HCBA Lawyer Magazine Vol. 28, No. 2 | страница 24

THiRd diSTRiCT CLARiFiES LiMiTATiOnS PERiOd APPLiCABLE TO COnSTRuCTiOn REPAiRS Construction law Section Chairs: Ryan Baya - Mills Paskert Divers & Derek Kantaskas - Carlton Fields A new Third district opinion should lend clarity to addressing limitations issues W hen addressing construction defects, both property owners and contractors often ask how repair work will be treated for statute of limitations purposes — i.e., will repairs be subject to the limitations period applicable to original construction under section 95.11(3)(c), Florida Statutes? Although many practitioners assume that repairs will be treated under the same limitations period applicable to original construction, the Third District Court of Appeal clarified the issue in some detail six months ago in Companion Property & Casualty Group. v. Built Tops Building Services, Inc., 218 So. 3d 989 (Fla. 3d DCA 2017). In Companion, plaintiff Companion Property & Casualty Group sued Built Tops Building Services, Inc., a construction services firm, for water damage suffered by its insured because of a negligent roof repair. Companion’s complaint, filed February 8, 2016, alleged that Built Tops performed the defective roof repair on November 21, 2006, and that the defective roof resulted in water intrusion and damage to the insured’s condominium structure on February 9, 2012. Built Tops obtained dismissal of Companion’s arising from repairs. © Can Stock Photo / johnnychaos claims on the grounds that the claims were time barred under section 95.11(3)(c) because the limitations period began on the initial repair date (November 21, 2006), rather than the date that the deficient repairs failed (February 9, 2012). Before the Third DCA, Companion asserted that limitations should be measured from the date of its actual “injury” — i.e., when the roof leak failure occurred in 2012 — not the date of actual repair. Companion ultimately prevailed, and the Third District reversed and remanded the trial court’s dismissal. In so doing, the Third DCA expressly held that “[w]ith regard to roof leaks on real property, the statute of limitations begins to run from the time the defect is discovered or should have been discovered.” Companion, 218 So. 3d at 991 (citing Kelley v. Sch. Bd. of Seminole County, 435 So. 2d 804 (Fla. 1983)). More interesting, the Third DCA also held that the roof repair was not governed by section 95.11(3)(c), because: (i) Companion’s claim was based in negligence; and (ii) repairs are not “improvements.” Id. Specifically, the court held that a claim arising from deficient repairs is not an “action founded on the design, planning, or construction of an improvement to real property” because improvements were more than “mere repairs” or an amelioration of existing conditions. Id. at 991 - 92 (quoting Dominguez v. Hayward Indus., Inc., 201 So. 3d 100 (Fla. 3d DCA 2015)). The court also relied on Pinnacle Port Community Association, Inc. v. Orenstein, 952 F.2d 375, 378 (11th Cir. 1992), where the Eleventh Circuit held that “repairs were intended not to enhance the assumed value of the property but to restore the walls to their original watertight state.” On the one hand, the Third DCA’s decision in Companion should provide courts clarity when addressing limitations issues arising from defective repair work. On the other hand, by holding that claims for defective repairs fall outside section 95.11(3)(c), further judicial attention will be required. Author: Mark A. Smith - Carey, O’Malley, Whitaker, Mueller, Roberts & Smith, P.A. Plan to Attend Construction Law Section’s Annual Half-Day CLE on Feb. 15, 2018. 22 NOV - DEC 2017 | HCBA LAWYER