Construction defect bill falls in state Senate

By Cy Ryan

Monday, June 6, 2011 | 11:11 p.m.

CARSON CITY -- Controversial construction defect legislation being pushed by Assembly Speaker John Oceguera went down to defeat late Monday in the waning hours of the 2011 Legislature.

In a 9-12 vote, Assembly Bill 401 was voted down in the state Senate.

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.

Contractor Tom Gallagher called the bill a “step backward.” The legislation, he said, “solely benefits the plaintiffs’ lawyer.”

John Madole of the Nevada General Contractor Association said there was “nothing meaningful” in the bill.

Oceguera acknowledged the bill was “fairly contentious” but said he had discussed the issue with the governor and legislative leaders. Construction defects became a key point in negotiations over the budget, according to sources.

The bill had gained approval from the Senate Finance Committee on a 4-3 voice vote. But when it got to the Senate floor Monday night, Democratic Sens. Michael Schneider and Allison Copening joined with Republican senators to defeat the measure.