Tracking surety issues at the state level allows NASBP to truly appreciate the differences in each state’s legislative and regulatory processes. While many state’s face similar issues, there are some issues NASBP encounters that are unique to only one state. The issue this article is referring to is that of the application of a legal doctrine known as nullum tempus. This is an ancient doctrine which literally translates to “no time runs against the king.” The state of Connecticut has used this doctrine to assert its right to not adhere to any statutes of limitations in bringing claims against a contractor. This issue has been very disconcerting to contractors throughout the state as well as sureties.

NASBP has been working with the Nullum Tempus Coalition which includes the Associated Builders and Contractors of Connecticut and the Connecticut Construction Industries Association to persuade the Connecticut General Assembly to clarify how and when the State of Connecticut may bring claims against contractors involved in public works projects. The need for such legislation arises from a 2012 court decision that no statute of limitations applies to the State of Connecticut, such that the State may file claims at any time, no matter the remoteness of the claims. The court further ruled that this principle may extend to Connecticut’s municipalities.

To that end, the Judiciary Committee held a public hearing on March 17 on HB 5570, “An Act Concerning The Applicability Of Statutes Of Limitations To Actions Brought By The State Or A Political Subdivision Of The State.” Several speakers testified about the enormous problems that may ensue if professional firms associated with public works projects face literally no end to when the State may take action against them. NASBP submitted written testimony in support of the bill.

On April 2, following the efforts of the Coalition, the Judiciary Committee reported out a bill that would mandate statutes of limitations for state work. Unfortunately the bill was finalized erroneously, providing that only design work would be covered by the new statute.

In response, the Coalition has re-grouped and drafted a concise bill that addresses this issue and includes language that models the original proposed language as much as possible to include all construction, trade and design industries. The Coalition’s draft also adopts the 10-year limitation period that was reported out of the Judiciary Committee.

The original court case decision offers insight into the issue. Click here to read the decision. NASBP will continue to work with the Coalition and provide the membership with updates on NASBP’s progress.