House File 194 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON JUDICIARY

                                 (SUCCESSOR TO HSB 21)

                                      A BILL FOR

  1 An Act relating to statute=of=repose periods for improvements
  2    to real property involving residential and nonresidential
  3    construction and including applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1102HV (1) 86
    jh/rj

PAG LIN



  1  1    Section 1.  Section 614.1, subsection 11, Code 2015, is
  1  2 amended to read as follows:
  1  3    11.  Improvements to real property.
  1  4    a.  Residential construction.  In addition to limitations
  1  5 contained elsewhere in this section, an action arising out of
  1  6 the unsafe or defective condition of an improvement to real
  1  7 property residential construction based on tort and implied
  1  8 warranty and for contribution and indemnity, and founded on
  1  9 injury to property, real or personal, or injury to the person
  1 10 or wrongful death, shall not be brought more than fifteen years
  1 11 after the date on which occurred the act or omission of the
  1 12 defendant alleged in the action to have been the cause of the
  1 13 injury or death. However, this subsection paragraph does not
  1 14 bar an action against a person solely in the person's capacity
  1 15 as an owner, occupant, or operator of an improvement to real
  1 16 property.
  1 17    b.  Nonresidential construction.  In addition to limitations
  1 18 contained elsewhere in this section, an action arising out
  1 19 of the unsafe or defective condition of an improvement to
  1 20 nonresidential construction based on tort and implied warranty
  1 21 and for contribution and indemnity, and founded on injury to
  1 22 property, real or personal, or injury to the person or wrongful
  1 23 death, shall not be brought more than ten years after the date
  1 24 on which occurred the act or omission of the defendant alleged
  1 25 in the action to have been the cause of the injury or death.
  1 26 However, this paragraph does not bar an action against a person
  1 27 solely in the person's capacity as an owner, occupant, or
  1 28 operator of an improvement to real property.
  1 29    c.  Definitions.  For purposes of this subsection,
  1 30 "residential construction" means the same as defined in
  1 31 section 572.1. "Nonresidential construction" means all other
  1 32 construction that is not residential construction.
  1 33    Sec. 2.  APPLICABILITY.  This Act does not apply to
  1 34 residential=construction or nonresidential=construction
  1 35 projects in existence prior to the effective date of this Act.
  2  1                           EXPLANATION
  2  2 The inclusion of this explanation does not constitute agreement with
  2  3 the explanation's substance by the members of the general assembly.
  2  4    This bill relates to the statute=of=repose period in a
  2  5 case arising out of the unsafe or defective condition of an
  2  6 improvement to nonresidential construction.
  2  7    Under current law, a case arising out of the unsafe or
  2  8 defective condition of an improvement to real property, whether
  2  9 residential or nonresidential construction, is subject to
  2 10 a 15=year statute of repose. Such cases are based upon an
  2 11 injury to property or an injury or death of a person. The bill
  2 12 reduces the period of the statute of repose for cases relating
  2 13 to nonresidential construction from 15 years to 10 years. The
  2 14 statute=of=repose period for cases relating to residential
  2 15 construction remains 15 years.
  2 16    The bill defines "residential construction" by cross
  2 17 reference to the definition of that term contained in Code
  2 18 chapter 572, which relates to mechanic's liens. Code section
  2 19 572.1 defines "residential construction" as construction on
  2 20 single=family or two=family dwellings occupied or used, or
  2 21 intended to be occupied or used, primarily for residential
  2 22 purposes. The bill defines "nonresidential construction" as
  2 23 any construction that is not residential construction.
  2 24    A statute=of=repose period differs from a
  2 25 statute=of=limitations period in that a statute of repose
  2 26 establishes a time period after which a lawsuit based upon
  2 27 negligence in an improvement to real property cannot be filed
  2 28 regardless of whether an injury to a person or to property has
  2 29 occurred. A statute=of=limitations period begins at the date
  2 30 of the injury or upon discovery of the deficiency.
  2 31    The bill does not reduce the statute of repose for
  2 32 residential and nonresidential construction projects in
  2 33 existence prior to the effective date of the Act.
       LSB 1102HV (1) 86
       jh/rj