Industry Issues to Be Aware Of (6)

July 19, 2012 | from AdminBerenson No Comments

Connecticut: A Connecticut court ruled that a mechanic’s lien can be valid and enforceable despite an error in completing paperwork because the error did not prejudice the homeowner’s right nor was the error made in bad faith.

Indiana: On insurance-backed remodeling work (such as for a storm-chasing job), Indiana law now requires that the home improvement contract include a notice giving an owner the right to cancel the job if any part of the claim is denied. If the contractor starts work before the insurance claim is processed, the owner’s right to cancel extends only to the part of the job not covered by insurance.

New York: Eric Schneiderman, the state’s new Attorney General, has immediately adopted an interest in home improvement contractors. The Attorney General’s Office announced that it entered into settlement agreements with 47 contractors over alleged violations of New York’s home improvement law, requiring that home improvement contracts be in writing, contain state-required disclosures, etc. NAPAC members operating in NY may consider referring to NAPAC’s New York Operational Guide (available for purchase at

Tennessee: Tennessee has adopted a “loser pays” system that allows judges to assess fees of up to $10,000 on plaintiffs who bring suits determined to have “no basis in fact or law.”