-23  commenced more than 10 years after the substantial completion of

4-24  the improvement.

4-25      3.  The provisions of this section do not apply to a claim for

4-26  indemnity or contribution.

4-27      4.  For the purposes of this section, “latent deficiency” means a

4-28  deficiency which is not apparent by reasonable inspection.

4-29      Sec. 5.  NRS 11.205 is hereby amended to read as follows:

4-30      11.205  1.  Except as otherwise provided in NRS 11.202,

4-31  11.203 and 11.206, and section 1 of this act, no action may be

4-32  commenced against the owner, occupier or any person performing

4-33  or furnishing the design, planning, supervision or observation of

4-34  construction, or the construction of an improvement to real property

4-35  more than 6 years after the substantial completion of such an

4-36  improvement, for the recovery of damages for:

4-37      (a) Any patent deficiency in the design, planning, supervision or

4-38  observation of construction or the construction of such an

4-39  improvement;

4-40      (b) Injury to real or personal property caused by any such

4-41  deficiency; or

4-42      (c) Injury to or the wrongful death of a person caused by any

4-43  such deficiency.

 

5-1  2.  Notwithstanding the provisions of NRS 11.190 and

5-2  subsection 1 of this section, if an injury occurs in the sixth year after

5-3  the substantial completion of such an improvement, an action for

5-4  damages for injury to property or person, damages for wrongful

5-5  death resulting from such injury or damages for breach of contract

5-6  may be commenced within 2 years after the date of such injury,

5-7  irrespective of the date of death, but in no event may an action be

5-8  commenced more than 8 years after the substantial completion of

5-9  the improvement.

5-10      3.  The provisions of this section do not apply to a claim for

5-11  indemnity or contribution.

5-12      4.  For the purposes of this section, “patent deficiency” means a

5-13  deficiency which is apparent by reasonable inspection.

5-14      Sec. 6.  NRS 11.206 is hereby amended to read as follows:

5-15      11.206  The limitations respectively prescribed by NRS 11.203,

5-16  11.204 and 11.205 and section 1 of this act are not a defense in an

5-17  action brought against:

5-18      1.  The owner or keeper of any hotel, inn, motel, motor court,

5-19  boardinghouse or lodginghouse in this state on account of his

5-20  liability as an innkeeper.

5-21      2.  Any person on account of a defect in a product.

5-22      Sec. 7.  NRS 113.135 is hereby amended to read as follows:

5-23      113.135  1.  Upon signing a sales agreement with the initial

5-24  purchaser of residential property that was not occupied by the

5-25  purchaser for more than 120 days after substantial completion of the

5-26  construction of the residential property, the seller shall:

5-27      (a) Provide to the initial purchaser a copy of NRS 11.202 to

5-28  11.206, inclusive, and 40.600 to 40.695, inclusive[;] , and section 1

5-29  of this act;

5-30      (b) Notify the initial purchaser of any soil report prepared for the

5-31  residential property or for the subdivision in which the residential

5-32  property is located; and

5-33      (c) If requested in writing by the initial purchaser not later than

5-34  5 days after signing the sales agreement, provide to the purchaser

5-35  without cost each report described in paragraph (b) not later than 5

5-36  days after the seller receives the written request.

5-37      2.  Not later than 20 days after receipt of all reports pursuant to

5-38  paragraph (c) of subsection 1, the initial purchaser may rescind the

5-39  sales agreement.

5-40      3.  The initial purchaser may waive his right to rescind the sales

5-41  agreement pursuant to subsection 2. Such a waiver is effective only

5-42  if it is made in a written document that is signed by the purchaser.

5-43      Sec. 8.  The amendatory provisions of this act apply only to an

5-44  action for damages arising from a constructional defect in a

6-1  residence for which the close of escrow of the initial purchase of the

6-2  residence occurs on or after October 1, 2003.

 

6-3  H