SUMMIT COUNTY - Local legislative representatives responded this week to complaints from the Summit County Builders Association over how the politicians voted on a bill builders say could potentially put small construction companies out of business.

House Bill 1338, or the Homeowner Protection Act of 2007, passed the state House and Senate last legislative session and was signed into law in April.

The bill eliminates certain restrictions on legal rights for property owners relative to defective construction.

State Rep. Dan Gibbs, D-Silverthorne, and Senate President Joan Fitz-Gerald, D-Coal Creek Canyon, both of whom represent Summit County, voted in favor of the bill, which passed almost exactly along party lines.

The local builders association penned an open letter earlier this week to Gibbs and Fitz-Gerald asking why they supported legislation that they feel opens the door to frivolous lawsuits and could ultimately mean higher prices for local home buyers.

In response, both Gibbs and Fitz-Gerald called House Bill 1338 a consumer protection measure that gives homeowners legal recourse against a builder who leaves them with a defective home.

"This is simply prohibiting boilerplate language in contracts on new homes that says no matter what's wrong with it, I can't sue you," Fitz-Gerald said.

Gibbs, who said he voted for the bill to protect people who are trying to live the American Dream by buying their own home, said he doesn't think builders will be affected so long as they stand behind their product.

"If you don't build a defective home, you have nothing to worry about," Gibbs said.

But, Summit County Builders Association president Dave Koons thinks the bill will have serious repercussions.

For instance, Koons said he writes an express warranty for his clients, which explains that they have a responsibility to maintain the home. Per that warranty, a problem with the home as a result of neglect couldn't be the basis for a lawsuit.

The new bill would open express warranties up to limitless lawsuits, Koons said.

"This law puts me in a position to say, 'I predict everything that Mother Nature is going to throw at us and I warranty it,'" Koons said.

Koons said the money and time required to deal with multiple lawsuits could put small home builders out of business. Also, he predicts that it could cause builders' general liability insurance to skyrocket by as much as 50 percent, a cost that would trickle down to the home buyer.

Fitz-Gerald disagrees.

"Frankly, I think they have Chicken Little attitude - the sky is falling - on this and it's not that far reaching," she said.

The builders plan to meet with Gibbs on Tuesday to further discuss their concerns.



Read Sen. Joan Fitz-Gerald's open letter to Summit County residents regarding House Bill 1338, PAGE A13.



Nicole Formosa can be reached at (970) 668-4629, or at nformosa@summitdaily.com.