§ 7 — Claims against fund; award limitations

Massachusetts § 7

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XX: PUBLIC SAFETY AND GOOD ORDER
• Ch. 142A: REGULATION OF HOME IMPROVEMENT CONTRACTORS

Text

[ First paragraph effective until November 20, 2024. For text effective November 20, 2024, see below.]Section 7. An owner may make a claim to the fund only if he has complied with the provisions of section three of this chapter, and has filed his claim with the fund within six months after the owner has obtained a judgment or arbitration award, and has exhausted all such customary and reasonable efforts to collect the judgment or award.[ First paragraph as amended by 2024, 238, Sec. 254 effective November 20, 2024. For text effective until November 20, 2024, see above.]An owner may make a claim to the fund only if the owner has complied with section 3, has obtained a judgment or arbitration award and has filed the claim to the fund not more than 7 years from the date of the contract, the contractor has failed to pay the judgment or award and the director has determined that reasonable efforts to collect have been made.A claim under this section shall not be construed to limit the availability of other legal or equitable remedies unless the claim made is for the full amount of the value of the work claimed as damages, in which case the contractor or subcontractor, upon repayment to the fund, may use repayment as a defense via settlement.[ Third paragraph effective until November 20, 2024. For text effective November 20, 2024, see below.]The fund administrator may not award: (1) more than ten thousand dollars or any amount necessary to compensate the owner for his actual loss, whichever is less to any one claimant or; (2) more than seventy-five thousand dollars to claimants on account of the conduct of any one registered contractor or subcontractor within a twelve month period, unless after the fund administrator has paid out said seventy-five thousand dollars the registrant has repaid the fund the full amount; provided, however, that it is within the discretion of the fund administrator to waive the limit with cause; or (3) any amount for consequential damages, except as may be allowed under section four, or for personal injury, punitive damages, attorney's fees, court costs or interest.[ Third paragraph as amended by 2024, 238, Secs. 255 and 256 effective November 20, 2024. For text effective until November 20, 2024, see above.]The fund administrator may not award: (1) more than $25,000 or any amount necessary to compensate the owner for his actual loss, whichever is less to any one claimant or; (2) more than $150,000 to claimants on account of the conduct of any one registered contractor or subcontractor within a twelve month period, unless after the fund administrator has paid out said $150,000 the registrant has repaid the fund the full amount; provided, however, that it is within the discretion of the fund administrator to waive the limit with cause; or (3) any amount for consequential damages, except as may be allowed under section four, or for personal injury, punitive damages, attorney's fees, court costs or interest.If at any time the money deposited in the fund is insufficient to satisfy any approved claim or portion thereof, the fund administrator, when sufficient money has been deposited in the fund, shall satisfy the unpaid claims or portions thereof in the order that the claims were originally filed with the fund administrator.The pendency of a claim against the fund shall not limit the director from taking disciplinary action against any registered contractor or subcontractor pursuant to this chapter.