Bill Text: OR SB383 | 2011 | Regular Session | Enrolled
Bill Title: Relating to residential defect claims.
Spectrum: Unknown
Status: (Passed) 2011-06-07 - Effective date, January 1, 2012. [SB383 Detail]
Download: Oregon-2011-SB383-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
Senate Bill 383
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Committee on
Judiciary for Oregon State Bar Construction Law Section)
CHAPTER ................
AN ACT
Relating to residential defect claims; creating new provisions;
and amending ORS 701.565, 701.570 and 701.600.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 701.565 is amended to read:
701.565. (1) { + Except as provided in ORS 701.600, + } an
owner may not compel arbitration or commence a court action
against a contractor, subcontractor or supplier to assert a claim
arising out of or related to any defect in the construction,
alteration or repair of a residence or in any system, component
or material incorporated into a residence located in this state
unless the owner has sent that contractor, subcontractor or
supplier a notice of defect as provided in this section and has
complied with ORS 701.575.
(2) An owner must send a notice of defect by registered { + or
certified + } mail, return receipt requested. If a notice of
defect is sent to a contractor or subcontractor, the owner must
send the notice to the last known address for the contractor or
subcontractor as shown in the records of the Construction
Contractors Board. If a notice of defect is sent to a supplier,
the owner must send the notice to the Oregon business address of
the supplier or, if none, to the registered agent of the
supplier.
(3) A notice of defect sent by an owner must include:
(a) The name and mailing address of the owner or the owner's
legal representative, if any;
(b) A statement that the owner may seek to compel arbitration
or bring a court action against the contractor, subcontractor or
supplier;
(c) The address and location of the affected residence;
(d) A description of:
(A) Each defect;
(B) The remediation the owner believes is necessary; and
(C) Any incidental damage not curable by remediation as
described in subparagraph (B) of this paragraph; and
(e) Any report or other document evidencing the existence of
the defects and any incidental damage.
SECTION 2. ORS 701.570 is amended to read:
Enrolled Senate Bill 383 (SB 383-INTRO) Page 1
701.570. (1) A contractor, subcontractor or supplier that
receives a notice of defect sent under ORS 701.565 shall, not
later than 14 days after receiving the notice of defect, send a
secondary notice to any other known contractor, subcontractor or
supplier that may be responsible for some or all of the defects
described in the notice of defect. The contractor, subcontractor
or supplier must send the secondary notice by registered { + or
certified + } mail, return receipt requested, to an address
described in ORS 701.565 (2). The secondary notice must be
accompanied by a statement describing the basis for contending
that the other contractor, subcontractor or supplier may be
responsible for some or all of the defects.
(2) A contractor, subcontractor or supplier that receives a
notice of defect or secondary notice may send the owner a written
request to conduct a visual examination of the residence. The
written request must be sent not later than 14 days after the
requesting contractor, subcontractor or supplier receives a
notice of defect or secondary notice. The written request to
conduct a visual examination of the residence must state the
estimated time required for the visual examination.
(3) A contractor, subcontractor or supplier that receives a
notice of defect or secondary notice may send the owner a written
request to inspect the residence. The written request must be
sent not later than 14 days after the requesting contractor,
subcontractor or supplier conducted a visual examination of the
residence. The written request to inspect the residence must
state the nature and scope of the inspection, whether any testing
is to be performed and the estimated time required for the
inspection. The recipient of a secondary notice that requests to
inspect the residence shall send a copy of the request to the
sender of the secondary notice.
(4) A contractor, subcontractor or supplier that sends a
secondary notice and intends to hold the recipient of the
secondary notice liable for a defect described in a notice of
defect shall coordinate the scheduling of any inspection with the
owner and all recipients of a secondary notice from the
contractor, subcontractor or supplier. The contractor,
subcontractor or supplier shall deliver a copy of any written
request to inspect the residence to each recipient of the
secondary notice in time to provide the recipient with an
opportunity to attend the requested inspection and to participate
in any remediation. The sender of a secondary notice shall give
reasonable advance notice to the owner or the owner's legal
representative, if any, of the identity of any contractor,
subcontractor or supplier who will attend the inspection.
(5) Unless otherwise agreed to by the owner, a contractor,
subcontractor or supplier that receives a notice of defect or
secondary notice shall send a written response to the owner not
later than 90 days after the contractor, subcontractor or
supplier receives a notice of defect or secondary notice. A
contractor, subcontractor or supplier that receives a secondary
notice also shall send a copy of the written response to the
sender of the secondary notice. The written response must be sent
by registered { + or certified + } mail, return receipt
requested. The written response must include:
(a) One or more of the following for each defect described in
the notice of defect or secondary notice or discovered during the
course of any visual examination or inspection:
(A) An acknowledgment of the existence, nature and extent of
the defect without regard to responsibility for the defect.
Enrolled Senate Bill 383 (SB 383-INTRO) Page 2
(B) A statement describing the existence of a defect different
in nature or extent from the defect described in the notice of
defect or secondary notice, without regard to responsibility for
the defect.
(C) A denial of the existence of the defect.
(b) A copy of the documents described in ORS 701.575 (4).
(c) One or more of the following:
(A) An offer to perform some or all of the remediation. The
offer must specify the date by which the offered remediation will
be completed.
(B) An offer to pay a stated amount of monetary compensation to
the owner for some or all of the acknowledged defects and any
incidental damage. The offer must specify the date by which
payment will be made.
(C) A denial of responsibility for some or all of the
acknowledged defects or incidental damage.
SECTION 3. ORS 701.600 is amended to read:
701.600. ORS 701.560 to 701.595 and 701.605 do not apply:
(1) To personal injury or death claims.
(2) To claims or complaints filed pursuant to ORS 671.695 or
701.139.
(3) To claims against a person licensed under ORS 671.010 to
671.220.
{ + (4) To complaints filed in a small claims department
established in a justice court or circuit court as described in
ORS 55.011.
(5) To counterclaims or other responses to a contractor,
subcontractor or supplier claim, arbitration demand or complaint
that arises out of, or is related to, a contract for the
construction, alteration or repair of a residence or a system,
component or material incorporated into a residence. + }
SECTION 4. { + (1) The amendments to ORS 701.565 and 701.570
by sections 1 and 2 of this 2011 Act apply to notices and
responses mailed on or after the effective date of this 2011 Act.
(2) The amendments to ORS 701.600 by section 3 of this 2011 Act
apply to a counterclaim or other response made on or after the
effective date of this 2011 Act regarding a claim, arbitration
demand or complaint made by a contractor, subcontractor or
supplier before, on or after the effective date of this 2011
Act. + }
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Enrolled Senate Bill 383 (SB 383-INTRO) Page 3
Passed by Senate March 14, 2011
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House May 25, 2011
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Enrolled Senate Bill 383 (SB 383-INTRO) Page 4
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 383 (SB 383-INTRO) Page 5
