Nevada Construction Defect Law (Chapter 40) Faces More Scrutiny

David McGrath Schwartz, of the Las Vegas Sun, reports that the Nevada Legislature’s 2013 agenda will likely include a review of the existing construction defect laws:

Known as Chapter 40, for its place in Nevada Revised Statute, the law was written in the 1990s to take thousands of disputes between homeowners and builders out of the courts.

It unburdened the judicial system, but construction companies, subcontractors and developers say the law has become a cash cow for trial attorneys, a burden for the construction industry and inefficient for homeowners seeking to get their homes repaired.

A sweeping federal investigation of prominent construction defect attorney Nancy Quon and construction company owner Leon Benzer is the most high-profile example of flaws in the law, critics say.

Because of the Nancy Quon and Leon Benzer investigation, combined with extremely difficult economic realities for the Nevada construction industry, the Chapter 40 statutes are facing additional scrutiny. Read Schwartz’ full article for a great overview of construction defect litigation in Nevada.

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