Nevada Legislature: Committee passes bill to curb construction defect suits

A bill aimed at curbing frivolous lawsuits over construction defects has passed its first hurdle in the Nevada Legislature.

Members of the Assembly Judiciary Committee passed AB125 on Friday in a 8-5 vote.

Republicans say the bill would fix a law that was originally meant to protect homeowners when flaws surfaced in their houses, but has opened the floodgates for expensive litigation and created a financial incentive for attorneys to file suit.

Democratic opponents say they worry the bill helps contractors while making it harder for homeowners to get recourse when they encounter a problem with their house.

An amendment added Friday removes the possibility of criminal penalties for homeowners if the wrongly describe their defect.

The bill now heads to the Assembly floor for a vote.