2007-07-27

APPEALS COURT CLARIFIES DEFECTS CLAIM NOTICE REQUIREMENTS

Two recent cases from the Minnesota Court of Appeals clarified how notice must be provided to the builder before a homeowner can pursue a statutory warranty claim for defective construction.  As background, the statute involved requires a homeowner to provide notice to the builder within six months of the date of discovery of defective work.First, the Court of Appeals ruled that service of a detailed summons and complaint (which included a detailed inspection report) complied with the 6-month written notice requirement in the home warranty statute.  Peterson v. Johnson, (Minn. Ct. App. A06-1830, June 26, 2007)Next, the Court of Appeals discussed whether a builder or its insurer had waived the notice requirement, or whether the builder might be estopped from raising the lack of written notice.  The Court ruled the homeowners had viable claims on those issues, and remanded to the District Court for more findings.  Van Dang vs. Crist Construction, Inc. (Minn. Ct. App. A06-1798, July 17, 2007).  While this decision affirms that separate written notice to the builder sometimes might not be neccessary, any homeowner with notice of defective work should be wary of relying upon statements by the builder or its insurer, and should make sure to consult with an attorney as soon as defective work is discovered or suspected.A related Court of Appeals decision also ruled, inter alia,  that the 2004 amendment to Minn. Stat. 541.051 did not apply retroactively.  The 2004 amendment in question limited to two years the period in which a claim for breach of statutory home warranties can be brought.  Sletto vs. Wesley Construction, Inc., (Minn. Ct. App. A06-1413, July 3, 2007)