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SB0866 • 2026

Statutes of Limitations and Repose

AN ACT to amend Tennessee Code Annotated, Title 28, relative to the dispute resolution process for matters involving real property.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Stevens, Hicks G
Last action
2026-04-13
Official status
Signed by Governor.
Effective date
Not listed

Plain English Breakdown

The official source does not provide a specific effective date for the bill. The candidate explanation includes an updated effective date, which was confirmed in the amendment but should be noted as changed from July 1, 2025 to July 1, 2026.

Statutes of Limitations and Repose

This bill amends Tennessee's law to allow counterclaims, third-party complaints, and cross-claims related to real property construction issues even if they are filed after the four-year statute of repose has passed, provided that the original claim was not time-barred by another statute of limitations.

What This Bill Does

  • Changes the existing rule requiring claims against builders or designers for damages within four years after a project is completed.
  • Creates an exception allowing counterclaims, third-party complaints, and cross-claims to be made even if they are filed more than four years after substantial completion of construction, as long as the original claim was not time-barred by another statute of limitations.

Who It Names or Affects

  • People who build or design improvements to real property in Tennessee.
  • Individuals and businesses involved in legal disputes over construction issues.

Terms To Know

statute of repose
A law that sets a time limit after which certain types of lawsuits cannot be filed, even if the damage or injury is discovered later.
counterclaim
A claim made by a defendant in a lawsuit against the plaintiff for related matters.

Limits and Unknowns

  • The bill's effective date was changed from July 1, 2025, to July 1, 2026.
  • It does not specify what happens if the original claim was time-barred by another statute of limitations.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB0734

Plain English: The amendment changes Tennessee law to set a four-year time limit for filing disputes related to construction or design defects after a building project is completed.

  • Sets a new four-year statute of limitations for actions involving deficiencies in the design, planning, supervision, observation of construction, or construction of an improvement to real property.
  • Applies this limitation to claims for damages due to injury to property (real or personal) and personal injuries or wrongful death arising from such deficiencies.
  • The amendment does not specify exceptions or details about how the new statute interacts with existing laws, which may be unclear without further context.
  • It is unclear what specific actions are exempted by § 28-1-114(a) mentioned in the text.
Amendment 1-0 to SB0866

Plain English: The amendment changes the time limit for filing certain types of lawsuits related to construction defects in Tennessee.

  • Sets a four-year deadline from substantial completion of an improvement for actions, arbitrations, or other binding dispute resolution proceedings involving deficiencies in design, planning, supervision, observation of construction, or construction itself.
  • Establishes a five-year limit for counterclaims and third-party complaints within the same types of proceedings.
  • The amendment text does not specify what happens if an action is brought under § 28-1-114(a), leaving some uncertainty about its impact on such cases.
  • It's unclear how this change will affect existing laws and practices in Tennessee regarding construction disputes.
Amendment 2-0 to SB0866

Plain English: The amendment changes Tennessee law to set a four-year time limit for filing disputes related to construction or design issues after a building project is completed.

  • Sets a new four-year statute of limitations for actions involving deficiencies in the design, planning, supervision, observation of construction, or construction of an improvement to real property.
  • Applies this limitation to claims for damages due to injury to property (real or personal) and injuries to persons or wrongful death arising from such deficiencies.
  • The amendment does not specify what happens if the original bill's language is unclear or incomplete, which could lead to legal uncertainties.
  • It excludes actions brought under § 28-1-114(a) from this new four-year limitation period.

Bill History

  1. 2026-04-13 Tennessee General Assembly

    Signed by Governor.

  2. 2026-04-02 Tennessee General Assembly

    Transmitted to Governor for action.

  3. 2026-04-01 Tennessee General Assembly

    Signed by H. Speaker

  4. 2026-03-30 Tennessee General Assembly

    Signed by Senate Speaker

  5. 2026-03-26 Tennessee General Assembly

    Enrolled and ready for signatures

  6. 2026-03-26 Tennessee General Assembly

    Passed H., Ayes 85, Nays 4, PNV 2

  7. 2026-03-26 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0715)

  8. 2026-03-26 Tennessee General Assembly

    Subst. for comp. HB.

  9. 2026-03-26 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2026-03-26 Tennessee General Assembly

    Comp. SB subst.

  11. 2026-03-19 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  12. 2026-03-19 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/26/2026

  13. 2026-03-18 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/19/2026

  14. 2026-03-18 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  15. 2026-03-16 Tennessee General Assembly

    Passed Senate as amended, Ayes 31, Nays 0

  16. 2026-03-16 Tennessee General Assembly

    Amendment withdrawn. (Amendment 1 - SA0518)

  17. 2026-03-16 Tennessee General Assembly

    Senate adopted Amendment (Amendment 2 - SA0691)

  18. 2026-03-16 Tennessee General Assembly

    Engrossed; ready for transmission to House

  19. 2026-03-13 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/16/2026

  20. 2026-03-11 Tennessee General Assembly

    Placed on cal. Judiciary Committee for 3/18/2026

  21. 2026-03-11 Tennessee General Assembly

    Action def. in Judiciary Committee to 3/18/2026

  22. 2026-03-04 Tennessee General Assembly

    Placed on cal. Judiciary Committee for 3/11/2026

  23. 2026-03-04 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Judiciary Committee

  24. 2026-03-03 Tennessee General Assembly

    Sponsor(s) Added.

  25. 2026-03-02 Tennessee General Assembly

    Senate Reset on calendar for 3/16/2026

  26. 2026-02-27 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/2/2026

  27. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Civil Justice Subcommittee for 3/4/2026

  28. 2026-02-24 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0

  29. 2026-02-18 Tennessee General Assembly

    Placed on Senate Judiciary Committee calendar for 2/24/2026

  30. 2026-02-10 Tennessee General Assembly

    Action deferred in Senate Judiciary Committee to 2/24/2026

  31. 2026-02-03 Tennessee General Assembly

    Placed on Senate Judiciary Committee calendar for 2/10/2026

  32. 2025-03-13 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Judiciary Committee

  33. 2025-02-14 Tennessee General Assembly

    Assigned to s/c Civil Justice Subcommittee

  34. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Judiciary Committee

  35. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  36. 2025-02-06 Tennessee General Assembly

    P2C, ref. to Judiciary Committee

  37. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  38. 2025-02-05 Tennessee General Assembly

    Intro., P1C.

  39. 2025-02-03 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law requires that all actions, arbitrations, or other binding dispute resolution proceedings to recover damages for any deficiency in the design, planning, supervision, observation of construction, or construction of an improvement to real proper
ty, for injury to property, real or personal, arising out of any such deficiency, or for injury to the person or for wrongful death arising out of any such deficiency, must be brought against a person performing or furnishing the design, planning, supervi
si
on, observation of construction, or construction of the improvement within four years after substantial completion of the improvement. This bill creates an exception to this provision for counterclaims, third party complaints, and cross-claims as long as
the original claim was not time barred by an applicable statute of limitations when it was filed.

ON MARCH 16, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 866, AS AMENDED.

AMENDMENT #2 changes the effective date of the bill from July 1, 2025, to July 1, 2026.

Current Bill Text

Read the full stored bill text
HOUSE BILL 734
By Hicks G

SENATE BILL 866
By Stevens

SB0866
002734
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 28,
relative to the dispute resolution process for
matters involving real property.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 28-3-202, is amended by deleting the
section and substituting instead:
With the exception of actions brought pursuant to § 28-1-114(a), all actions,
arbitrations, or other binding dispute resolution proceedings to recover damages for any
deficiency in the design, planning, supervision, observation of construction, or
construction of an improvement to real property, for injury to property, real or personal,
arising out of any such deficiency, or for injury to the person or for wrongful death arising
out of any such deficiency, must be brought against any person performing or furnishing
the design, planning, supervision, observation of construction, or construction of the
improvement within four (4) years after substantial completion of an improvement.
SECTION 2. This act takes effect on July 1, 2025, the public welfare requiring it.