We’ve written quite a bit lately about the many ways SB 244 could hurt South Carolina residents, property owners, business owners and others. The only ones to benefit from the far-reaching tort reform that’s been proposed would be insurance companies–big businesses that would increase profits by cutting down on compensation for people who were injured or suffered property damage.
During the February 13 Senate Judiciary Subcommittee hearing, legislators signaled that they were close to wrapping up information gathering. One more hearing will be held on Wednesday morning, and committee members have been asked to submit any proposed amendments no later than Thursday.
In short, if you haven’t already done so, it’s time to call your legislators. Find more information or look up your legislators here: https://fairsc.com
SC Senate Witnesses Discuss Dangers of SB 244
Aside from the timelines described above, the Senate hearing on February 13 focused almost exclusively on a single issue. Those testifying before the subcommittee debated the change that would take away the rights of homeowners and building owners to sue in many situations where they found out later that there were big problems with their property due to contractor negligence.
Supporters of SB 244, including one attorney who testified at the February 13 hearing, argue that contractors need finality. So, they say, the homeowner’s right to recover fair compensation should be cut off if they don’t discover the defect quickly enough. But others raised serious concerns about that approach.
All Building Code Violations Should Be Considered Material
One construction lawyer stressed that the building code is a minimum standard and it exists for “the life and health and welfare of South Carolina Citizens.” Therefore, he argued, every building code violation should be considered material. Otherwise, the minimum standards set by the state and municipalities are effectively lowered, lowering overall quality expectations in the industry.
He succinctly stated his position this way: “If it’s done incorrectly, it needs to be fixed.”
Property Owners Get Stuck with Unmanageable Costs
Senators added to the discussion with hypotheticals that illustrate the risks associated with cutting off property owners’ rights. Imagine, for example, that stairs weren’t built to code–maybe each step was a little too tall. The property owner might not notice that right away, but several issues could arise later. For instance:
- Someone might trip and injure themselves on the stairs and sue the property owner for not maintaining the premises in safe condition
- The property owner might find out about the problem several years after the home was built when it was too late to sue–but they would be required to disclose the defect, seriously impacting resale price
- The property owner might never discover the defect, then find themself unable to sell the property after a building inspector for the buyer notices the problem
The impact on commercial property owners could be just as significant. While they tend to have more resources than homeowners, they might also face the need to shut down an entire building while repairs were made, and/or pay to have the same fix made in each of 500 units.
Contractors Are In the Best Position to Prevent Defects
The bottom line is that when construction defects are discovered down the road, someone has to pay for the fix. As one witness pointed out last week, the contractor is the one who controls whether or not the building code is followed, controls the level of care put into construction, and is onsite every day observing the work in progress.
No one else–not the future homeowner and not even a building inspector–can see what’s under the foundation and inside the walls. Shifting responsibility for contractor errors or cut corners to someone who had no way to identify or prevent them is unfair.
Tort Reform Will Hurt South Carolina
The construction issue discussed here is just one of the many ways South Carolina residents would be hurt by the proposed tort reform. Others include a license for insurance companies to act in bad faith, the ability to blame people who aren’t part of the case, a reduction in uninsured motorist coverage and more.
Protect your family and your neighbors. Call your SC legislator today and tell them to vote no on tort reform.