KRS 411.258: Written notice of claim to be served on construction professional in

construction defect action -- Offer to remedy or settle -- Acceptance or

rejection of offer -- Commencement of action -- Notice of claim tolls statute of

limitations.

(1) In every construction defect action brought against a construction professional, the

claimant shall serve written notice of claim on the construction professional. The

notice of claim shall state that the claimant asserts a construction defect claim

against the const ruction professional and shall describe the claim in reasonable

detail sufficient to determine the general nature of the defect.

(2) Within twenty-one (21) days after service of the notice of claim, the construction

professional shall serve a written respo nse on the claimant by registered mail or

personal service. The written response shall:

(a) Propose to inspect the residence that is the subject of the claim and to

complete the inspection within a specified time frame. The proposal shall

include the state ment that the construction professional shall, based on the

inspection, offer to remedy the defect, compromise by payment, or dispute the

claim;

(b) Offer to compromise and settle the claim by monetary payment without

inspection. A construction professiona l's offer under this paragraph to

compromise and settle a homeowner's claim may include but is not limited to

an express offer to purchase the claimant's residence that is the subject of the

claim, and to pay the claimant's reasonable relocation costs; or

(c) State that the construction professional disputes the claim and will neither

remedy the construction defect nor compromise and settle the claim.

(3) (a) If the construction professional disputes the claim or does not respond to the

claimant's notice of claim within the time stated in subsection (2) of this

section, then the claimant may bring an action against the construction

professional for the claim described in the notice of claim without further

notice.

(b) If the claimant rejects the inspection p roposal or the settlement offer made by

the construction professional pursuant to subsection (2) of this section, then

the claimant shall serve written notice of the claimant's rejection on the

construction professional. After service of the rejection, the claimant may

bring an action against the construction professional for the construction

defect claim described in the notice of claim. If the construction professional

has not received from the claimant, within thirty (30) days after the claimant's

receipt of the construction professional's response, either an acceptance or a

rejection of the inspection proposal or settlement offer, then at any time

thereafter the construction professional may terminate the proposal or offer by

serving written notice to th e claimant, and the claimant may thereafter bring

an action against the construction professional for the construction defect

claim described in the notice of claim.

(4) (a) If the claimant elects to allow the construction professional to inspect in

accordance with the construction professional's proposal pursuant to

subsection (2)(a) of this section, then the claimant shall provide the

construction professional and its contractors or other agents reasonable access

to the claimant's residence during normal working hours to inspect the

premises and the claimed defect.

(b) Within fourteen (14) days following completion of the inspection, the

construction professional shall serve on the claimant:

1. A written offer to remedy the construction defect at no cost t o the

claimant, including a report of the scope of the inspection, the findings

and results of the inspection, a description of the additional construction

necessary to remedy the defect described in the claim, and a timetable

for the completion of this construction; or

2. A written offer to compromise and settle the claim by monetary payment

pursuant to subsection (2)(b) of this section; or

3. A written statement that the construction professional will not proceed

further to remedy the defect.

The claimant shall have the right to accept or reject the proposed construction defect

correction, or the monetary offer to settle the claim.

(c) If the construction professional does not proceed further to remedy the

construction defect within the agreed timetable, or if the construction

professional fails to comply with the provisions of paragraph (b) of this

subsection, then the claimant may bring an action against the construction

professional for the claim described in the notice of claim without furth er

notice.

(d) If the claimant rejects the offer made by the construction professional pursuant

to paragraph (b)1. or 2. of this subsection to either remedy the construction

defect or to compromise and settle the claim by monetary payment, then the

claimant shall serve written notice of the claimant's rejection on the

construction professional. After service of the rejection notice, the claimant

may bring an action against the construction professional for the construction

defect claim described in the noti ce of claim. If the construction professional

has not received from the claimant, within thirty (30) days after the claimant's

receipt of the construction professional's response, either an acceptance or a

rejection of the offer made pursuant to paragraph (b)1. or 2. of this subsection,

then at any time thereafter the construction professional may terminate the

offer by serving written notice to the claimant.

(5) (a) Any claimant accepting the offer of a construction professional to remedy the

construction defect pursuant to subsection (4)(b)1. of this section shall do so

by serving the construction professional with a written notice of acceptance

within a reasonable time period after receipt of the offer, and no later than

thirty (30) days after receipt of the offer. The claimant shall provide the

construction professional and its contractors or other agents reasonable access

to the claimant's residence during normal working hours to perform and

complete the construction by the timetable stated in the offer.

(b) The claimant and construction professional may, by written mutual agreement,

alter the extent of construction or the timetable for completion of construction

stated in the offer, including but not limited to repair of additional defects.

(6) If a clai mant files a complaint, counterclaim, or cross -claim prior to meeting the

requirements of this section, then the court may issue an order holding the action in

abeyance until the parties comply with this section.

(7) Nothing in this section may be construe d to prevent a claimant from commencing

an action on the construction defect claim described in the notice of claim if the

construction professional fails to perform the construction agreed upon, fails to

remedy the defect, or fails to perform by the timet able agreed upon pursuant to

subsection (2)(a) or (5) of this section.

(8) The service of an amended notice of claim shall relate back to the original notice of

claim for purposes of tolling statutes of limitations and repose.