Chantilly Partners v. James A. Federline, Inc.

26 Va. Cir. 1
CourtFairfax County Circuit Court
DecidedFebruary 14, 1991
DocketCase No. (Law) 88489
StatusPublished
Cited by3 cases

This text of 26 Va. Cir. 1 (Chantilly Partners v. James A. Federline, Inc.) is published on Counsel Stack Legal Research, covering Fairfax County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chantilly Partners v. James A. Federline, Inc., 26 Va. Cir. 1 (Va. Super. Ct. 1991).

Opinion

By Judge Thomas A. Fortkort

This matter is before the Court On demurrers and pleas in bar filed by defendants, James A. Federline, Inc., Vanguard Plastics, Inc., Shell Oil Company, Hoechst Celanese Corporation, and E. I. DuPont dé Nemours & Co., Inc., to Chantilly Partners’ second aménded motion for judgment. The Court heard oral argument and considered written memoranda.

DuPont

Chantilly filed a first amended motion for judgment on September 13,1989, adding DuPont as a new party defendant. Chantilly alleges causes of action against DuPont, a supplier of a resin used by manufacturers to produce acetal fitting, for (1) negligence, (2) breach of express warranty, (3) breach of implied warranty, (4) breach of implied warranty of merchantability, and (5) Racketeer Influenced and Corrupt Organizations (RICO) violations. DuPont’s demurrer and plea in bar to Chantilly’s amended motion for judgment is sustained for the following reasons.

[2]*2Chantilly alleges that DuPont manufactures a resin component of a product which was used by Vanguard to manufacture acetal fittings which allegedly have failed. The Court finds that plaintiff’s Count 4 negligence claim fails to state a cause of action against DuPont according to well-settled Virginia law set out in the Sensenbrenner case. Sensenbrenner v. Rust, Orling & Neale, 236 Va. 419 (1988). There is no privity of contract between DuPont and Chantilly. The relief being sought by Chantilly is for economic injury. Absent privity of contract, there is no action in tort for economic damages under Virginia law.

The second amended motion for judgment, page 5, paragraph 10, alleges . . . exposure to liability for loss of or damage to tenants’ personal property. Paragraph 29 alleges . . . hazard to tenants . . . risks of serious bodily harm to employees, tenants and occupants, and . . . two instances where employees were injured as a direct result of defects in the plumbing systems. Chantilly argues that this pleading now alleges that it suffered more than economic loss, so that the demurrer to the negligence claim should be overruled. The Court knows of no theory by which Chantilly can refer to personal injury claims that may have accrued to independent third parties and assert that those injuries are part of its claim.

As to Counts 7,8, and 9 for breach of warranties, Chantilly fails to state a cause of action against DuPont. Chantilly has not alleged that DuPont made any warranties of the resin product directly to Chantilly. DuPont had a specific exclusion of any warranties of its product to Vanguard. DuPont has filed a plea in bar to Chantilly’s warranty claims based on the expiration of the statute of limitations. DuPont is correct in arguing that the warranty counts are barred by the four-year limitation set forth in Va. Code § 8.2-723. This code section provides that a breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance and an action for breach of any contract for sale must be commenced within four years after the cause of action accrues. Also, see Luddeke v. Amana Refrigeration, Inc., 239 Va. 203 (1990). The accrual of the statute of limitations begins when the breach occurs. In this case, the breach occurred at the time the system began to experience difficulties, which was allegedly at the time the product was delivered between January, 1984, and May, 1985. The alleged defective product was delivered at the latest oh May 31,1985. Any [3]*3claims against DuPont would have to be brought by May of 1989 to avoid the expiration of the statute of limitations. More importantly, because DuPont is a remote manufacturer, not a party to the contract of sale, the three-year statute of limitations provided for in § 8.01-246 of the Va. Code 1950 as amended, applies to them. See, W. S. Rapp Co. v. Whitlock Equipment Co., 222 Va. 80 (1981). Because suit against DuPont was not brought until September 13, 1989, Chantilly’s claims are barred by the statute of limitations.

It is the opinion of this Court that Chantilly’s RICO claim against DuPont is barred by the statute of limitations. According to the decision reached in Agency Holding Corp. v. Maley-Duff and Associates, Inc., 483 U.S. 143, 107 S. Ct. 2759 (1987), the statute of limitations for RICO claims is four years. This statutory period begins to run when the plaintiff discovers or should have discovered the injury underlying the RICO claim. See, Pocahontas Supreme Coal Co. v. Bethlehem Steel, 828 F.2d 211 (4th Cir. 1987). The latest time at which the statute of limitations accrued in this case is May 31,1985. Because Chantilly did not bring this claim against DuPont until September 13, 1989, it is barred by the statute of limitations.

Plaintiff’s Ad Damnum claim for punitive damages is moot in light of the Court’s findings that Chantilly has failed to state any cause of action against DuPont, and the expiration of the statute of limitations bars all claims.

Hoechst Celanese

Celanese’s demurrer to the amended motion for judgment is sustained for the following reasons. Celanese supplied a resin which Vanguard and U.S. Brass used to manufacture acetal fittings which allegedly failed. The Sensenbrenner decision bars the negligence claim against Celanese because there is no privity of contract between Celanese and Chantilly, and Chantilly has claimed only an economic loss. Under well-established Virginia law, absent privity of contract, there can be no claim in tort for economic loss. In addition, Chantilly has unsuccessfully attempted to save the negligence claim by claiming third party personal injury claims for which they have no standing.

Chantilly has claimed a breach of express warranty against Celanese in Count 7. Count 8 alleges a breach of warranty of fitness for a particular purpose. Count 9 alleges a breach of implied warranty of merchantability against Celanese.

[4]*4Celanese argues that Counts 7,8, and 9 are barred by the applicable statute of limitations. According to the holding in W. S. Rapp Co. v. Whitlock Equipment Co., 222 Va. 80, 88-89 (1981), Celanese is a remote manufacturer not having been a party to the contract of sale but a supplier of parts and, as such, is held to a three-year statute of limitations period. Also, the Va. Code § 8.01-246(4) provides for a three-year statute of limitations period for any unwritten contract, expressed or implied. The alleged breach in this case occurred when the plaintiffs first experienced difficulty, sometime between January, 1984, and May, 1985. The warranty claims were not asserted against Celanese until August, 1990, even if they relate back to the filing of the original motion for judgment filed on December 30, 1989, they do not survive the statute of limitations. Chantilly would have had to file causes of action against Celanese no later than May of 1988. Therefore, these claims are barred by the applicable statute of limitations.

Chantilly’s (RICO) claim raised against Celanese in Count 10 of the second amended motion for judgment is barred by the statute of limitations for the following reasons. A cause of action under RICO accrues when the plaintiff knows or has reason to know of the injury which underlies the cause of action according to Pocahontas Supreme Coal Co. v. Bethlehem Steel Corp.,

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Bluebook (online)
26 Va. Cir. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chantilly-partners-v-james-a-federline-inc-vaccfairfax-1991.