3101, et seq. If there are subcontractors that are going to be working on the project, and are known at the time the contract is executed, their names, addresses, and phone numbers should be included as well. The UTPCPL is also based on the Lanham Trademark Act, 15 U.S.C. [14] 73 P.S. [3] Id. *384 Joseph C. Cascarelli, Philadelphia, for appellants. Discuss and negotiate between the consumer and contractor for incremental payments as work progresses, with a final payment upon completion. Registration Requirement Appellants argue the sale of real estate falls within the purpose of the UTPCPL. 42 P.C.S. However, contractors must include their registration number in their advertisements, contracts, estimates and proposals. 334, 520 A.2d 485 (1987), we considered the appealability of an order denying amendment of a complaint: Id., 360 Pa.Superior Ct. at 344, 520 A.2d at 490. Is there an exemption for work performed by or on behalf of a charity or a non-profit corporation? You do not need to include extra zeroes which come before your number but you must have these letters and your actual registration number. Although the decision to grant or deny a petition to amend a pleading is a matter of judicial discretion, we have held that "[a]mendments should be allowed with great liberality at any stage of the case unless they violate the law or prejudice the rights of the opposing party. [21] Even if we were to conclude that all actions brought pursuant to the UTPCPL sounded in deceit or fraud, what with appellants' additional claims under UTPCPL the six-year "catchall" limitation of section 5527(6) would be applicable. Commonwealth v. Monumental Properties, Inc., 459 Pa. 450, 462, 329 A.2d 812, 817-18 (1974) (the UPTCLP "has regularly been interpreted. Co., 360 Pa.Super. Representing the product or service at a particular standard when it does not meet this standard. Attorney's use this law to demand justice against both real and perceived threats. How is emergency work handled under the Home Improvement Consumer Protection Act? The law also limits down payments or deposits for any home improvement project for which the total price is more than $5,000. 201-3 ("Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . 170, 427 A.2d 730 (1981); Safeguard Inv. In Barr v. General Accident Group Ins. Statute of Limitations on Contract/Sales in Pennsylvania Pennsylvania law is replete with various statutes of limitation, governing the length of time which aggrieved parties have in order to file their claims in the appropriate court. See Pa.Senate Leg.J., June 28, 1976, at 1798 (Sen. Zemprelli) ("deals with a matter which . How should I list the Bureau of Consumer Protection's phone number in my contracts? For instance, it is not uncommon for contractors to include clauses that mandate arbitration in the event of a dispute. 15, 752; Or.Rev.Stat. Under Section 517.6 of the Act, this registration number must be included in all of the contractors advertisements, contracts, estimates and proposals created by the contractor after July 1, 2009. This new statute, however, contained no express limitation on actions for fraud and deceit. Hire the top business lawyers and save up to 60% on legal fees. It exists to prevent businesses from participating in deceptive or unfair practices or inequitable competition. Landscapers whose work is limited to services performed under Pennsylvanias Plant Pest Act do not need to register. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. Those filing under the UTPCPL can be awarded the amount of monetary damages presented or $100, whichever is greater. Where should I put my registration number in my advertisements and contracts? Yes, subcontractors who perform home improvements must register even if they do not enter agreements directly with consumers. In fact, this state law also applies to construction done on swimming pools, porches, driveways, garages, patios, fences, and sheds. Is new home building included in the law? If a home improvement contract contains any of the following clauses, the home improvement contract shall be voidable by the owner: (1) A hold harmless clause. *398 Confronted by the same issue in Murry v. Western American Mortgage Co., 124 Ariz. 387, 604 P.2d 651 (1979), the Arizona Supreme Court applied that state's one-year "catchall" limitations period to the Arizona Consumer Fraud Act. Informs the consumer in writing that any cost beyond the contract price (initial cost estimate plus 10%) must be agreed to by the homeowner in a written change order. four-year limitation). The broad construction mandated by the core concerns of the legislature in enacting the UPTCPL allowed our Supreme Court in Commonwealth v. Monumental Properties, supra, to hold that the leasing of residential real *390 estate was within the purview of the statute's intendment. [6]*389 Contrawise, appellee asserts that the sale of the real estate is not within the purview of the UTPCPL. The district court held that the plaintiff's common law libel claim was time-barred by 42 P.C.S. . (quoting 51 Am.Jur.2d Limitations of Actions 63 (1970)). Delaware. See Home Life Ins. While it is rare that the court awards an amount over the actual damages sustained, the threat of this occurring will often help to resolve the case outside of court, as businesses don't want to risk this ruling. . [u]pon a statute, for a penalty or forfeiture" was applicable. The Act applies to any person who owns and operates a home improvement business or who undertakes offers or agrees to perform any home improvement, including a subcontractor who has contracted with a home improvement retailer to provide home improvement services to the retailers customers. Section 201-7 of Pennsylvanias Unfair Trade Practices and Consumer Protection Law contains a sample notice of cancellation you may wish to use in your contracts. Does the law apply to out-of-state contractors? But the Act does not apply to a person for whom the total cash value of all of that persons home improvements is less than $5,000.00 during the previous taxable year. Additionally, the Court was mindful of the consequences of a contrary interpretation as well as the intent of the legislature: Id., 459 Pa. at 474, 478, 329 A.2d at 824, 826. statute and other law Strong The statute does not contain any restrictions on class actions. Any contractor who offers or performs home improvements in Pennsylvania must comply with the law. v. Lazin, 57 Pa.Commw. 3 years for contracts2 years for torts. It is a business responsibility to provide the written notice of cancellation, exactly as written in the law, otherwise if the consumer has not been notified of his rights, the entire contract may be voidable even after the three days has passed. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Sign up for our free summaries and get the latest delivered directly to you. and the Lantram Trademark Act were models for Pennsylvania's (UTPCPL)"). The law only applies private residences which is defined as: single family dwellings; multifamily dwellings consisting of not more than two units; and single units located within any multifamily dwelling, including condominiums and cooperative units. We now turn our attention to the important question of the appropriate statute of limitations for private enforcement actions brought under the UTPCPL. [23] "When the words of a statute are clear and free from all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit." For cases applying these statutes to real estate transactions, see, e.g., Klotz v. Underwood, 563 F. Supp. The Act took effect on July 1, 2009. In short, no home improvement contractor will be permitted to use any form of advertising or promotional material that does not allow the consumer to trace that contractor through a registration number to the Pennsylvania Bureau of Consumer Protection. Appellants are individuals and owners of residential property located at 5714 Marshall Street in Philadelphia. In 1982, the legislature amended the Judicial Code to provide a two-year limitation period specifically for fraud and deceit actions. 44-1521; Colo.Rev.Stat.Ann. If the contract includes a time and materials provision: The law does not grandfather existing businesses. 327, 546 P.2d 470 (1976). v. As we previously noted, the Unfair Trade Practices and Consumer Protection Law embraces actionable conduct which sounds in assumpsit as well as trespass and which parallel actions upon contracts as well as those arising in tort. Other prohibited acts include, but are not limited to, the abandonment or failure to perform, without justification, any home improvement contract engaged in or undertaken by a contractor, the deviation from plans or specifications without a written change order signed by the parties, advertising to perform a home improvement without intent to perform or charge for the home improvement as advertised and, for home improvements for which the total price is more than $1,000.00, receiving a deposit in excess of one-third of the home improvement contract price or one-third of the home improvement contract price plus the cost of any special order materials that have been ordered. Home improvement includes all of the following activities when they are done in connection with land or a portion of the land adjacent to a private residence or a building or a portion of the building which is used or designed to be used as a private residence for which the total cash price of all work agreed upon between the contractor and owner is more than $500: No, the construction of a new home is not considered a home improvement under the law. with 15 U.S.C. The terms that are required to be in every home improvement contract, and provisions that cannot be included, are set forth in Section 517.7 of the law which you can review here. 1981); Rosenthal v. Perkins, 42 N.C.App. A separate line item recording any down payments. Finding next that the purpose of the Unfair Trade Practices Statute were both remedial and penal, the Court emphasized: Id. 121 1/2, 261; Iowa Code Ann. The trial court denied the motion on the grounds that the claim was time-barred by the one-year "catchall" limitation. Before that, there was no requirement that an agreement for home improvement be in writing. Do building superintendents or the maintenance staff for apartment buildings, condominiums, or community associations need to register? Furthermore, these written agreements must contain the entirety of the agreement reached by the homeowner and the contractor in question. [19] Id. See American Oil Co. v. Norkus, 358 Pa. 407, 57 A.2d 868 (1948) (common law tradename infringement). . The language of section 5527(6) of the Judicial Code, however, is clear and unambiguous[23] as to what period of limitation shall apply in such instances: "Any civil action or proceeding which is neither subject to another limitation specified in this subchapter nor excluded from the application of a period of limitation [must be commenced within six years]." The Act also prohibits a home improvement contractor from changing the contractors name, address, liability insurance information or any other identifying information in a fraudulent or deceptive manner likely to cause confusion or misunderstanding without advising the owner in writing within ten days following any such change. The Pennsylvania's Unfair Trade Practices and Consumer Protection Law (UTPCPL) 73 P.S. All rights reserved. The law says that registration numbers must be included in all advertisements, contracts, estimates and proposals - how do I display my number? The Home Improvement Consumer Protection Act only applies to work done in connection with a "private residence," which term includes a single family dwelling, a multifamily dwelling consisting of not more than two units, or any single unit located within any multifamily dwelling, including condominiums and co-op units. 5524(7). (xiv). 2011 -2019.2 A powerful weapon; Used to protect consumers from "advertising, offering for sale, sale or distribution of any services and any property, tangible or intangible, real, 45.50.481(a)(1) says that the statute does not apply to "an act or transaction regulated under laws administered by the state, by a regulatory board or commission except as Stat. C. Herbert O'HARA, Joseph F.X. This new statute, however, contained no express limitation on actions for fraud and deceit. The term home improvement is broadly defined to include most repair, replacement, remodeling, demolition, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation and sandblasting work done in connection with land or a portion of land adjacent to a private residence, so long as the total cash price of all work agreed upon between the contractor and owner is more than $500.00. (xi) (fictitious price cuts). The Act also prohibits a home improvement contract from containing various terms, including the waiver of building code requirements, confession of judgment clauses, the waiver of a right to a jury trial, wage assignment clauses, provisions that the contractor be awarded attorneys fees and costs, and, perhaps most importantly, the waiver of any rights provided under the Act. [1] In its view, appellants' amended cause of action was barred by Pennsylvania's two-year limitations period for fraud,[2] rather than the six-year "catchall" limitation period,[3] since it was the closest analogy for appellants' statutory claims. Fox Rothschild LLP Attorneys at Law. See also Gum, Inc. v. Gumakers of America, 1 F.R.D. [16] Id. [17] Consequently, the use of the standard employed by the trial court in the case at bar to select a limitations period threatens a multiplicity of potentially applicable statutes of repose for UTPCPL actions. 1984), it was held that "[i]f a leasehold of real estate is covered by the Consumer Protection Law, there is no reason why guarantees given in connection with the sale of real estate should not also be covered." In 1982, the legislature amended the Judicial Code to provide a two-year limitation period specifically for fraud and deceit actions. 553, 561, 382 A.2d 762, 765 (1978) ("the Federal Trade Commission Act . A description of the work to be performed; The approximate start and completion dates for the project; Any specifications that cannot be changed in the absence of a written change order that is signed by both parties; The total sales price due upon completion of the job; and. HICPA was enacted to regulate home improvement contracts and to prohibit certain acts in the home improvement industry. For a full discussion and comparison of state unfair competition statutes, see generally, Sibert, Enforcement of State Deceptive Trade Practice Statutes, 42 Tenn.L.Rev. 387, as amended 1976, Nov. 24, P.L. 449, 257 S.E.2d 63 (1979); Sherrod v. Holzshuh, 274 Or. Yes. [2] Section 5524(7) of the Judicial Code, as amended 1982, sec. We find further support for our determination in the decisions of the courts of other states which have concluded likewise. While it is likely take years for the courts to flesh out the details of the Act and interpret its many provisions, there can be no doubt that the Act will have broad consequences for both home improvement contractors and home owners. Anyone who has paid attention to the local newspapers over the past few years will recall the scandals and prosecutions of home improvement contractors gone bad of contracts not honored, and of unearned deposits not refunded. UpCounsel accepts only the top 5 percent of lawyers to its site. He articulated all of the details of my case very clearly and in a timely manner. 45(a)(1) ("Unfair methods of competition in commerce, and unfair or deceptive acts or practices in or affecting commerce, are declared unlawful."). However, the term does not include the construction of a new home or the sale of goods and materials by a seller who neither arranges nor performs installation work. See Ariz.Rev.Stat.Ann. (D) A statement that the cost of the services to be performed under the time and materials provision shall not be increased over the initial cost estimate plus a 10% increase without a written change order signed by the owner and contractor. A home improvement retailer having a net worth of more than $50,000,000 or an employee of that retailer that does not perform home improvements. Thank you Lou! as being based on the Federal Trade Commission Act"); Commonwealth v. Flick, 33 Pa.Commw. Similarly, contractors cannot force a homeowner to waive the right to a jury trial, to give up the right to assert a claim arising out of the contract, or to agree that the contractor will be awarded attorneys fees and costs in the event of a dispute. 618 (E.D.Pa. 404, 408 (E.D.Pa. The amendment of appellants' complaint to include a claim for violation of the Unfair Trade Practices and Consumer Protection Law does plead a new cause of action, but also brings forth a consideration of another statute of limitations in addition to the two-year statute of limitation for common law fraud. What is the toll-free telephone number for the Bureau of Consumer Protection that needs to be included in home improvement contracts? . 45(a)(1). 417, 404 A.2d 720 (1979) (Usury Statute). 259 S.E.2d at 6. 445.902; Miss.Code Ann. This law firm website and legal marketing are managed by MileMark Media. Such requirements include contractors' registering with Pennsylvania's Office of Attorney General, obtaining a registration number, and paying the necessary registration fees. Please contact dedicated home contractor fraud attorney Louis S. Schwartz at CONSUMERLAWPA.com today to learn more about your legal options. I was pleased with the results and would highly recommend his service to anyone seeking consumer help. For example: one of the parties to a simple loan transaction is sixteen years of age at the time that she loans fifty dollars to her friend who is nineteen. 2313 (express warranty), 2314 (implied warranty of merchantability), 2315 (implied warranty of fitness for a particular purpose). 75-24-3; Mo.Ann.Stat. Connecticut. Employees of apartment buildings, condominiums, and community associations who are performing work on the property within the scope of their employment with these businesses do not need to register. After registering, a home improvement contractor registration certificate will be issued to the contractor. Further, the Act requires that any contract include a notice of the owners right to rescind the contract without penalty within three business days of the date of signing, regardless of where the contract was signed. You already receive all suggested Justia Opinion Summary Newsletters. Finally, its important to note that under state law, homeowners have the legal right to rescind a home improvement contract without incurring any penalties, as long as they do so within three days of signing. You're all set! 459 Pa. at 467-70, 329 A.2d at 820-23 (citations omitted). 1051 et seq. Share it with your network! 1166, No. Home improvement contractor registrations are valid for two years, and must be renewed biennially. [22] We are unable, therefore, to characterize all the multifarious claims that may be brought under the UTPCPL as "fraud" or "deceit." :The Act applies to condominiums created after the Act's effective date (120 days from July 2, 1980). The operative provision of the Unfair Trade Practices and Consumer Protection Law provides: "Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . On August 25, 1982, appellants filed a complaint alleging, inter alia, causes of action for breach of the implied warranty of merchantability, breach of contract, and fraudulent misrepresentation. Nor does the term include the sale of appliances, such as stoves, refrigerators, freezers and room air conditioners, which are designed for and are easily removable from the premises without material alteration. The Act at Section 517.8 also makes home improvement fraud a criminal offense, punishable as either a felony of the third degree or a misdemeanor of the first degree, depending upon the nature of the violation and the amount involved. However if an employees perform home improvements on private residential properties on their own, outside the scope of their employment, and that works totals $5,000 or more in a calendar year, then the employee must register as a contractor. A non-refundable fee of $50.00, payable to Commonwealth of Pennsylvania must accompany each application. 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