WeVote
Log In

Bill

Bill

SB 866

Statutes of Limitations and Repose - As enacted, specifies that a party filing a counterclaim, third-party complaint, or cross-claim related to the design, planning, supervision, or construction of an improvement of real property is not subject to the four-year statute of repose. - Amends TCA Title 28.

114th Regular Session (2025-2026)

SB 866 allows construction defendants to file counterclaims and third-party complaints outside the four-year statute of repose, extending liability exposure for design and construction parties.

Signed by Governor.
#statutesoflimitationsandrepose
0
WeVote Research Nonpartisan
Bill Summary · SB 866

Legislative bill overview

SB 866 modifies Tennessee's statute of repose for construction defects by exempting counterclaims, third-party complaints, and cross-claims from the standard four-year repose period. This means defendants in construction-related lawsuits can pursue claims against other parties (like contractors, designers, or suppliers) even after four years have passed, provided these claims arise from the same dispute.

Why is this important

Construction defect lawsuits often involve multiple parties with shared liability, and defendants frequently need to pursue recovery from other responsible parties. This change extends the window for these secondary claims, potentially improving defendants' ability to seek contribution or indemnification from other parties in complex construction disputes. However, it could also increase litigation duration and costs by allowing claims that might otherwise be time-barred.

Potential points of contention

  • Extended liability exposure: Original defendants and other construction industry parties face prolonged potential liability, as related claims can be filed years after the initial four-year period expires
  • Litigation complexity: The exemption could encourage more complex multi-party litigation and counterclaims, potentially increasing costs and court docket burden
  • Fairness concerns: Parties may face defending claims well beyond the repose period's original intent to provide finality and predictability in the construction industry

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.