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Task Force Forwards Recommendations

The Construction Liability Task Force met for the final time late January and voted approval for a report it will file with Nevada Commissioner of Insurance Alice Molasky-Arman and forwarded to the Nevada Legislature for consideration during the 2003 legislative session.

The Task Force was formed in September, 2002, and met twice each month in Carson City. Members included builders, trade contractors, insurance people and a representative from the Nevada Trial Lawyers Association. The meetings included matters ranging from attorney fees for construction defect cases to continuing education for contractors.

The Task Force’s report will recommend the following:

The Calloway V. City of Reno Nevada Supreme Court decision issued in 2000 be codified;
Chapter 40, the sections of Nevada law that deal with construction defects, should be scrapped;
Both complex and non-complex cases should be amended to allow more notice for builders and trade contractors. A complex case is one involving more than five units;
A construction defect should be defined in statute;
The statute of limitations for filing a case should be reduced;
Attorney fees should be capped. Cases were documented in which attorney fees ate up a significant percentage of a settlement amount, leaving homeowners with far less funds to make repairs;
Disclosure of construction defect claims to the Nevada State Contractors Board. Both the Board and the homeowners must be notified of any such claims;
Contractors must meet new continuing education requirements.


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