Texas House Bill HB958

Texas 2011 - 82nd Regular

• Introduced: 1/27/11
• Refer: 2/28/11

Caption

Relating to damages in an action arising out of a deficiency in the construction or repair of an improvement to real property.

Impact

The bill modifies existing laws within the Civil Practice and Remedies Code, particularly for cases involving construction defects. By delineating the responsibilities and limitations of possible damages for construction-related claims, the bill aims to incentivize timely legal action and ensure that claimants cannot incur excessive damages based on delayed claims. This change is expected to influence construction practices and potentially lead to improvements in compliance and accountability among builders and contractors.

Summary

House Bill 958 focuses on the adjustment of damages awarded in legal actions related to deficiencies in the construction or repair of real property improvements. It introduces a framework for calculating damages specifically for construction defects, stating that damages incurred for curing such defects will be reduced by 10% for each year that passes after the substantial completion of the project before any claim is filed. This is aimed at establishing a clearer understanding of liability and oversight on construction quality in Texas.

Sentiment

The sentiment around HB 958 appears to be mixed among stakeholders in the construction and legal industries. Proponents believe it fosters responsibility among contractors and encourages prompt reporting of construction issues, while opponents may argue that the damage reduction could be a disincentive for clients to pursue legitimate claims, therefore complicating their ability to seek adequate redress for construction deficiencies.

Contention

Critics of the bill raise concerns regarding the potential inequity it introduces, especially for homeowners and businesses facing significant costs due to construction defects. The 10% annual reduction in damage claims could leave affected parties with insufficient funds to cover repairs, thereby undermining their rights. The debate centers around creating a balance between facilitating construction activities and ensuring that claimants do not lose out on necessary compensatory damages.