Bill Text: DE HB400 | 2009-2010 | 145th General Assembly | Draft

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Bill Title: An Act To Amend Title 6 Of The Delaware Code Relating To Building Construction Disputes. [Track Bill]

Status: 2010-06-16 - Reported Out of Committee (LABOR & INDUSTRIAL RELATIONS) in Senate with 3 On Its Merits [HB400 Detail]

Download: Delaware-2009-HB400-Draft.html

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SPONSOR:	Rep. B. Short & Rep. Kovach & Rep. D. Short
	Reps. Barbieri, Bennett, Briggs King, Hocker, Q. Johnson, Lavelle, Mitchell, Ramone, Walls; Sens. Bushweller, Henry

HOUSE OF REPRESENTATIVES

145th GENERAL ASSEMBLY

HOUSE BILL NO. 400

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO BUILDING CONSTRUCTION DISPUTES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend Chapter 35, Title 6 of the Delaware Code by adding new section 3501(7) as follows:

"(7)This Chapter shall be renamed the "Building Construction Procedures Act," and may hereinafter be cited as such, notwithstanding any Historical or Statutory Note to the contrary.".

Section 2.Amend Chapter 35, Title 6 of the Delaware Code by adding new section 3510 as follows:

"§3510.Applicable Law; Dispute Resolution.

(a)Any provision or clause in any contract, subcontract, agreement or understanding for construction work performed in Delaware that makes the contract, subcontract, agreement or understanding subject to the laws of a state other than Delaware, or requires that any litigation, arbitration, mediation or other dispute resolution process on the contract, subcontract, agreement or understanding is to occur in a state other than Delaware, shall be void as against public policy and shall be wholly unenforceable.

(b)This section shall apply to all contracts, subcontracts, agreements or understandings for construction work, including public works contracts, subcontracts, agreements or understandings awarded under Chapter 69, Title 29 of the Delaware Code.

(c)For purposes of this section, the term "construction work" shall be understood to be consistent with the provisions of §3501(2) of this Chapter and Title.".

SYNOPSIS

This Act makes void as against public policy any provision in a contract, agreement, or understanding relating to construction work that would make litigation, mediation, arbitration or other alternative dispute resolution processes subject to the laws of a state other than Delaware, or requires the parties to litigate or engage in alternative dispute resolution in a state other than Delaware.Consistent with the Contract Clause, this Act shall be prospective in nature.