AN ACT to amend Tennessee Code Annotated, Title 28, relative to the dispute resolution process for matters involving real property.
SB0866 amends Tennessee’s statute of repose for certain claims involving real property improvements. The bill provides that, except for actions brought under a separate statutory provision, lawsuits, arbitrations, or other binding dispute resolution proceedings seeking damages for deficiencies in the design, planning, supervision, observation of construction, or construction of an improvement to real property must be brought within four years after substantial completion of the improvement. The covered claims include property damage, personal injury, and wrongful death arising out of those construction-related deficiencies.
In practical terms, the bill sets a clear outer time limit for bringing claims against persons or entities involved in the construction process, such as designers, planners, supervisors, inspectors, and builders. It amends Tennessee Code Annotated Title 28 and takes effect July 1, 2026. By replacing the prior section, it updates the state’s dispute-resolution and litigation timeline for real-property construction defect matters.
The bill changes Tennessee’s statute of repose for construction-defect and related real-property claims by establishing a four-year deadline measured from substantial completion of the improvement. This affects owners, contractors, architects, engineers, construction managers, and other parties performing or furnishing design and construction services, as well as claimants seeking damages for property loss, personal injury, or wrongful death tied to those services. It also applies to arbitration and other binding dispute resolution proceedings, not just court actions, thereby narrowing the time window for all covered claims.
The available voting history suggests broad support and little controversy. The Senate Judiciary Committee recommended passage unanimously, and the bill passed the Senate floor 31-0 on third consideration before later receiving final passage with only four nays. No committee transcript is available, but the vote pattern indicates the measure was generally viewed favorably as a technical or procedural update to construction-related dispute timing rules.
The main policy issue is the balance between certainty for the construction industry and the ability of property owners or injured parties to discover and pursue latent defects. Supporters likely favor a firm repose period to reduce long-tail liability and provide predictability for builders and design professionals. Potential opponents would be those concerned that a four-year limit may cut off claims before defects or injuries are discovered, especially in complex real-property projects where problems can emerge later. The bill’s broad application to arbitration and other binding dispute resolution processes may also matter to parties negotiating contract remedies.