Home warranty dispute resolution

Helping homeowners and contractors resolve home warranty disputes out of court is the goal of a bill that received an informational hearing March 23.

Sponsored by Rep. Marsha Swails (DFL-Woodbury), HF3386 is proposed as a way to avoid costly court battles over home repairs or new construction that homeowners believe to be faulty. It would provide an alternative dispute resolution process through the Department of Labor and Industry, and clarify expectations for contractors and homeowners to inspect and repair damaged property.

Charles Durenberger, enforcement services manager at the department, said the bill stems from legislation vetoed last year by Gov. Tim Pawlenty that would have allowed homeowners to recoup attorney’s fees when they prevail in a lawsuit against a builder. After he vetoed the bill, Pawlenty directed the department to look for ways homeowners and builders could avoid lawsuits altogether.

Durenberger said he put together a stakeholder task force that met several times last year to hammer out an agreement that would be amenable to all sides. He said the task force included builders and insurers, as well as homeowners who had been through legal disputes “to the bloody end.”

“What we were trying to do was come up with a proposal that we could get in bill form that everybody could live with,” Durenberger said.

Swails hopes the compromise outlined in the bill will help resolve an issue that she said has been ongoing for many years, including in her own community.

“I come from a community, Woodbury, that has been hard hit by a lot of homes that have water intrusion issues, mold. I’ve been in several of those homes. I’ve seen that damage that has been done,” she said.

The House Higher Education and Workforce Development Finance and Policy Division held an informational hearing on the bill. Swails said she expects the House Finance Committee to hold a hearing and act on it sometime after the Passover/Easter break.

A companion, SF2832, sponsored by Sen. Kathy Saltzman (DFL-Woodbury), has been laid over for possible omnibus bill inclusion by the Senate Economic Development and Housing Budget Division.