Late in the evening of June 6, 2011, Nevada’s State Assembly Bill 401 was defeated by the state’s Senate. The bill was highly criticized by builders who have been seeking reform to existing construction defect legislation. According to Tom Gallagher, a contractor, the measure “solely benefits the plaintiffs’ lawyer.”
Oceguera, D-Las Vegas, who introduced the bill, said it would clarify the legal definition of construction defects, making it clear that attorneys would receive court-ordered fees only if their clients won. The measure would have also extended the time for such cases to be filed.
But those on the builders’ side of the issue opposed it.
Contractors complained that if a plaintiff in a construction defect case won only $1 in damages, the court could order the builders to pay costly legal fees.