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H. 4460
STATUS INFORMATION
General Bill
Sponsors: Reps. Harrison, Delleney, W.D. Smith, Talley, Taylor, Clemmons, Cotty, Simrill and Walker
Document Path: l:\council\bills\pt\1776ahb04.doc
Introduced in the House on January 13, 2004
Currently residing in the House Committee on Judiciary
Summary: Statute of limitations, constructions, definitions, when civil actions can be initiated
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/17/2003 House Prefiled 12/17/2003 House Referred to Committee on Judiciary 1/13/2004 House Introduced and read first time HJ-82 1/13/2004 House Referred to Committee on Judiciary HJ-83
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTIONS 40-59-820, 40-59-840, AND 40-59-850, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO NOTICE AND OPPORTUNITY TO CURE CONSTRUCTION DWELLING DEFECTS, SO AS TO SUBSTITUTE THE TERM "IMPROVEMENT TO REAL PROPERTY" FOR THE TERMS "DWELLING" AND "RESIDENTIAL IMPROVEMENT", TO PROVIDE A DEFINITION FOR THE TERM "IMPROVEMENT TO REAL PROPERTY", TO PROVIDE THAT THE STATUTE OF LIMITATIONS IS TOLLED UNTIL A CLAIM IS DENIED OR REPAIRS ARE COMPLETED, AND TO PROVIDE THAT THE CLAIMANT MAY PROCEED WITH A CIVIL ACTION IF A DISPUTE BETWEEN THE PARTIES IS NOT SETTLED WITHIN NINETY DAYS OF THE INITIAL NOTICE OF CLAIM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. A. Section 40-59-820 of the 1976 Code, as added by Act 82 of 2003, is amended to read:
"Section 40-59-820. As used in this article:
(1) 'Action' means any civil lawsuit or action or arbitration proceeding for damages or indemnity asserting a claim for injury or loss to a dwelling or personal property an improvement to real property caused by an alleged defect arising out of or related to the design, construction, condition, or sale of the dwelling improvement to real property or a remodel of a dwelling the improvement to real property.
(2) 'Claimant' means a an homeowner owner of an improvement to real property, including a subsequent purchaser, who asserts a claim against a contractor, subcontractor, supplier, or design professional concerning a defect in the design, construction, condition, or sale of a dwelling an improvement to real property or in the remodel of a dwelling an improvement to real property.
(3) 'Construction defect' means a deficiency in or a deficiency arising out of the design, specifications, surveying, planning, supervision, or observation of construction or construction of residential improvements an improvement to real property that results from any of the following:
(a) defective material, products, or components used in the construction of residential improvements an improvement to real property;
(b) violation of the applicable codes in effect at the time of construction of residential improvements an improvement to real property;
(c) failure of the design of residential improvements an improvement to real property to meet the applicable professional standards of care at the time of governmental approval of the design of residential improvements an improvement to real property; or
(d) failure to construct residential improvements an improvement to real property in accordance with accepted trade standards for good and workmanlike construction at the time of construction. Compliance with the applicable codes in effect at the time of construction conclusively establishes construction in accordance with accepted trade standards for good and workmanlike construction, with respect to all matters specified in those codes.
(4) 'Dwelling' means a single-family house or duplex or a multifamily unit not to exceed sixteen units and not to exceed three stories in height, and which is intended for residential use. A dwelling includes the systems and other components and improvements that are part of a single or multifamily unit at the time of construction 'Improvement to real property' means a building or other permanent structure designed for habitation, shelter, storage, trade, manufacture, religion, business, education, or similar use.
(5) 'Serve' or 'service' means personal service or delivery by certified mail to the last known address of the addressee."
B . Section 40-59-840 of the 1976 Code, as added by Act 82 of 2003, is amended to read:
"Section 40-59-840. (A) In an action brought against a contractor or subcontractor arising out of the construction of a dwelling an improvement to real property, the claimant must, no later than ninety days before filing the action, serve a written notice of claim on the contractor. Upon service of the notice, the statute of limitations is tolled until the claim is denied or upon completion of repairs by the contractor or his agent. The notice of claim must contain the following:
(1) a statement that the claimant asserts a construction defect;
(2) a description of the claim or claims in reasonable detail sufficient to determine the general nature of the construction defect; and
(3) a description of any the results of the defect, if known.
The contractor or subcontractor shall advise the claimant, within fifteen days of receipt of the claim, if the construction defect is not sufficiently stated and shall request clarification."
C. Section 40-59-850 of the 1976 Code, as added by Act 82 of 2003, is amended to read:
"Section 40-59-850. (A) The contractor or subcontractor has thirty days from service of the initial notice of claim to inspect, offer to remedy, offer to settle with the claimant, or deny the claim regarding the defects. The claimant shall receive written notice of the contractor's or subcontractor's, as applicable, election under this section Within thirty days from the service of the initial notice of claim, the contractor or subcontractor shall serve written notice on the claimant of the contractor's or subcontractor's election pursuant to this section. The claimant shall allow inspection of the construction defect at an agreeable time to both parties, if requested under this section. The claimant shall give the contractor and any subcontractors reasonable access to the dwelling improvement to real property for inspection and if repairs have been agreed to by the parties, reasonable access to affect repairs. Failure to respond within thirty days is deemed a denial of the claim.
(B) The claimant shall serve a response to the contractor's offer, if any, within ten days of receipt of the offer.
(C) If the parties cannot settle the dispute pursuant to this article, within ninety days after service of the initial notice of claim on the contractor, the claim is considered denied and the claimant may proceed with a civil action or other remedy provided by contract or by law.
(D) Any offers of settlement, repair, or remedy pursuant to this section, are not admissible in an action."
SECTION 2. The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision shall so expressly provide. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.
SECTION 3. This act takes effect upon approval by the Governor and applies to a cause of action arising on or after the effective date of this act.
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