70-19-426. Residential construction disputes — definitions. As used in 70-19-427, 70-19-428, and this section, the following definitions apply:

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Terms Used In Montana Code 70-19-426

  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.

(1)(a) “Action” means any civil lawsuit or action in contract or tort for damage or indemnity brought against a construction professional to assert a claim, whether by complaint, counterclaim, or cross-claim, for damage or the loss of use of real or personal property caused by a defect in the construction or remodeling of a residence.

(b)The term does not include a civil action in tort alleging personal injury or wrongful death to a person or persons resulting from a construction defect.

(2)”Association” means a unit owners’ organization or a nonprofit corporation created to own and operate portions of a planned community that has the power to require unit owners to pay the costs and expenses incurred in the performance of the association’s obligations.

(3)”Claimant” means a home owner or association that asserts a claim against a construction professional concerning a defect in the construction or remodeling of a residence.

(4)”Construction defect” means a deficiency in or arising out of the supervision, construction, or remodeling of a residence that results from any of the following:

(a)defective materials, products, or components used in the construction or remodeling of a residence;

(b)violation of the applicable building, plumbing, or electrical codes in effect at the time of the construction or remodeling of a residence;

(c)failure to construct or remodel a residence in accordance with contract specifications or accepted trade standards.

(5)”Construction professional” means a builder, builder vendor, contractor, or subcontractor performing or furnishing the supervision of the construction or remodeling of any improvement to real property, whether operating as a sole proprietor, partnership, corporation, or other business entity.

(6)(a) “Home owner” means:

(i)any person, company, firm, partnership, corporation, or association who contracts with a construction professional for the remodeling, construction, or construction and sale of a residence; or

(ii)an association as defined in this section.

(b)The term home owner includes but is not limited to a subsequent purchaser of a residence from any home owner.

(7)”Residence” means a single-family house or a unit in a multiunit residential structure in which title to each individual unit is transferred to the owner under a condominium or cooperative system.

(8)”Serve” or “service” means personal service or delivery by certified mail to the last-known address of the addressee.