Andres v. McNeil Co., Inc.

707 N.W.2d 777, 270 Neb. 733, 2005 Neb. LEXIS 199
CourtNebraska Supreme Court
DecidedDecember 9, 2005
DocketS-04-953
StatusPublished
Cited by71 cases

This text of 707 N.W.2d 777 (Andres v. McNeil Co., Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andres v. McNeil Co., Inc., 707 N.W.2d 777, 270 Neb. 733, 2005 Neb. LEXIS 199 (Neb. 2005).

Opinion

*735 Miller-Lerman, J.

NATURE OF CASE

Appellant Polly N. Andres sued appellees McNeil Company, Inc. (McNeil), a contractor, and E & K of Omaha, Inc. (E&K), one of McNeil’s subcontractors, in the district court for Douglas County, alleging that her home was defectively constructed. Appellees each filed motions that the district court treated as motions for summary judgment. In their motions, appellees asserted that appellant’s claims were barred by the applicable statutes of limitations. The district court granted the motions and dismissed appellant’s complaint in its entirety. We find no error in that portion of the court’s ruling dismissing the complaint as to E&K. However, because we conclude that a genuine issue as to a material fact remains concerning whether McNeil fraudulently concealed pertinent information, thereby preventing appellant from gaining timely knowledge about allegedly defective construction of the home within the 4-year statute of limitations set forth in Neb. Rev. Stat. § 25-223 (Reissue 1995), we reverse that portion of the district court’s order that dismissed appellant’s complaint against McNeil. Accordingly, we affirm in part, and in part reverse, and remand for further proceedings.

STATEMENT OF FACTS

Appellant and her husband contracted with McNeil to design and build a house located in Omaha, Nebraska. The house was completed in January 1994. The house had a 1-year warranty on workmanship and materials, with 3 additional years for the roof and 5 additional years for the “Exterior Insulation Finish System,” or EIFS, a type of exterior faux-stucco covering. In their briefs, the parties also refer to the EIFS as “Dryvit.” The parties agreed during oral argument that the terms “EIFS” and “Dryvit” refer to the same material, the exterior faux-stucco covering on the house. E&K was the subcontractor that installed the EIFS.

On May 28, 2003, appellant filed suit against appellees. The complaint contains five “counts,” asserted against appellees as follows: count I, “Breach of Implied Duty to Perform in a Workmanlike Manner,” alleged against both appellees; count II, “Breach of Implied Warranty of Habitability,” alleged against *736 both appellees; count III, “Negligence,” alleged against both appellees; count IV, “Fraudulent Concealment,” alleged against McNeil; and count V, “Breach of Express Warranty,” alleged against McNeil.

In summary, appellant alleges that McNeil completed the construction of the home in 1994 and that soon after taking possession of the house, she and her husband began to experience water leaking into the home through the tile roof, resulting in water damage to the interior of the home. Appellant alleges that she contacted McNeil, who in turn contacted a subcontractor, to make repairs to the tile roof. Appellant alleges that the subcontractor made certain repairs to the roof; however, the roof continued to leak. Appellant further alleges that in approximately the fall of 2002, as a result of the ongoing water problems with the roof, she contacted a roofing company that informed appellant that the leaks were caused by improper construction of the roof. Appellant alleges that this was the first information made known to her that the original installation of the roof was improper and that it was at this time she was informed that water intrusion had been detected in certain of the interstitial areas of the house coated with the EIFS material applied by E&K.

Taken as a whole, appellant alleges in her complaint that McNeil fraudulently concealed material facts regarding the defective construction of the house and that McNeil’s conduct prevented appellant, despite her diligence, from discovering McNeil’s misconduct until 2002. Appellant’s specific allegations include the following:

6. Subsequent to [appellant’s] taking possession of the home, [appellant] continued to request that . . . McNeil complete . . . nonconforming work to complete the home. This nonconforming work included, but was not necessarily limited to, the roof, which leaked. . . . McNeil provided continued assurances that the roof leak was but a minor problem and would be made to conform to workmanlike standards. . . . McNeil called upon a subcontractor ... to provide necessary inspection and work to conform with the original implied and express warranties .... McNeil repeatedly assured [appellant] that the necessary work was completed and these assurances continued.
*737 12. . . . McNeil knew of said defects at all pertinent times, but continually assured [appellant] that such defects did not exist and that any leaks could be easily remedied.
15. [McNeil’s] actions, including his [sic] concealment of material facts, have caused such damage to [appellant’s] property that repairs will not restore the property to its original market value. . . .
33.... McNeil at all times fraudulently ... concealed the nature of defects and the potential for damages associated with the accumulation of water in the interior of the home.
34. . . . McNeil at all times fraudulently . . . concealed that it had known that during the construction of the home that the original roof subcontractor and E & K, failed to perform proper roof tile installation work and EIFS application, even though repeatedly requested to do so, and concealed that during this same period of time [McNeil] repeatedly requested the roofing contractor to correct work which it had performed, and further concealed that during this time [McNeil] knew that many items about the roofing contractor’s work were not acceptable and were not fixed after repeated requests, while disclosing none of this to [appellant].. . . McNeil further knew of the improper EIFS application but took no action to correct the same and actively concealed it from [appellant].
37. Due to [McNeil’s] concealment, of relevant facts [appellant] does not know with certainty the exact nature of each and every reason for the roof and EIFS failure.
41.... McNeil concealed and continues to conceal from [appellant] material facts which have prevented [appellant] from discovering [McNeil’s] negligence.
42. . . . McNeil’s fraudulent concealment . . . ha[s] caused [appellant] damage.
43. [McNeil] should be estopped from asserting any claim of the statute of limitations due to the active *738 concealment of material facts as noted above preventing [appellant] from asserting her claim prior to disclosure of the material facts in September and October of 2002.

In appellant’s complaint, she also alleged that she had sustained various damages and sought relief therefor.

In response to the allegations in appellant’s complaint, appellees each filed a motion to dismiss. In the motions to dismiss, each appellee asserted that appellant’s complaint failed to state a cause of action because appellant had failed to file her complaint within the applicable statute of limitations.

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Cite This Page — Counsel Stack

Bluebook (online)
707 N.W.2d 777, 270 Neb. 733, 2005 Neb. LEXIS 199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andres-v-mcneil-co-inc-neb-2005.