Home builders facing lawsuits get help from lawmakers | KOB 4

Home builders facing lawsuits get help from lawmakers

Nathan O'Neal
Updated: January 27, 2020 06:38 PM
Created: January 27, 2020 04:34 PM

ALBUQUERQUE, N.M. – Lawmakers are working to help home builders and subcontractors in Albuquerque that are facing an assortment of broadly targeted lawsuits. The litigation is straining the construction industry and taking a toll on the housing market.

“If this carries on, it will have devastating impacts on construction here in New Mexico,” said John Garcia, a member of the Home Builders Association.


KOB 4 found examples of law firms targeting several sub-divisions, claiming the homes had defects. Rep. Daymon Ely is co-sponsoring House Bill 64, which would require anyone suing contractors to specify the defects.

“The problem is that contractors, when they get sued, general contractor doesn't know what the defect is,” he said. “So all of the subcontractors get sued, the landscaping contractor, the roofing contractor.”

Clarifying the defect will prevent all of the subcontractors from getting sued, and in-turn, protect consumers, according to Ely. 

“The homeowner still has access to the courts, so they still get to sue, they still get their day in court, but the general contractor has a better idea of what's wrong with the house,” Ely aid.

On Monday, the bill passed the House Commerce and Economic Development Committee. The bill's sponsor expects it to reach the house floor with bi-partisan support.

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