1.1 	A bill for an act
1.2 	relating to civil actions; statutory housing
1.3 	warranties; regulating recovery for breaches; amending
1.4 	Minnesota Statutes 2004, section 327A.05.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 327A.05, is
1.7 	amended to read:
1.8 	327A.05 REMEDIES.
1.9 		Subdivision 1.New home warranties. Upon breach of any
1.10 	warranty imposed by section 327A.02, subdivision 1, the vendee
1.11 	shall have a cause of action against the vendor for damages
1.12 	arising out of the breach, or for specific performance. If the
1.13 	vendee is the prevailing party, the vendee must also be awarded
1.14 	the vendee's costs, disbursements, and reasonable attorney fees.
1.15 	Damages shall be limited to:
1.16 	(a) the amount necessary to remedy the defect or breach; or
1.17 	(b) the difference between the value of the dwelling
1.18 	without the defect and the value of the dwelling with the defect.
1.19 		Subd. 2.Home improvement warranty. Upon breach of any
1.20 	warranty imposed by section 327A.02, subdivision 3, the owner
1.21 	shall have a cause of action against the home improvement
1.22 	contractor for damages arising out of the breach, or for
1.23 	specific performance. If the owner is the prevailing party, the
1.24 	owner must also be awarded the owner's costs, disbursements, and
1.25 	reasonable attorney fees.Damages shall be limited to the
2.1 	amount necessary to remedy the defect or breach.

2.2 	Sec. 2. EFFECTIVE DATE; APPLICATION.
 2.3 	Section 1 is effective the day following final enactment
2.4 	and applies to causes of action pending on, or commenced on or
2.5 	after, that date.