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HB 734

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) Introduced by Gary Hicks

HB 734 allows construction defendants to file counterclaims after the four-year statute of repose expires, potentially extending liability exposure for all parties in construction disputes.

Comp. SB subst.
#statutesoflimitationsandrepose
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Bill Summary · HB 734

Legislative bill overview

HB 734 modifies Tennessee's statute of repose for construction-related claims by allowing defendants to file counterclaims, third-party complaints, and cross-claims against other parties even after the standard four-year deadline has passed. Currently, Tennessee's statute of repose creates an absolute bar on construction defect claims after four years, but this bill carves out an exception for defendants raising related claims in response to litigation initiated by others.

Why is this important

This bill affects liability exposure in construction disputes by potentially extending the window during which construction professionals, contractors, and property owners can assert claims against other parties. It could significantly impact settlement negotiations, insurance requirements, and litigation strategy in the construction industry, as parties could theoretically defend themselves or recover damages from co-defendants long after the original statute of repose deadline.

Potential points of contention

  • Fairness to original claimants: Plaintiffs who file within the four-year window could face unexpected counterclaims from defendants years later, fundamentally altering the finality that statutes of repose are designed to provide
  • Insurance and risk allocation: Construction professionals may struggle to price insurance or manage risk if they can face liability exposure triggered only when someone else sues them first
  • Scope ambiguity: The bill doesn't clearly define what constitutes a claim "related to" construction, potentially creating litigation over whether tangential claims qualify for the exception

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

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