Delaware HB 89

This Act directs the Division of Consumer Protection to establish a Home Improvement Dispute Resolution process through which a person who purchases home improvement services or materials from a contractor can initiate a dispute resolution process with the assistance of the Division. To be eligible for the dispute resolution process, the buyer must first send the contractor a written request to resolve the dispute and allow the contractor 20 days to respond. If the dispute is not resolved or the contractor fails to respond, the buyer may submit an application to the Division for assistance. Upon receiving notice from the Division that the buyer has initiated the dispute resolution process, a contractor must participate in good faith in the process. If the contractor fails to respond to the notice or fails to participate in good faith, it is deemed a violation of the Consumer Fraud Act and a notice will also be sent to the Department of Labor. A contractor who fails to participate in good faith in the dispute resolution process may also have their certificate of registration denied, suspended, or revoked. This Act also establishes that a buyer who initiates a civil action for damages incurred as a result of a violation of the Consumer Fraud Act related to a home improvement contract may be awarded actual damages, court costs, and reasonable attorneys fees. A buyer who initiates a civil action may also obtain up to treble damages if the buyer completed the steps to be eligible for the dispute resolution process, if the buyer made an offer of settlement at least 10 days prior to filing the civil suit and the contractor rejected the offer, if the offer was for less than the buyer is ultimately awarded by the court, and if the court holds that the contractor’s violation was wilful. This Act takes effect immediately and is to be implemented 6 months from the date of enactment.