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.

SB 866 modifies Tennessee's legal time limits for construction-related lawsuits. It removes a four-year deadline (statute of repose) that previously barred certain counterclaims or third-party claims about defects in real property design, planning, supervision, or construction. This change directly affects property owners, contractors, and developers involved in disputes over construction quality. The bill allows these specific claims to be filed beyond the standard four-year period after a project's substantial completion. The amendment takes effect July 1, 2025.