March 24, 2007
DENVER - Home builders would no longer be able to obtain waivers of buyers’ rights to sue under the state’s consumer protection laws, or to receive money damages for poor workmanship under a bill approved Friday by the House Judiciary Committee.
HB1338 got seven of 10 votes from committee members, with Pikes Peak-region Reps. Bob Gardner, R-Colorado Springs, and Amy Stephens, R-Monument, in opposition.
Sponsoring Rep. Jack Pommer, D-Boulder, told the committee that the bill is essential if homeowners’ expectations about what they are buying are to be honored.
“Your right to have a decent home, and have the builder fix it if it isn’t, is null and void” when builders require a waiver as part of the closing process, Pommer said.
Pommer argued that the bill is needed to restore the intent of the state’s Construction Defect Action Reform Act, which allowed homeowners the option of seeking compensatory damages in exchange for a ban on punitive damages and requirement that homeowners give builders a chance to fix defects before a lawsuit is filed.
“They don’t realize, when they sign the contract, they waive the rights to use the law the home builders wrote,” Pommer said. “So they end up with no rights.”
Opponents said the bill would ultimately raise the cost of houses by giving builders a reason not to provide express warranties.
“We heard very loud and clear from the business community about the kind of balance that we want to keep in keeping Colorado pro-business. I think this bill is potentially a victory for trial lawyers,” Stephens said.
But Rep. Claire Levy, D-Boulder, said, “I think it’s unfair to characterize every piece of legislation that comes to this body that helps consumers who may find themselves in need of a lawyer as being there to line the pockets of trial lawyers.”
“The homeowners I’ve met don’t want to go to court,” Pommer said. “The implication they just go to court so they can get rich, I think is just appalling.”
“In Aurora I can point to entire subdivisions where, within one year, siding was falling off every home. It’s visible, it’s a massive eyesore, these properties were only a year old, they have no rights. Now they can’t sell them, they can’t refinance them, they’ve lost everything on this,” Rep. Morgan Carroll, D-Aurora, said.
The bill now goes to the full House of Representatives, where it is expected to be considered next week.
Contact the writer: hank.lacey@gazette.com or 1-303-837-0697
HB1338 got seven of 10 votes from committee members, with Pikes Peak-region Reps. Bob Gardner, R-Colorado Springs, and Amy Stephens, R-Monument, in opposition.
Sponsoring Rep. Jack Pommer, D-Boulder, told the committee that the bill is essential if homeowners’ expectations about what they are buying are to be honored.
“Your right to have a decent home, and have the builder fix it if it isn’t, is null and void” when builders require a waiver as part of the closing process, Pommer said.
Pommer argued that the bill is needed to restore the intent of the state’s Construction Defect Action Reform Act, which allowed homeowners the option of seeking compensatory damages in exchange for a ban on punitive damages and requirement that homeowners give builders a chance to fix defects before a lawsuit is filed.
“They don’t realize, when they sign the contract, they waive the rights to use the law the home builders wrote,” Pommer said. “So they end up with no rights.”
Opponents said the bill would ultimately raise the cost of houses by giving builders a reason not to provide express warranties.
This is a strange argument since builders (and most Republicans) argued that the Construction Defect Act they passed in 2003 would help hold down housing prices. Now they're saying that letting people use the Construction Defect Act will push up prices. Which is it?“It will not be in the interests of all the home buyers in Colorado,” Gardner said. “It will increase the costs of their homes, it will ultimately give them less protection.”
The warranties, by the way, are worthless. Homebuilders use them only to lure home buyers into waiting their legal rights.
Less protection? Take a look at some of the contracts homebuilders are forcing people to sign before they can buy new homes. It's hard to imagine less protection.Other Republican critics said the bill is a way to enrich lawyers and could harm the state’s economy.
“We heard very loud and clear from the business community about the kind of balance that we want to keep in keeping Colorado pro-business. I think this bill is potentially a victory for trial lawyers,” Stephens said.
But Rep. Claire Levy, D-Boulder, said, “I think it’s unfair to characterize every piece of legislation that comes to this body that helps consumers who may find themselves in need of a lawyer as being there to line the pockets of trial lawyers.”
It's hard to argue that people who buy a defective home should be forced to live with it. When families come to committee and testify that they've lost their life savings to the irresponsible homebuilder who sold them a defective home, it's hard (but not impossible) to make them look like the bad ones. So supporters of special interests avoid talking about the victims and try to find some scapegoat to blame.Pommer doubts most homeowners will sue over unrepaired defects.
“The homeowners I’ve met don’t want to go to court,” Pommer said. “The implication they just go to court so they can get rich, I think is just appalling.”
How many people have you sued? Some legislators blame everything on "overly-litigious" Coloradans. Listening to them you'd think every citizen in Colorado had half a dozen frivolous lawsuits going at any given time. Do you? Do you know anyone who does? I don't. I think most Coloradans would prefer to live their entire lives without ever seeing the inside of a courtroom. If they ever take the time to find a lawyer and file a lawsuit it's because they've been put in a terrible position, tried everything else, and suing is their last resort.Other supporters said the bill is aimed at preventing decay of neighborhoods.
“In Aurora I can point to entire subdivisions where, within one year, siding was falling off every home. It’s visible, it’s a massive eyesore, these properties were only a year old, they have no rights. Now they can’t sell them, they can’t refinance them, they’ve lost everything on this,” Rep. Morgan Carroll, D-Aurora, said.
The bill now goes to the full House of Representatives, where it is expected to be considered next week.
Contact the writer: hank.lacey@gazette.com or 1-303-837-0697
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