Cindy Maxwell, Pr Of The Estate Of Brown, V Atlantic Richfield Co.

Court of Appeals of Washington·Decided November 24, 2020·No. 53252-2·Published

Opinion

Filed

Washington State

Court of Appeals

Division Two

November 24, 2020

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

CINDY MAXWELL, as Personal No. 53252-2-II Representative of the Estate of Edmond Brown, and MARILOU BROWN,

Appellants,

v. PUBLISHED OPINION

ATLANTIC RICHFIELD CO.; BECHTEL CORPORATION; CBS CORPORATION, a Delaware Corporation f/k/a Viacom, Inc., successor by merger to CBS CORPORATION, a Pennsylvania Corporation f/k/a WESTINGHOUSE ELECTRIC CORPORATION and TOTAL ENGINEERED MAINTENANCE COMPANY; CRANE CO.; FOSTER WHEELER ENERGY CORPORATION; METALCLAD INSULATION CORPORATION; METROPOLITAN LIFE INSURANCE COMPANY, INC.; SABERHAGEN HOLDINGS, INC.; SEQUOIA VENTURES INC., f/k/a BECHTEL CORPORATION; UNION CARBIDE CORPORATION,

Defendants,

BRAND INSULATIONS, INC. and PARSONS GOVERNMENT SERVICES, INC.,

Respondents.

MAXA, J – Cindy Maxwell, the personal representative of the Estate of Edmond Brown, and Marilou Brown (collectively the Browns) appeal the trial court’s order granting summary judgment in favor of Parsons Government Services, Inc. (Parsons) and Brand Insulations, Inc.

(Brand). The lawsuit arose from Edmond’s1 alleged exposure to asbestos between 1971 and 1972 during the construction of Atlantic Richfield Corporation’s (ARCO) petroleum refinery at Cherry Point in Ferndale. Parsons was the general contractor who constructed the Cherry Point refinery and Brand was the insulation subcontractor who installed asbestos-containing insulation and gaskets during construction of the refinery. Edmond was diagnosed with mesothelioma, an asbestos-related disease, in 2018.

The trial court granted summary judgment in favor of both Parsons and Brand based on RCW 4.16.300 and RCW 4.16.310, which provide a six-year statute of repose for claims arising from the construction of improvements upon real property. The Browns argue that questions of fact exist regarding application of the construction statute of repose to their claims against both parties.

We hold that (1) both Parsons and Brand satisfied the “construction activities”

requirement of RCW 4.16.300 because there is no evidence that the Browns’ claims arose from Parsons’ and Brand’s sale of asbestos-containing insulation rather than from their construction activities; (2) both Parsons and Brand satisfied the “improvement upon real property” requirement of RCW 4.16.300 because the installation of the insulation occurred during the construction of the Cherry Point refinery, which was an improvement upon real property; and (3) the Browns’ argument based on the 2004 amendment to RCW 4.16.300 has no merit because the 1967 version of the statute applies in this case. Therefore, we affirm the trial court’s grant of summary judgment in favor of Parsons and Brand.

1 To avoid confusion, this opinion refers to Edmond Brown by his first name. No disrespect is intended.

FACTS

Background In 1968, ARCO hired Parsons2 as the design-build general contractor for the construction of ARCO’s Cherry Point petroleum refinery. The contract identified the work to be performed as “the design, engineering, purchasing and construction of the Refinery.” Clerk’s Papers (CP) at 54. Specifically, Parsons’ scope of work included the “design, engineering and construction” of the refinery and the purchase of all necessary “equipment, machinery, apparatus, materials and supplies.” CP at 54.

The contract provided that Parsons would be compensated on a “cost plus” basis. CP at 117. Under this arrangement, Parsons was reimbursed for actual costs incurred, including amounts paid for labor, machinery, materials, and under subcontracts, plus an additional percentage of those costs. Parsons would purchase construction materials and would receive reimbursement from ARCO under the contract.

Parsons subcontracted with Brand to install thermal insulation and gaskets for certain portions of the refinery. Specifically, Brand’s scope of work was the “installation of thermal insulation of columns, heat exchangers, vessel, reformers, tanks and piping in the various refinery units” for the refinery. CP at 126. The subcontract identified 16 units and areas where Brand would install the insulation. Brand was responsible for furnishing the materials needed to complete the insulation work. The subcontract required Parsons to pay Brand’s actual invoice costs for materials that Brand used to complete the work.

2 At that time, Parsons was known as The Ralph M. Parsons Company.

Some of the insulating materials Brand installed, including cement and tape, contained asbestos. Brand would use hand saws to cut the insulation in order to install it, which created dust that contained asbestos.

Brand performed its work on the Cherry Point refinery project between January 1971 and March 1972. Substantial completion of the entire project was in June 1972.

Between 1971 and 1985, Edmond worked as a technician and operator in the coker unit of the Cherry Point refinery. Brown’s duties included cleaning debris, picking up insulation, and sweeping dust.

In 2018, Edmond was diagnosed with mesothelioma. The Browns filed a lawsuit in Pierce County Superior Court against multiple defendants, including Parsons and Brand, for personal injuries sustained due to asbestos exposure. The Browns asserted liability based on multiple theories.

In interrogatory answers, the Browns alleged that their claims against Parsons were based on Parsons’ “work designing and constructing” the Cherry Point refinery. CP at 221. Specifically, the Browns claimed that Parsons was liable for (1) directing and requiring the use of asbestos-containing insulation; (2) supplying for use asbestos-containing insulation; and (3) directing, supervising and otherwise participating in the installation of asbestos-containing insulation. Brown alleged that Brand was one of the entities that had supplied the insulation.

Parsons and Brand moved for summary judgment under RCW 4.16.300 and .310, the construction statute of repose. The trial court granted summary judgment in favor of both Parsons and Brand. The court stated, “[I]f indeed the statute of repose does not govern this, I don’t know when the statute of repose would.” Report of Proceedings at 38.

The Browns appeal the trial court’s summary judgment order.

ANALYSIS

A. SUMMARY JUDGMENT STANDARD We review a trial court’s decision on a summary judgment motion de novo. Zonnebloem, LLC v. Blue Bay Holdings, LLC, 200 Wn. App. 178, 182, 401 P.3d 468 (2017). Summary judgment is appropriate if there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Id.; CR 56(c). A genuine issue of material fact exists if reasonable minds could disagree on the conclusion of a factual issue. Id. at 182-83. We view all facts and reasonable inferences drawn from those facts in the light most favorable to the nonmoving party. Id. at 182.

The moving parties – here, Parsons and Brand – bear the initial burden of proving that there is no genuine issue of material fact. Id. at 183. Once a moving defendant shows that there is an absence of evidence to support the plaintiff’s case, the burden shifts to the plaintiff to present specific facts that rebut the defendant’s contentions and show a genuine issue of material fact. Id. B. CONSTRUCTION OF STATUTE OF REPOSE 1. Statutory Language “A statute of repose terminates the right to file a claim after a specified time even if the injury has not yet occurred.” Wash. State Major League Baseball Stadium Pub. Facilities Dist. v. Huber, Hunt & Nichols-Kiewit Constr. Co., 176 Wn.2d 502, 511, 296 P.3d 821 (2013).

The construction statute of repose is set forth in RCW 4.16.300 and .310.3

3 RCW 4.16.300 and .310 were enacted in 1967, and have been amended twice since then. However, the operative language relevant to this appeal has remained unchanged except where noted. Therefore, we cite to the current versions of the statutes.

RCW 4.16.300 states,

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