Consumer office must help resolve Delaware home repair disputes

The Division of Consumer Protection must try to resolve eligible disputes between buyers and home improvement contractors. The process covers disputes involving home improvement contracts between buyers and contractors. Buyers must first send the contractor a signed request on an approved form, then apply with the contract and either the contractor’s response or a signed statement that no response arrived within 20 days. The law takes effect immediately, but the process is to be implemented six months after enactment.

Contractors must take part in the dispute process in good faith. Failing to respond to the Division or take part in good faith is an unlawful practice. These duties and consequences apply to contractors in the Home Improvement Dispute Resolution Process. The Division must notify the Department of Labor if a contractor fails to respond or participate in good faith, and send the contractor a copy. A violation is presumed willful, but a contractor may rebut that presumption by proving good cause. These provisions are to be implemented six months after enactment.

A buyer who meets the stated requirements may seek triple compensatory damages in a private lawsuit. This applies to a buyer bringing a private lawsuit over harm from a consumer protection violation related to a home improvement contract. The buyer must complete the dispute process steps and make a written settlement offer at least 10 business days before filing. The contractor must reject the offer or fail to respond within 10 business days. A court must award more than the offer, and a willful violation must be established. Triple damages may be added to other damages allowed by law. The written offer must come at least 10 business days before the lawsuit; a contractor’s silence for 10 business days counts as rejection.

Contractors must provide certain past violations and judgments in registration applications, and the Department may deny, suspend, or revoke a registration for consumer protection violations or failure to take part in good faith. The application disclosure rule covers a contractor or a person with a financial interest in the contractor’s business, when applicable. The listed information is not public under the state’s public records law, but must be provided to the Department of Justice upon request. These provisions are to be implemented six months after enactment.