Reminiscent of his earlier role in “Money Pit,” Tom Hanks is experiencing one of the most frustrating situations many home owners face – remodeling with an uncooperative contractor. The Idaho Supreme Court ruled last year that a second arbitration was allowable under the contract.The Idaho Supreme Court this week has refused to reconsider its ruling in a lawsuit pitting an Idaho contractor against Tom Hanks and Rita Wilson.The high court said last week its October ruling in favor of the acting and producing couple will stand.
The long-running dispute began after Hanks and Wilson hired Storey Construction to build their high-end villa in Ketchum. Both sides went into arbitration to settle disputes over payment and construction defect claims. Three years later, the couple sought a second arbitration, saying they’d found latent construction defects. The company said those matters had been settled in the first arbitration.
In Colorado, the law regarding construction defect changed effective April 2003. The Act, called the Construction Defect Action Reform Act, has implications for new construction and remodeling.
The Act includes (1) a requirement for notice to members of homeowners’ associations before construction defect litigation is served on a defendant; (2) a restriction on claims for technical building code violations in residential construction; (3) a requirement for a list of construction defects to be provided by a claimant within 60 days after commencing a lawsuit or arbitration for construction defects; and (4) a change to the deadline for any claim by one defendant to obtain reimbursement from another person who may be liable. The latter provision requires a lawsuit for reimbursement to be brought within 90 days after settlement or final judgment in the underlying dispute. It may be considered the most significant feature of the Act.
If you employ someone to perform renovations or repairs that you believe are defective, you need to follow the notice process before suing the contractor. If you had your home inspected prior to purchasing it and later discovered a defect, you need to follow the notice process before suing an inspector. Anyone performing or supervising any renovations, repairs or inspections falls under the new law.