An Act To Create an Alternative Method of Dispute Resolution in Homeowner Claims of Defective Workmanship or Materials for Manufactured Housing
Maine Legislature, Session 122, LD 1403
Committee: Business, Research and Economic Development
Sponsors: COWGER, DAVIS, HASTINGS, PLOWMAN, WESTON, GERZOFSKY, RECTOR, ROBINSON, SMITH

Legislative Document 
No. 1403 
S.P.492 
In Senate, March 22,2005 
An Act To Create an Alternative Method of Dispute Resolution in 
Homeowner Claims of Defective Workmanship or Materials for 
Manufactured Housing 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator COWGER of Kennebec. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: DAVIS of Piscataquis, HASTINGS of Oxford, PLOWMAN of 
Penobscot, WESTON of Waldo, Representatives: GERZOFSKY of Brunswick, RECTOR of 
Thomaston, ROBINSON of Raymond, SMITH of Monmouth. 
Printed on recyc led paper 
Be it enacted by the People:. the State of Maine as follows: 
Sec. 1. 14 MRSA c~ 755 is enacted to read: 
CHAPTER 755 
H(ltE()WBER CLAIMS 
58551. 
Legislatiye findiDgs 
The Legislature finds that it is beneficial to have 
an 
alternative 
method 
to 
resolve 
construction 
disputes 
for 
manufactured 
housing 
to 
reduce 
the 
need 
for 
litigation 
and 
protect 
the 
rights 
of 
homeowners. 
An 
effective 
alternative 
dispute 
resolution 
mechanism 
in 
certain 
construction 
defect 
matters should involve the claimant's filing a notice of claim 
with the manufacturer or dealer of the manufactured housing that 
the claimant asserts is responsible for the defect and should 
provide the manufacturer or dealer of the manufactured housing 
with an opportunity to 
resolve 
the 
claim without resort to 
further legal process. 
58552. 
Definitions 
1. 
Action. 
"Action" means a civil action or arbitration 
proceeding for damages or indemnity asserting a claim for damage 
to or loss of a 
residence or personal property caused by an 
alleged 
construction 
defect, 
but 
does 
not 
include 
an 
administrative action or civil action or arbitration proceeding 
asserting a claim for alleged personal injuries arising out of an 
alleged construction defect. 
2. 
Association. 
"Association" 
means 
an 
association 
organized pursuant to the laws of the State that represents the 
interests 
of 
a 
group 
of 
owners 
of 
residential 
property, 
including, 
but not limited to, 
a 
condominium association, 
a 
cooperative or 
an association that represents 
the 
owners 
of 
mobile homes on rented lots in a mobile home park. 
3. 
Claimant. 
"Claimant" means a homeowner who asserts a 
claim 
against 
a 
contractor 
concerning 
a 
defect 
in 
the 
construction of a residence or in the substantial remodeling or 
repair of a residence. "Claimant" does not include a contractor, 
subcontractor, supplier or design professional. 
4. 
Construction defect. 
"Construction defect" 
means 
a 
deficiency in or arising out of the design, 
specifications, 
surveying, 
planning, 
supervision, 
observation of construction, 
construction, repair, alteration or remodeling of a 
residence, 
Page l-LR0685(1) 
any appurtenance to the residence or the real property to which 
the residence or appurtenance is affixed resulting from: 
A. 
Defective material, products or components used in the 
construction or remodeling; 
B. 
A violation of the applicable laws or codes in effect at 
the time of construction or remodeling that gives rise to a 
cause of action under section 8553; 
C. 
A failure of the design of the residence to meet the 
applicable professional standards of care at the time of 
governmental approval; or 
D. 
A failure to construct or 
remodel 
the 
residence in 
accordance with generally accepted trade standards at the 
time of construction. 
5. 
Contractor. 
"Contractor" means a person licensed under 
Title 10, section 9021. 
6. 
Homeowner. 
"Homeowner" means a person, company, 
firm, 
partnership, 
corporation or association that contracts with 
a 
contractor for the design, 
development, 
construction, 
sale or 
construction and sale of a residence; for the repair of a new or 
existing residence; or for the construction, alteration, addition 
or repair of an appurtenance to a 
new or existing residence. 
"Homeowner" 
includes, 
but 
is 
not 
limited 
to, 
a 
subsequent 
purchaser of a residence from any homeowner. 
1. 
Manufactured housing. 
"Manufactured housing" has the 
same meaning as in Title 10, section 9002, subsection 7. 
8. 
Residence. 
"Residence" 
means 
a 
single-family house, 
duplex or multifamily unit designed for residential use in which 
title to each individual unit is transferred to the owner under a 
condominium or cooperative system and includes common areas and 
improvements that are owned or maintained by an association or by 
members 
of 
an association. 
"Residence" 
includes 
the 
systems, 
other components, improvements, other structures or recreational 
facilities that are appurtenant to but not necessarily a part of 
the house, duplex or multifamily unit at the time of its initial 
sale. 
9. 
Service. 
"Service" means delivery by certified mail, 
return 
receipt 
requested, 
to 
the 
last 
known 
address 
of 
an 
addressee, acknowledgment of receipt by the addressee or service 
of 
process 
by 
a 
deputy sheriff. 
For 
a 
corporation, 
limited 
partnership, 
limited 
liability 
company 
or 
other 
registered 
business organization, "service" means service on the registered 
agent or other agent for service of process authorized by state 
.lIDL.. 
SUSS). 
Action; dismissal without prejudice 
A claimant may file an action under this chapter for damages 
or indemnity asserting a 
claim for 
damage 
to or 
loss of 
a 
residence or personal property caused by an alleged construction 
defect to manufactured housing in a transaction reguiring a home 
construction contract 
under 
Title 
10, 
chapter 
219-A. 
If 
a 
claimant 
files 
an 
a~ion without 
first 
complying 
with 
the 
reguirements of this chapter, the court shall on application by a 
party to the action dismiss the action without prejudice and the 
action may not be refiled or resumed until the claimant has 
complied with the reguirements of this chapter. 
SUSS4. 
Notice and opportunity to repair 
1. 
Notice of claim required. 
In an action brought under 
this chapter, the claimant shall, no later than 90 days before 
initiating an action against a contractor, provide service of 
written notice of claim on that contractor. The notice of claim 
must state that the claimant asserts a construction defect claim 
and is providing notice of the claim pursuant to the reguirements 
of this chapter. The notice of claim must describe the claim in 
detail 
sufficient 
to 
explain 
the 
nature 
of 
the 
alleged 
construction defect and the damage or loss resulting from the 
defect, if known. In addition, the claimant shall provide to the 
contractor any evidence that depicts the nature and cause of the 
construction defect, 
including expert reports, photograph, 
and 
videotapes, if that evidence would be discoverable under this 
State's evidentiary rules. If, after proper reguest, the claimant 
fails to provide evidence as reguired under this subsection, then 
the claimant may not introduce the evidence in an action. This 
subsection does not preclude a 
claimant from filing an action 
sooner than 90 days after service of written notice as expressly 
provided in subsection 5 or 6. 
2. 
Response to notice of claim. 
Within 
days after 
service of the notice of claim reguired in subsection 1, 
a 
contractor who has received the notice of claim shall serve on 
the claimant, and on any other contractor who has received the 
notice of claim, a written response to the claim that: 
A. 
Offers to remedy the alleged construction defect at no 
cost to the claimant, without inspection, 
and includes a 
detailed description of the proposed repairs necessary to 
remedy the defect and a timetable for the completion of such 
repairs; 
B. 
Offers to compromise and settle the claim by monetary 
payment, without inspection, 
and includes a 
timetable for 
making payment; 
c. 
Offers 
to 
compromise 
and 
settle 
the 
claim 
by 
a 
combination 
of 
repairs 
and 
monetary 
payment, 
without 
inspection, 
and 
includes 
a 
detailed description of 
the 
proposed repairs and a timetable for the completion of such 
repairs and making payment; 
D. 
Proposes to inspect the residence that is the subject of 
the claim; or 
E. 
Disputes the claim and states that the contractor will 
not remedy the defect or compromise and settle the claim. 
3. Proposal for inspection. 
If a proposal for an inspection 
is made pursuant to subsection 2, 
paragraph D, 
the claimant 
shall, within 30 days of receiving the contractor's proposal, 
provide the contractor and 
a 
subcontractor, 
agent, 
expert or 
consultant of the contractor prompt and complete access to the 
residence so that they may inspect the residence, document any 
alleged 
construction 
defect 
and 
perform 
any 
destructive 
or 
nondestructive testing required to fully and completely evaluate 
the nature, extent and cause of the claimed defect and the nature 
and extent of any repairs or replacements that may be necessary 
to remedy the alleged defect. If destructive testing is required, 
the contractor shall give the claimant advance notice of the test 
and shall, after completion of the test, return the residence to 
as close to its pretested condition as is reasonably practicable. 
If 
an 
inspection or test reveals 
a 
condition that 
requires 
additional 
testing 
to 
allow 
the 
contractor 
to 
fully 
and 
completely 
evaluate 
the 
nature, 
cause 
and 
extent 
of 
the 
construction defect, the contractor shall provide notice to the 
claimant of the need for the additional testing and the claimant 
shall provide access as required by this subsection. If a claim 
is 
asserted 
on 
behalf 
of 
owners 
of 
multiple 
residences 
or 
multiple owners of units within a multifamily complex, then the 
contractor is entitled to inspect each residence or unit. 
4. 
Response 
to 
notice 
of 
claim 
following 
inspection. 
Within 15 days following completion of the inspection and testing 
under subsection 3, the contractor shall serve on the claimant a 
written response to the notice of claim that: 
A. 
Offers to remedy the alleged construction defect at no 
cost to the claimant and includes a detailed description of 
the proposed repairs necessary to remedy the defect and a 
timetable for the completion of such repairs; 
B. 
Offers to compromise and settle the claim by monetary 
payment and includes a timetable for making payment: 
C. 
Offers 
to 
compromise 
and 
settle 
the 
claim 
by 
a 
combination of repairs and monetary payment and includes a 
detailed description of the proposed repairs and a timetable 
for the completion of such repairs and making payment; or 
D. 
Disputes the claim and states that the contractor will 
not remedy the defect or compromise and settle the claim. 
5. 
Contr~or' s rejection of claim; failure to respond or 
remedy. If a 
claimant receives 
a 
written statement that the 
contractor will not proceed further to remedy the defect pursuant 
to subsection 2, paragraph E or subsection 4, paragraph D or the 
contractor does not respond to the claimant's notice of claim 
within the time reguired by subsection 2, the claimant may bring 
an action against the contractor for the claim described in the 
notice 
of 
claim without 
further 
notice 
except 
as 
otherwise 
provided by this Title. 
6. 
Claimant's acce.ptance of offer; failure to respond or 
remedy. 
If a claimant accepts a contractor's offer made pursuant 
to subsection 2, paragraph A, 
B or C or subsection 4, paragraph 
A, B or C and the contractor does not make the monetary payment 
or remedy the construction defect within the agreed timetable, 
the claimant may bring an action against the contractor for the 
claim described in the notice of claim without further notice 
except 
as 
otherwise 
provided 
by 
this 
Title 
and 
file 
the 
contractor's offer and claimant's acceptance, 
which creates 
a 
rebuttable 
presumption 
that 
a 
binding 
and 
valid 
settlement 
agreement was created. 
1. 
Claimant's rejection of offer. 
If the claimant rejects 
an offer made by a contractor pursuant to sUbsection 2 or 4 to 
remedy a construction defect or to settle a claim by monetary 
payment or a combination of both, the claimant may serve written 
notice of the claimant's rejection on the contractor. The notice 
must include the known specific factual and legal reasons for the 
claimant's rejection of the contractor's offer. 
8. 
Suppleme~tal offer. 
Upon 
receipt 
of 
a 
claimant's 
rejection and the reasons for the rejection under subsection 7, 
the contractor may, within 15 days of receiving the rejection, 
make a supplemental offer pursuant to subsection 2, paragraph A, 
B or C or subsection 4, paragraph A, B or C. 
9. 
Claimant's rejection of supplemental offer. 
If the 
claimant rejects a 
supplemental offer made by the contractor 
pursuant to subsection 8, the claimant may serve written notice 
of the claimant's rejection on the contractor. The notice must 
include the known specific factual and legal reasons for the 
claimant's rejection of the contractor's supplemental settlement 
offer. 
After securing written notice under this subsection, the 
claimant may bring an action against the contractor for the claim 
described in the notice of claim without further notice except as 
otherwise provided in this Title. 
10. 
Written notice of acce-ptance. 
A claimant who accepts 
an 
offer 
of 
a 
contractor 
under 
this 
section 
to 
remedy 
a 
construction defect must serve the contractor with a written 
notice 
of 
acceptance 
within 
days 
after 
receipt 
of 
the 
contractor's settlement offer. If a claimant initiates an action 
under this chapter without first accepting or rejecting the 
offer, the court shall dismiss the action pursuant to section 
8553. 
11. 
Reasonable access required. 
If a claimant accepts a 
contractor's offer to repair a construction defect described in a 
notice of claim under subsection 1, the claimant shall provide 
the contractor and a subcontractor, agent, expert or consultant 
of the contractor prompt and reasonable access to the residence 
to perform and complete the repair by the timetable stated in the 
settlement offer. 
12. 
Statute of limitations. 
A claimant's service of the 
wr itten notice of claim under subsection 1 tolls the statute of 
limitations relating to any person covered by this chapter until 
the later of: 
A. 
Ninety days after the contractor's receipt of the notice 
of claim pursuant to subsection 1; and 
B. 
Thirt~ days after the end of the repair period or 
pa~ment period stated in the offer, if the claimant has 
accepted the offer. 
B~ stipulation of 
the parties, 
the 
period 
ma~ be extended and the statute Qf limitations is 
tolled during the extension. 
§8555. 
Additional construction defect~additional notice and 
opportunity to repair not required 
A construction defect that is discovered after a claimant 
has provided a contractor with a notice of claim under section 
8554, 
subsection 1 
and that is substantially related to the 
factual 
circumstances, 
acts or omissions giving rise to 
the 
construction defects 
alleged in 
the 
notice of 
claim 
ma~ be 
alleged in an action involving the claims alleged in the notice 
of claim without following the notice of claim procedure reguired 
b~ this chapter. 
§S556. 
Release: insurance 
1. 
Action barred. 
If a claimant accepts an offer under 
section 8554 and the contractor fulfills the offer: 
A. 
The claimant is barred from bringing an action for the 
claim described in the notice of claim under section 8554, 
subsection 1; and 
B. 
The contractor is deemed for insurance purposes to have 
been legally 
obli9.§,te~J~Qn make t):le repairs or the monetary 
payment as if the claimant had recovered a judgment against 
the contractor in the combined amount of the cost of any 
repairs and the amount of any monetary payment. The repairs 
and monetary payment under this paragraph are enforceable as 
a judicial settlement but do not constitute a legal judgment 
against 
the 
contractor 
for 
the 
purposes 
of 
obtaining 
insurance coverage or submitting a competitive bid. 
2. 
Exception for 
code 
violations. 
Notwithstanding 
the 
provisions of subsection 1, if a construction defect that gave 
rise to the notice of claim involves a violation of a legally 
enforceable building code, including, but not limited, to a state 
or local building, electrical, plumbing or other code, 
or the 
provisions of Title 10, chapter 951 and if after the homeowner 
accepts an offer made in compliance with this chapter by the 
contractor and the contractor fulfills that offer the violation 
is not corrected, 
the homeowner may bring an action for that 
portion of the claim described in the notice of claim that 
involves the violation. 
§S557. 
Contract of sale; provisions 
1. 
Notice required. 
Upon entering into a contract for the 
design, development, construction, sale or construction and sale 
of a residence: for the repair of a new or existing residence; or 
for 
the 
construction, 
alteration, 
addition or 
repair 
of 
an 
appurtenance to a new or existing residence in which the contract 
amount exceeds the amount requiring a home construction contract 
pursuant to Title 10, chapter 219-A, the contractor must provide 
written notice to the homeowner of the contractor's right to 
resolve 
alleged 
construction defects 
before 
a 
homeowner 
ma~ 
commence litigation against the contractor under this chapter. 
The notice required by this section must be conspicuous and may 
be included as part of the contract. 
2. 
Form of notice. 
The notice required by subsection 1 
must be in substantially the following form: 
MAINE LAW CONTAINS 
IMPO~5'ANT R~UlJ~EMENTS YOU MUST FOLLOW BEFORE 
YOU MAY FILE A LAWSUIT OR OTHER ACTION FOR DEFECTIVE CONSTRUCTION 
AGAINST 
THE 
CONTRACTOR 
WHO 
CONSTRUCTED, 
REMODELED 
OR 
REPAIRED 
YOUR 
HOME. 
NINETY 
DAYS 
BEFORE 
YOU 
FILE YOUR 
LAWSUIT 
OR 
OTHER 
ACTION, 
YOU MUST SERVE THE CONTRACTOR WITH A WRITTEN NOTICE OF 
ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE. 
UNDER THE 
LAW, A CONTRACTOR HAS THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR 
AND/OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY 
OFFER 
MADE 
BY 
A CONTRACTOR. 
THERE 
ARE 
STRICT 
DEADLINES 
AND 
PROCEDURES UNDER STATE LA1L AND FAILURE TO FOLLOW THEM MAY AFFECT 
YOUR ABILITY TO FILE A LAWSUIT OR OTHER ACTION. 
~58. Limitations 
The procedures in this chapter do not create a cause of 
action on behalf of a claimant or contractor. 
This chapter does 
not apply to a contractor's right to seek contribution from or 
indemnity or recovery against a subcontractor, supplier or design 
professional for 
any claim made 
against the contractor by 
a 
claimant. 
§8559. 
Effective date 
This chapter applies to an action commenced after January 1, 
2006, regardless of the dat~J sale or substantial completion of 
the residence at issue in the action. 
SUMMARY 
This bill requires a homeowner who intends to file an action 
against a manufacturer or dealer of manufactured housing alleging 
a construction defect to first provide written notice of each 
alleged construction defect to the manufacturer or dealer of 
manufactured housing 90 days before a suit is filed and provide 
the evidence supporting the claim. A claimant must provide the 
manufacturer or dealer of manufactured housing reasonable access 
to 
the 
residence to determine the nature 
and extent of the 
defect. The manufacturer or dealer of manufactured housing 
must 
respond to the claimant within 30 days of the notice and may 
offer to inspect the property, remedy the defect, compromise by 
payment or reject in whole or in part the claim. A court must 
dismiss an action commenced against a 
manufacturer or dealer of 
manufactured housing by a claimant who has failed to comply with 
the notice and opportunity to repair requirements. This bill also 
requires 
a 
manufacturer 
or 
dealer 
of 
manufactured 
housing 
contractor to provide notice of the provisions of this bill to a 
homeowner upon entering a home construction contract.