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In the past 10 years, more than 25 states have enacted specific builder-friendly construction defect notice and resolution statutes that may affect your subrogation claims. If you are not aware of the provisions in your state, then your otherwise solid subrogation claim could be at risk.

In 1989, Texas enacted the nation’s first Residential Construction Liability Act (RCLA), Tex. Prop. Code §27.001 et seq. Sponsors of RCLA argued that it was needed to remedy an explosion of residential construction litigation brought against home builders under the Texas Deceptive Trade Practices Act (DTPA). Following the passage of the Texas RCLA, builders’ organizations in other states began lobbying for adoption of variations of the RCLA. In 2010, Conn. became the most recent state to enact a version of a RCLA statute.

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