First Substitute S.B. 220

Representative Stephen H. Urquhart proposes the following substitute bill:

1 CAUSE OF ACTION FOR DEFECTIVE
2 CONSTRUCTION
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Curtis S. Bramble
6 House Sponsor: Stephen H. Urquhart
7
8 LONG TITLE
9 General Description:
10 This bill creates limitations on a cause of action for defective construction.
11 Highlighted Provisions:
12 This bill:
13 . limits a cause of action for defective construction to a breach of contract action,
14 unless there is certain other property damage, personal injury, or an intentional or
15 willful breach of a legal duty; and
16 . addresses who may bring an action for defective construction.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 78B-4-512, Utah Code Annotated 1953
24
25 Be it enacted by the Legislature of the state of Utah:

26 Section 1. Section 78B-4-512 is enacted to read:
27 78B-4-512. Cause of action for defective construction.
28 (1) Except as provided in Subsection (2), an action for defective design or construction
29 is limited to breach of the contract.
30 (2) An action for defective design or construction may include damage to other
31 property or physical personal injury if the damage or injury is caused by the defective design or
32 construction.
33 (3) For purposes of this section, property damage does not include:
34 (a) the failure of construction to function as designed; or
35 (b) diminution of the value of the constructed property because of the defective design
36 or construction.
37 (4) Except as provided in Subsection (2), an action for defective design or construction
38 may be brought only by a person in privity of contract with the original contractor, architect,
39 engineer, or the real estate developer.
40 (5) If a person in privity of contract sues for defective design or construction under this
41 section, nothing in this section precludes the person from bringing, in the same suit, another
42 cause of action to which the person is entitled based on an intentional or willful breach of a
43 duty existing in law.
44 (6) Nothing in this section precludes a person from assigning a right under a contact to
45 another person, including to a subsequent owner or a homeowners association.