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S.B. 220 Enrolled

             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, whether written or otherwise, including both express and

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

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