HB 2475 — Concerning the tolling of construction defect claims.

H-4514.1SUBSTITUTEH-3565.1HOUSE HOUSE BILL 2475State of Washington65th Legislature2018 Regular SessionBy House Judiciary (originally sponsored by Representative Ryu)READRyuRead FIRSTfirst TIMEtime 02/02/18.AN01/10/18. ACT Relating to the tolling of construction defect claims;

andReferred amending RCW 64.50.010, 64.50.020, 4.16.325, 4.16.310, and 64.34.452.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 64.50.010 and 2002 c 323 s 2 are each amended to readCommittee ason follows:UnlessJudiciary.AN theACT contextRelating clearly requires otherwise, the definitions in this section apply throughout this chapter.(1) "Action" means any civil lawsuit or action in contract or tort for damages or indemnity brought against a construction professional to assert a claim, whether by complaint, counterclaim, or cross-claim, for damage or the losstolling of useconstruction of real or personal property caused by a defect inclaims; the construction of a residence or in the substantial remodel of a residence.

and amending RCW 64.50.010, 64.50.020, and 4.16.325.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 64.50.010 and 2002 c 323 s 2 are each amended to read as follows:Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.(1) "Action" means any civil lawsuit or action in contract or tort for damages or indemnity brought against a construction professional to assert a claim, whether by complaint, counterclaim, or cross-claim, for damage or the loss of use of real or personal property caused by a defect in the construction of a residence or in the substantial remodel of a residence.

Claims for defects discovered after the commencement or recommencement of an action may be added to such action only after providing notice to the construction professional of the defect and allowing for response under subsection (2) of this section.Sec. 3.  RCW 4.16.325 and 2002 c 323 s 8 are each amended to read as follows:If a claimant serves a written notice of claim ((is served under RCW 64.50.020 within the time prescribed for the filing of an action under this chapter, the statutes of limitations for construction-related claims are tolled until sixty days after the period of time during which the filing of an action is barred under RCW 64.50.020)) on a construction professional under RCW 64.50.02064.50.020, within the time prescribed for the filing of an action under this chapter, the applicable statutes of limitation and repose for all claims relating to the residence are tolled from claimant's service of the original notice of claim until one hundred five days after termination of the notice and opportunity to cure process as provided in RCW 64.50.020;

however, the foregoing tolling applies to claims by one construction professional against another only if the construction professional serves the claimant's notice of claim upon the other construction professional within sixty days of receipt of the claimant's notice of claim or amended notice of claim.Sec. 4.  RCWclaim.--- 4.16.310END and--- 2002 c 323 s 9 are each amended to read as follows:All claims or causes of action as set forth in RCW 4.16.300 shall accrue, and the applicable statute of limitation shall begin to run only during the period within six years after substantial completion of construction, or during the period within six years after the termination of the services enumerated in RCW 4.16.300, whichever is later.

The phrase "substantial completion of construction" shall mean the state of completion reached when an improvement upon real property may be used or occupied for its intended use.

Any cause of action which has not accrued within six years after such substantial completion of construction, or within six years after such termination of services, whichever is later, shall be barred:

PROVIDED, That this limitation shall not be asserted as a defense by any owner, tenant or other person in possession and control of the improvement at the time such cause of action accrues.

The limitations prescribed in this section apply to all claims or causes of action as set forth in RCW 4.16.300 brought in the name or for the benefit of the state which are made or commenced after June 11, 1986.((If a written notice is filed under RCW 64.50.020 within the time prescribed for the filing of an action under this chapter, the period of time during which the filing of an action is barred under RCW 64.50.020 plus sixty days shall not be a part of the period limited for the commencement of an action, nor for the application of this section.))Sec. 5.  RCW 64.34.452 and 2004 c 201 s 7 are each amended to read as follows:(1) A judicial proceeding for breach of any obligations arising under RCW 64.34.443, 64.34.445, and 64.34.450 must be commenced within four years after the cause of action accrues:

PROVIDED, That the period for commencing an action for a breach accruing pursuant to subsection (2)(b) of this section shall not expire prior to one year after termination of the period of declarant control, if any, under RCW 64.34.308(((4))) (5).

Such periods may not be reduced by either oral or written agreement, or through the use of contractual claims or notice procedures that require the filing or service of any claim or notice prior to the expiration of the period specified in this section.(2) Subject to subsection (3) of this section, a cause of action ((or [for])) for breach of warranty of quality, regardless of the purchaser's lack of knowledge of the breach, accrues:(a) As to a unit, the date the purchaser to whom the warranty is first made enters into possession if a possessory interest was conveyed or the date of acceptance of the instrument of conveyance if a nonpossessory interest was conveyed;

and(b) As to each common element, at the latest of (i) the date the first unit in the condominium was conveyed to a bona fide purchaser, (ii) the date the common element was completed, or (iii) the date the common element was added to the condominium.(3) If a warranty of quality explicitly extends to future performance or duration of any improvement or component of the condominium, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier.(4) If a written notice of claim is served under RCW 64.50.020 within the time prescribed for the filing of an action under this chapter, the statutes of limitation in this chapter and any applicable statutes of repose for construction-related claims are tolled ((until sixty days after the period of time during which the filing of an action is barred under RCW 64.50.020)) in accordance with section 3 of this act.(5) Nothing in this section affects the time for filing a claim under chapter 64.35 RCW.--- END ---