A proposed bill attempting to limit construction defects claims in transit-oriented developments died last week in the Colorado Senate Judiciary Committee by a vote of 2-3. The proposed Senate Bill 13-052 (“SB 52”) provided that a construction professional would have a right to repair any claimed defect in a transit-oriented development. The bill also would have prevented claims for “environmental conditions” arising out of transit-oriented development, such as noise, odors, light, vibrations and fumes caused by transit, commercial, public or retail uses. Additionally, it would have required arbitration of claims in transit-oriented developments, unless all parties waived that requirement in writing. Supporters of the bill argued that the current environment for construction defect litigation discourages condominiums in transit-oriented development, and, in order to encourage transit-oriented development, construction defect laws related to these areas should be scaled back. As reported by the Denver Business Journal on April 17, 2013, the State Senator who proposed SB 52, is expected to continue his efforts to pursue construction defects tort reform next year.
