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Panel clears amendment clarifying four-year statute of repose in construction-defect suits
Summary
The subcommittee added an amendment to House Bill 7-34 and voted to send it to full judiciary; the bill aligns state law with recent federal-circuit interpretations and would permit adding a necessary party after a timely-filed initial lawsuit under the four-year repose period.
Sponsor explained that HB 7-34 addresses the four-year statute of repose in construction-defect cases and responds to a U.S. circuit decision interpreting "four years" strictly. The bill would permit a necessary party to be added later if the original suit was timely filed within the four-year repose period. The sponsor said the bill is an initiative of the Associated Builders and Contractors, Greater Tennessee chapter.
"This bill deals with 4 year statute of repose and construction defect cases," the sponsor said, noting that a Sixth Circuit decision has been clear that "4 years simply means 4 years" and the bill aligns state law with that interpretation. Representative Johnson and others asked whether the four-year cut-off would limit plaintiffs when a defect reveals itself later; supporters argued the change provides certainty for insurers and defense counsel. The committee added an amendment to update the effective date and sent the bill to full judiciary as amended (6 ayes, 0 nos, 1 present, not voting).
The record shows the amendment updated an effective date and the bill's sponsor stood ready to answer questions; the committee vote sends the amended measure forward for further consideration.
