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6-year statute bars contractor indemnity
(Continued
- Page 2)
Freeman moved for summary judgment based on the six-year
statute of repose and the six-year statute of limitations for claims
based on written contracts. The trial court granted the motion,
dismissing all of Ledcor’s claims against Freeman because
its settlement with Parkridge occurred more than six years after
substantial completion. Ledcor appealed.
The Ledcor court affirmed dismissal of the indemnity
claims. The court rejected Ledcor’s argument that the claims
for written and equitable indemnity were beyond the scope of the
statute. The court ruled that claims for contractual indemnity in
construction do "arise from" construction and therefore
fall within the scope of the statute. The Court of Appeals also
ruled that the claims "accrued" not when Parkridge sued
Ledcor but when Ledcor later paid money in settlement of the claims
against it.
Ledcor did not settle with Parkridge until a few weeks after the
statute of repose expired on December 5, 2000. Thus, the court ruled
that the statute of repose barred Ledcor’s contractual and
equitable indemnity claims against Freeman.
However, Ledcor did win reversal of the trial court’s
dismissal of its claims against Freeman for breach of contract arising
out of construction defects. Citing its recent decision in Architechtonics
Construction Management, Inc. v. Khorram, 111 Wn. App. 725 (2002),
the Court of Appeals ruled that the statute of limitations for contractual
construction-defect claims begins to run when a party knows, or
reasonably should know, of the other party’s breach. Thus,
applying this discovery rule to Ledcor’s claims, the court
ruled that issues of fact as to when Ledcor knew or should have
known of Freeman’s alleged defective work precluded summary
judgment on that claim.
| The Lee
Smart Quarterly is a publication of the law offices of Lee, Smart, Cook,
Martin & Patterson, P.S., Inc. for clients and others. It is intended
as general information only and is not to be construed as legal advice.
You should consult an attorney if you have any specific legal questions.
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