Dive Brief:
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Arizona Gov. Doug Ducey this week signed a law that revises the state’s construction defects law to give homebuilders the right to make repairs before a homeowner can sue them.
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The bill also repeals the homeowners’ right to recover legal fees when they sue their builders for defects.
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Opponents of the change have said homeowners will have to pay those fees from any awards the courts grant them, which could leave them with too little money to cover the repairs.
Dive Insight:
Nevada recently made similar changes to its construction-defects law, and the Colorado Senate is set to vote this week on the same kind of legislation. Florida and Washington are considering changes to their laws as well.
Most consumer-focused construction-defect laws were adopted in the 1990s and 2000s, and initially were embraced by builders, who hoped the laws would reduce claims. But a growing number of what lawyers call “frivolous” lawsuits against builders have led states to take action.