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HB1900
HOUSE OF REPRESENTATIVES
H.B. NO.
1900
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
Relating
to remedies
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1
.
�
Section 657-8,
Hawaii Revised Statutes, is amended to read as follows:
����
"
�657-8
�
Limitation of action for
damages based on construction to improve real property.
�
(a)
�
No
action, whether in contract, tort, statute, or otherwise, to recover damages
for any injury to property, real or personal, or for bodily injury or wrongful
death, arising out of any deficiency or neglect in the planning, design,
construction, supervision and administering of construction, and observation of
construction relating to an improvement to real property shall be commenced
no
more than ten years after the date of completion of the improvement[
.
]
,
subject to the statute of repose provisions under this chapter.
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(b)
�
[
This section shall not be construed to extend any shorter period of
limitation under this chapter, including the six-year statute of limitations
under section 657-1 or the two-year statute of limitations for damages to
persons or property under section 657-7, as applicable, subject to the ten-year
statute of repose under subsection (a).
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(c)
]
�
This section shall not apply to actions for
damages against owners or other persons having an interest in the real property
or improvement based on their negligent conduct in the repair or maintenance of
the improvement or to actions for damages against surveyors for their own
errors in boundary surveys.
�
An
improvement shall be deemed substantially complete upon the earliest of the
following:
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(1)
�
The issuance of a
certificate of occupancy; or
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(2)
�
The filing of an
affidavit of publication and notice of completion within the circuit court of
the judicial circuit where the property is situated in compliance with section
507-43(f).
If the improvement consists of multiple buildings or
improvements, each building or improvement shall be considered as a separate
improvement for the purpose of determining the limitations period set forth in
this section.
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[
(d)
]
(c)
�
This section shall not be construed to
prevent, limit, or extend any shorter period of limitation applicable to
sureties provided for in any contract or bond or any other statute, nor to
extend or add to the liability of any surety beyond that for which the surety
agreed to be liable by contract or bond.
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[
(e)
]
(d)
�
Nothing in this section shall exclude or
limit the liability provisions as set forth in the products liability laws.
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(e)
�
No action, whether in contract, tort,
statute, or otherwise, based on a violation of the applicable building code
shall be commenced unless the violation is a material violation of the
applicable building code.
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(f)
�
For the purposes of this section:
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"Date of completion" means
the time when there has been substantial completion of the improvement or the
improvement has been abandoned.
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"Improvement" has the same
meaning as in section 507-41.
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"Material violation"
means a building code violation that exists within a completed building,
structure, or facility that may reasonably result or has resulted in physical
harm to a person or significant damage to the performance of a building or its
systems.
"
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SECTION
2
.
�
Section 672E-3,
Hawaii Revised Statutes, is amended to read as follows:
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"
�672E-3
�
Notice of claim of
construction defect.
�
(a)
�
A claimant, no later than ninety days before
filing an action against a contractor, shall serve the contractor with a
written notice of claim.
�
The notice of
claim shall:
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(1)
�
State that the
claimant asserts a claim against the contractor for a construction defect in
the design, construction, or remodeling, or any combination thereof, of a
dwelling or premises; and
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(2)
�
Describe the claim
[
in detail
]
with particularity and specificity
sufficient to
determine the circumstances constituting the alleged construction defect [
and
damages resulting from the construction defect.
�
The description shall specifically identify the alleged defect or
problem; provided that a
]
.
�
A
general statement that a construction defect may exist shall be insufficient.
The notice of claim shall not constitute a claim
under any applicable insurance policy and shall not give rise to a duty of any
insurer to provide a defense under any applicable insurance policy unless and
until the process described in section 672E-5 is completed.
�
Nothing in this chapter shall in any way
interfere with or alter the rights and obligations of the parties under any
liability policy.
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(b)
�
If available to the claimant, the claimant shall provide to the
contractor, with the notice of claim, evidence that depicts the nature and
cause of the construction defect and the nature and extent of the repairs
necessary to repair the defect, including the following information if obtained
by the claimant:
�
photographs,
videotapes, and any testing performed.
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(c)
�
Each individual claimant or putative class member shall
comply with this chapter, which includes permitting inspection under section
672E-4 of each dwelling or premises that is the subject of the claim.
�
No person shall be permitted to join a class
action under this chapter unless the person has first complied with this
chapter.
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[
(c)
]
(d)
�
A contractor served with a written notice of
claim shall serve any other appropriate subcontractor with notice of the
claim.
�
The contractor's notice shall
include the claimant's written notice of claim.
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[
(d)
]
(e)
�
After serving the notice of claim, a claimant
shall give to the contractor reasonable prior notice and an opportunity to
observe if any testing is done."
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SECTION
3
.
�
Section 672E-4,
Hawaii Revised Statutes, is amended to read as follows:
����
"
�672E-4
�
Rejection of claim; opportunity to repair
construction defect.
�
(a)
�
The contractor rejects a claimant's claim of construction defects by:
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(1)
�
Serving
the claimant with a written rejection of the claim; or
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(2)
�
Failing
to respond pursuant to subsection (b)(1) or (2) to the notice of claim within
thirty days after service.
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(b)
�
The contractor, within thirty days after service of the notice of claim,
shall serve the claimant and any other contractor that has received the notice
of claim with a written response to the alleged construction defect that:
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(1)
�
Offers
to settle without inspecting the construction defect by:
���������
(A)
�
Monetary
payment;
���������
(B)
�
Making
repairs; or
���������
(C)
�
Both
subparagraphs (A) and (B); or
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(2)
�
Proposes
to inspect the premises of the alleged construction defect that is the subject
of the claim.
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(c)
�
Within thirty days following any proposal for inspection under
subsection (b)(2), the claimant shall [
accept a contractor's proposal to
inspect.
�
After accepting the
contractor's proposal to inspect, the
]
provide access to inspect the
premises.
�
The
claimant and
contractor shall agree on a time and date for the inspection, which shall occur
within thirty days of the claimant's acceptance of the contractor's proposal [
to
inspect,
]
for inspection,
unless the claimant and contractor agree
to a later date.
�
The claimant shall
provide reasonable access to the dwelling or premises during normal working
hours to:
����
(1)
�
Inspect
the premises;
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(2)
�
Document
any alleged construction defects; and
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(3)
�
Perform
any testing required to evaluate the nature, extent, and cause of the asserted
construction defect, and the nature and extent of any repair or replacement
that may be necessary to remedy the asserted construction defect;
provided
that if the claimant is an association under chapter 514B, the claimant shall
have forty-five days to provide access.
�
If access to an individual condominium unit is necessary, and the
association is unable to obtain access, then the association shall have a
reasonable time to provide access.
�
If
destructive testing is required, the contractor shall give advance notice of
tests and return the premises to its pre-testing condition.
�
If inspection or testing reveals a condition
that requires additional testing to fully and completely evaluate the nature,
cause, and extent of the construction defect, the contractor shall provide
notice to the claimant of the need for additional testing.
�
The claimant shall provide additional access
to the dwelling or premises.
�
If a claim
is asserted on behalf of owners of multiple dwellings, or multiple owners of
units within a multi-family complex, the contractor shall be entitled to inspect
each of the dwellings or units.
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[
(d)
�
Inspections and testing performed pursuant to this section
shall be completed within nine months of the contractor's request to inspect,
unless the parties agree or the court orders otherwise.
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(e)
]
(d)
�
Within fourteen days following the inspection
and testing, the contractor shall serve on the claimant a written:
����
(1)
�
Offer to fully or
partially remedy the construction defect at no cost to the claimant.
�
The offer shall include a description of
construction necessary to remedy the construction defect and a timetable for
the completion of the additional construction;
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(2)
�
Offer to settle
the claim by monetary payment;
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(3)
�
Offer for a
combination of repairs and monetary payment; or
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(4)
�
Statement that the
contractor will not proceed further to remedy the construction defect.
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[
(f)
�
Upon receipt of the offer made under
subsection (b)(1) or (e)(1), (2), or (3), the claimant may, within thirty or
forty-five days, whichever applies pursuant to section 672E-5(a), accept the
offer and authorize the contractor to proceed with any repairs offered under
subsection (b)(1) or (e)(1) or (3), or deny the offer.
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(g)
]
(e)
�
Any offer of settlement under this section
shall reference this section, and shall state that a claimant's failure to
respond with a written notice of acceptance or rejection within thirty or
forty-five days, whichever applies pursuant to section 672E-5(a), shall mean
that the offer is rejected.
�
Failure to
serve a written offer or statement under this section shall be deemed a
statement that the contractor will not proceed further.
"
����
SECTION
4
.
�
Section 672E-6,
Hawaii Revised Statutes, is amended to read as follows:
����
"
�672E-6
�
Offer of settlement
.
�
(a)
�
Any time after the service of the notice of claim, any party may serve
an offer of settlement.
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(b)
�
If the offer is accepted, the parties shall be deemed to have resolved
the claim in whole or in part pursuant to the offer.
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(c)
�
An offer not accepted within the time period required under section
672E-5, or ten days after service for any subsequent offers, shall be deemed
withdrawn and evidence thereof shall not be admissible except to determine
entitlement to recovery of
attorneys' fees and
costs[
.
�
If the judgment or award obtained in a
subsequent proceeding is not more favorable than the offer, the offeree shall
pay the costs incurred by the offeror after the making of the offer.
�
The fact that an offer is made and not accepted
does not preclude a subsequent offer.
]
and reasonableness of the
contractor's offer of settlement in subsection (d).
����
(d)
�
If a claimant rejects a contractor's
reasonable offer of settlement, the claimant's cost of repair recovery shall be
limited to the reasonable value of the repair determined as of the date of the
offer and the amount of the offered monetary payment.
�
Any additional damages caused by the alleged
construction defect shall not be limited by this section.
"
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SECTION 5.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
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SECTION 6.
�
This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
Statute
of Repose; Contractor Repair Act; Notice of Claim; Inspection; Repair;
Rejection of Claims; Limitations on Recovery
Description:
Clarifies
the applicability of the statute of repose for actions arising from
construction defects.
�
Repeals the
two-year limitation for actions arising from construction defects.
�
Clarifies the required contents of a notice
of claim of construction defect served on a contractor.
�
Specifies that claimants must comply with the
Contractor Repair Act and bars persons from joining a class for failure to
comply with the Contractor Repair Act.
�
Amends the process and time frame for a claimant to accept a contractor's
offer to settle or inspect.
�
Limits the
amount a claimant can recover if the claimant rejects a contractor's reasonable
proposal for inspection or a reasonable offer to remedy.
�
Clarifies the consequences of rejecting an
offer of settlement.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.