Governor Ritter Signs HB 1338 Into Law
On April 20, 2007, Governor Ritter signed HB 1338 - the Homeowner Protection Act - into law. HB 1338 is designed to work in conjunction with the Construction Defect Action Reform Act (CDARA) and the Colorado Consumer Protection Act (CCPA) - particularly provisions of the Deceptive Trade Practices section of the CCPA. HB 1338 will make any attempt by builders and construction professionals to waive the rights, remedies or damages available to homeowners for construction defects under the CDARA or CCPA unenforceable. HB 1338 went into effect immediately upon being signed by the Governor and will apply to any related actions filed in a court of law on or after April 20th, regardless of when a disputed waiver was executed.
Debate between attorneys and other industry professionals and stakeholders is ongoing regarding the impact of HB 1338 on a variety of waivers routinely used by construction professionals. There is some speculation that lawsuits may be filed in an effort to clarify and limit the scope of HB 1338. In an upcoming issue of Community E-ssentials newsletter, we will examine the types of waivers by builders and construction professionals we believe will be unenforceable under this new law.