Earlier this year, the Legislature enacted SB1271, which made a number of changes to the Purchaser Dwelling Act (the “PDA”). The PDA governs construction defect litigation involving single-family and multi-family homes. SB1271 went into effect on August 27, 2019.
The legislation arose out of recommendations from the Construction Liability Apportionment Study Committee. This committee was established by the Legislature in 2018 to study how liability for construction defects is apportioned and recommend changes to the law. SB1271 was the committee’s final product.
The new law makes the following changes to the PDA and construction-defect litigation:
Indemnity: One of SB1271’s foremost goals is to apportion liability for construction defects based on each party’s own share of fault for that defect.
Earlier this year, the Legislature enacted a statute making a number of changes to the Purchaser Dwelling Act (the “PDA”). The PDA governs construction defect litigation involving single-family and multi-family homes.
The new legislation becomes effective on August 27, 2019 and requires some changes to form construction and consulting agreements, and may also require changes to how homebuilders and sellers process construction defect claims.
Broadly, the legislation changes the PDA in the following ways:
Expanded Right of Repair: The PDA was initially enacted to give the “seller” an opportunity to repair any alleged construction defects before the homebuyer could file a lawsuit.
It was recently announced that Gammage & Burnham PLC is nationally ranked in eight practice areas and regionally ranked in 18 practice areas. The U.S. News – Best Lawyers® “Best Law Firms” rankings are based on a rigorous evaluation process, and Best Lawyers is the oldest peer-review publication in the legal profession.
According to Best Lawyers, a tier designation reflects a high level of respect a firm has earned among other lawyers and clients for their abilities, their professionalism and their integrity. There are three tier levels, with one being the highest. Gammage & Burnham received first-tier rankings among firms in the Phoenix metro area for ten practice areas: Administrative/Regulatory Law; Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law; Business Organizations (including LLCs and Partnerships); Commercial Litigation; Construction Law; Health Care Law; Land Use & Zoning Law; Litigation – Construction; Litigation – Land Use & Zoning; Litigation – Real Estate; Real Estate Law; and Securities Regulation.
Gammage & Burnham member Tom McDonald and associate Chris Hering are featured in the current issue of Commercial Executive magazine. Tom and Chris provide the Sector Update feature in this issue. Their article is titled: Construction Transactions Privilege Tax and it outlines recent changes in Arizona’s transactions privilege tax.
Please visit Commercial Executive to access the magazine or the link below to read the article.
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