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Natasha A. Khachatourians
By Natasha A. Khachatourians
In late October 2022, in a narrow 5-4 decision, Washington’s Supreme Court struck another blow to general contractors—this time hitting them with a ruling holding that a one-year limitation period to file a lawsuit under a residential construction contract is “substantively unconscionable” and “void and unenforceable.”
In Tadych v. Noble Ridge Construction, Inc., et al., 200 Wn.2d 635, 519 P.3d 199 (2022), the plaintiffs entered into a written agreement with the defendant-general contractor for the construction of their personal residence. The construction contract, like most agreements in this area, contained a warranty provision. The warranty provision contained the following statement, in pertinent part:
Any claim or cause of action arising under this Agreement, including under this warranty, must be filed in a court of competent jurisdiction within one year (or any longer period stated in any written warranty provided by the Contractor) from the date of Owner’s first occupancy of the Project or the date of completion as defined above, whichever comes first. Any claim or cause of action not so filed within this period is conclusively considered waived. Id. at 638-39. The plaintiffs reviewed the contract for a month before executing it without any evidence of objection to the warranty provision or the limitation period contained therein.
Plaintiffs moved into the residence by April 2014. Within 10 months, they experienced significant issues with their residence—so much so that they hired a construction
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Construction Law
Washington Contractors Be Wary: One-Year Warranty
Limitations Are Unconscionable
FDCC ANNUAL INSIGHTS 2023