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Timothy R. Hughes' Articles > Mid-Atlantic Construction
Timothy R. Hughes, Esq.
Hughes & Associates, P.L.L.C.
Understanding statues of limitations and re pose
will help you understand how long risks extend past project completion and
could prove a helpful defense if you are sued.
Statutes of limitations and statutes of repose provide an important
possible defense if you are sued. Limitations periods are designed to bar
untimely and stale claims. The theory is that as time passes, documents
are lost, witnesses leave the area, and recollections become hazy. All
these factors combine to interfere with the likelihood of a fair and
accurate trial.
Knowing and understanding the limitations periods that apply to your work
in your area is important to evaluating risk. Different states apply
various limitations periods and rules for their interpretation. Thus, as
with many other matters, it is important to understand the law that
applies to your specific situation.
Limitations v. Repose
Even lawyers have a tough time understanding the difference between
statutes of limitations and statutes of repose. A limitations period
starts to run from when the cause of action accrues. In contrast, a
statute of repose generally starts to run from the occurrence of an
independent event. For construction repose statutes, the repose period is
often tied to a construction related event, such as completion of the
defendant’s work or completion of the project.
Accrual
Accrual is when the statute of limitations starts to run. Accrual can be
tied to a number of different standards. For example, in Virginia,
statutes of limitations generally accrue upon the occurrence of any
damage, no matter how slight. The clock can be ticking in Virginia when
the potential plaintiff has no idea they have suffered any wrong.
Other states apply a discovery trigger. In Maryland, the statute of
limitations generally starts to run from when a plaintiff knew or
reasonably should have known that they had a cause of action. The
discovery rule applies to both tort claims for personal injury and
property damage as well as contract claims. The District of Columbia
applies a discovery trigger to tort claims. There is case law providing
that contract claims accrue from the time of the breach of contract.
Naturally, there are exceptions to these general rules. Under Virginia
law, fraud claims have a discovery trigger. Under Maryland law, claims
involving breach of warranty under the Uniform Commercial Code accrue from
when the goods are delivered.
Periods of Limitations
The specific time periods allowed to file suit vary from state to state as
well. Virginia law permits a plaintiff five years to file suit for breach
of a written contract and three years on an oral or implied agreement. For
personal injury cases, a plaintiff has two years to file suit. Property
damage claims have a five year statute of limitations.
Maryland law generally applies a three year statute of limitations to all
of the above claims. Some other claims are governed by specific statutes,
such as the four year breach of warranty statute in the Uniform Commercial
Code. The District of Columbia has a three year statute for contract,
personal injury and property damage claims.
Each state permits different causes of action beyond those listed here.
The important point here is to understand that wherever you are doing
business, it is a good idea to have an idea of how long you are exposed to
damage claims after you leave
Periods of Repose
Virginia has a five year statute of repose that runs from when a party
finishes its work on a construction project. Virginia’s repose statute is
limited to personal injury and property damage claims. Cases construing
the statute have ruled it does not apply to contract claims. Notably, the
statute also applies to contribution and indemnity actions.
The District of Columbia has a ten-year statute of repose on construction
projects running from project completion. The repose statute again applies
to only personal injury and property damage cases as opposed to contract.
The repose period also applies to contribution and indemnity claims.
Maryland’s statute of repose is ten years from when the structure is fit
for its intended purpose. The statute applies to wrongful death, personal
injury and property damage claims.
Timothy R. Hughes, Esq., is the principal of the Northern
Virginia law firm of Hughes & Associates, P.L.L.C. He specializes in
construction litigation, corporate and business related representation,
and complex civil litigation. He may be reached at
tim@hughesnassociates.com.
Printed with permission
from Mid-Atlantic Construction
http://midatlantic.construction.com/opinions/law/archive/0508.asp
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