CONSTRUCTION DEFECT LEGISLATION DEFEATED IN COLO.:

Voters in Colorado Nov. 2 overwhelmingly turned back an effort to amend the state’s constitution and gut a construction defects reform measure passed by the legislature last year. In a victory for consumers and the real estate industry alike, voters defeated Amendment 34 by a more than 3-to-1 margin, protecting Notice and Opportunity to Repair legislation that has significantly reduced frivolous lawsuits since its passage. The Colorado legislature passed Notice and Opportunity to Repair legislation in 2003, joining 22 other states with similar legislation on the books. NOR encourages non-litigious settlement of construction disputes while preserving the right of homeowners to sue if issues cannot be resolved. The legislation ensures that homeowners and homeowner association boards notify builders and developers that a problem exists, and provide a chance for the complaint to be addressed, before filing a costly lawsuit. The number of lawsuits filed annually by the state’s top construction defect law firms fell dramatically under the new law, according to data obtained from the Colorado State Judicial Administrator. During the five years prior to the 2003 passage of the NOR legislation, 556 construction defect lawsuits were filed in Colorado, including 140 in 2002 and 80 in the first four months of 2003. So far this year, just 22 have been filed.