Bulau v. Hector Plumbing and Heating Co.

387 N.W.2d 659
CourtCourt of Appeals of Minnesota
DecidedAugust 13, 1986
DocketC4-85-2000
StatusPublished
Cited by8 cases

This text of 387 N.W.2d 659 (Bulau v. Hector Plumbing and Heating Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bulau v. Hector Plumbing and Heating Co., 387 N.W.2d 659 (Mich. Ct. App. 1986).

Opinions

OPINION

FORSBERG, Judge.

This is an appeal by 20th Century Building Center, a general contractor, from a judgment requiring it to pay, as contribution, a percentage of the judgment recovered against its subcontractor, respondent Hector Plumbing. The trial court ruled that the contribution claim was not barred by the statute of limitations. Respondent seeks review of an award of prejudgment interest. We affirm.

FACTS

Plaintiffs Glenn and Janet Bulau contracted with appellant 20th Century Building Center to construct a house. 20th Century subcontracted the electrical, plumbing and heating work to Hector Plumbing and Heating [Hector], The house was substantially completed on February 18, 1981, and the Bulaus moved in. A year later, on February 19, 1982, the house caught fire, causing significant damage to a part of the structure.

Lowell Grimm, Hector’s owner, was notified of the fire and went to the house on the same day it occurred. Don Ploeger, president of 20th Century, also visited the site on the day of the fire.

The fire began in the area in which Hector had installed a fireplace. When deposed, Grimm admitted his immediate conclusion was that the fire was caused by the failure to place fire-retardant materials around the chimney installed for the fireplace.

The Bulaus sued Hector on August 15, 1983, for negligent design and construction, strict liability, and breach of warranties, both express and implied. The trial court later dismissed the strict liability and breach of warranty claims.

On August 3, 1984, Hector brought a third-party action for contribution against appellant 20th Century as well as Marvin Degner, the subcontractor who had installed the brickwork around the fireplace. Appellant pleaded as an affirmative defense the two-year statute of limitations applicable to actions arising from improvements to real property. Minn.Stat. § 541.051, subd. 1 (1984). Appellant then brought a motion to dismiss, claiming the statute had begun to run on the contribution claim at the time of the fire, and the action was therefore barred.

After the third-party action was commenced, the Bulaus sought to amend their complaint by adding 20th Century as a defendant.

The trial court denied the Bulaus’ motion to add 20th Century as a defendant, ruling that the two-year statute of limitations had run on their cause of action. Minn.Stat. § 541.051, subd. 1. The court did not dismiss the third-party action, however, ruling that the cause of action for contribution does not accrue until damages have been assessed against the party seeking contribution.

Prior to trial, the parties stipulated that damages were $34,100. Hector Plumbing made an oral offer to settle for $12,000, and the Bulaus made a counter-offer of $32,000. The jury returned a special verdict finding the Bulaus and third-party defendant Degner not negligent, and apportioning negligence 60% to Hector Plumbing and 40% to 20th Century.

The trial court ordered the taxation of costs, disbursements and prejudgment interest. By supplemental order, it directed [661]*661appellant 20th Century to pay to Hector Plumbing, as contribution, 40% of any payments made to the Bulaus on the judgment.

ISSUES

1. Did the trial court err in ordering appellant 20th Century to pay part of the judgment as contribution?

2. Did the court err in awarding prejudgment interest?

ANALYSIS

1. Contribution and the statute of limitations

The statute of limitations for actions involving improvements to real property reads, in part, as follows:

Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained on account of the injury, shall be brought against any person performing or furnishing the design * * * or construction of the improvement to real property * * * more than two years after discovery thereof, nor, in any event shall such a cause of action accrue more than 15 years after substantial completion of the construction.

Minn.Stat. § 541.051, subd. 1 (1984) (emphasis added).

Appellant contends that the plain language of the statute bars actions for contribution brought more than two years after the discovery of “the defective and unsafe condition.” Id. Plaintiffs and respondent maintain that the statute cannot be read to run from the discovery of the defect, since an action for contribution does not accrue until one of the tortfeasors is obliged to pay more than its fair share of plaintiff's damages. See Grothe v. Shaffer, 305 Minn. 17, 232 N.W.2d 227 (1975).

The supreme court has reiterated the general rule of Grothe v. Shaffer in discussing the statute of limitations at issue here:

Thus, the statute of limitations does not begin to run on the claim of one joint tortfeasor for contribution from another joint tortfeasor until one of the joint tort-feasors had paid more than his fair share of the damage.

Calder v. City of Crystal, 318 N.W.2d 838, 841 (Minn.1982) (quoting Grothe v. Shaffer, 305 Minn. 17, 24, 232 N.W.2d 227, 232 (1975)).

This discussion in Calder, however, related to retroactive application of the statute. The court, therefore, was not asked to decide when the two-year limitations period begins to run on a contribution action. Moreover, the limitations period argued in Calder was the 15-year period from “substantial completion of the construction.” Minn.Stat. § 541.051, subd. 1 (1984); see Calder, 318 N.W.2d at 839.

The statute makes the two-year limitations period run from the “discovery” of an event or condition. There are several events or conditions mentioned, however, and this reference is ambiguous. The statute mentions not only the “injury,” but also the “defective and unsafe condition,” which may be discovered, as well as the “action” for contribution or indemnity. It is also arguable that the triggering event is “damages sustained” which would appear to be the position of the trial court. Since the statute is ambiguous, we must ascertain the probable legislative intent behind it a,nd construe the statute accordingly. Beck v. City of St. Paul, 304 Minn. 438, 231 N.W.2d 919 (1975).

Statutes of limitation generally are intended for the repose of the defendant, the prevention of stale claims, and the fair and effective administration of justice. Minn. Stat. § 541.051 in particular affords an earlier repose to contractors who otherwise face indeterminate prospects of liability on long-completed projects. It was enacted in response to the erosion of the privity-of-contract doctrine as a shelter to architects [662]*662and builders from liability to third parties. Kittson County v.

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Bulau v. Hector Plumbing and Heating Co.
387 N.W.2d 659 (Court of Appeals of Minnesota, 1986)

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