SCS/SB 727 - This act modifies provisions relating to civil actions for unlawful merchandising practices. UNLAWFUL MERCHANDISING PRACTICES FOR NEW RESIDENCES (Section 407.020)
This act provides that an unlawful merchandising practice shall not include any advertisement, merchandise, or transaction in which the merchandise consists of a new residence in a transaction in which the buyer is offered an express warranty in the sale contract by the builder or by a third party warranty paid for by the builder and the sale contract includes a disclaimer. The act defines "residence" as a single-family house, duplex, triplex, quadruplex, or unit in a multiunit residential structure in which the title to each individual unit is transferred to an owner under a condominium or cooperative system and includes common areas and common elements.
This act is substantially similar to a provision in SB 762 (2020), a provision in SB 793 (2020), a provision in SCS/SB 62 (2019), a provision in SCS/SB 276 (2019), SB 374 (2019), a provision in SS#2/SCS/SB 832 (2018), a provision in SCS/SB 1102 (2018), and a provision in HB 2089 (2018), and is similar to a provision in the truly agreed to and finally passed SS#2/SCS/SB 591 (2020), HB 1872 (2020), a provision in SCS/SB 150 (2019), and HB 790 (2019).
PROCEDURE FOR UNLAWFUL MERCHANDISING PRACTICES CLAIMS (Section 407.025)
A person seeking to recover damages for unlawful merchandising practices shall establish that the person acted as a reasonable consumer, that the alleged unlawful act caused the person to enter into the transaction that resulted in damage, and the individual damages with sufficiently definitive and objective evidence to allow the loss to be calculated with a reasonable degree of certainty. A court may dismiss a claim for failure to show a likelihood that the alleged unlawful act would mislead a reasonable consumer.
In addition to current damages available, a court may provide equitable relief as it deems necessary to protect the party from the unlawful acts. No action may be brought under this act to recover damages for personal injury or death. Furthermore, this act provides that any award of attorney's fees shall bear a reasonable relationship to the amount of the judgment. However, when the judgment is a rescission of the sale, the attorney's fees shall be based on the amount of time reasonably expended.
These provisions are similar to a provision in the truly agreed to and finally passed SS#2/SCS/SB 591 (2020), HB 2243 (2020), a provision in SCS/SB 276 (2019), a provision in SCS/HB 186 (2019), and HB 714 (2019).
KATIE O'BRIEN