Commonwealth v. Owens-Corning Fiberglas Corp.

385 S.E.2d 865, 238 Va. 595, 6 Va. Law Rep. 765, 1989 Va. LEXIS 179
CourtSupreme Court of Virginia
DecidedNovember 10, 1989
DocketRecord 880533
StatusPublished
Cited by45 cases

This text of 385 S.E.2d 865 (Commonwealth v. Owens-Corning Fiberglas Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Owens-Corning Fiberglas Corp., 385 S.E.2d 865, 238 Va. 595, 6 Va. Law Rep. 765, 1989 Va. LEXIS 179 (Va. 1989).

Opinions

Justice Russell

delivered the opinion of the Court.

In this appeal, we consider whether, as the trial court ruled, Code § 8.01-250,1 a statute of repose, operates against the Commonwealth. The facts relevant to that question are not in dispute.

The Commonwealth filed suit on February 26, 1985, seeking to recover the costs of abating the hazard of building materials containing asbestos that were installed in 1,016 public buildings and facilities located throughout the Commonwealth. Claiming compensatory damages of $24,752,274, and punitive damages of $25,000,000, the Commonwealth named Owens-Corning Fiberglas Corporation and 34 others as defendants.

The defendants filed responsive pleadings and certain special pleas. Included was a motion for summary judgment invoking the provisions of Code § 8.01-250. In order to facilitate determination of that motion, the parties stipulated that all the asbestos materials had been installed in the buildings during construction that had been completed more than five years before the Commonwealth filed its suit.

In a letter opinion, the trial court ruled that “since the statute in question is one of repose and not limitations, ... the plaintiff is barred from maintaining the suit,” that the defendants’ motion [598]*598was “well taken,” and that the defendants were entitled to summary judgment. In a motion to reconsider, the Commonwealth complained that the trial court had not determined whether the sovereign is exempt from the statute of repose and, if not, whether the statute offends constitutional guarantees. Denying the motion for reconsideration, the trial court entered final judgment dismissing the motion for judgment, and we granted the Commonwealth an appeal.2

The trial court rested its rulings on our decision in School Bd. of the City of Norfolk v. U.S. Gypsum, 234 Va. 32, 360 S.E.2d 325 (1987). There, we held that Code § 8.01-250 is a statute of repose and that, unlike a “pure” statute of limitations that merely bars the maintenance of a remedy, the statute of repose bars the remedy and extinguishes the underlying cause of action. The exemption from suit accorded those named in the statute is a substantive right protected by the due process clause of the Constitution of Virginia, Article I, Section 11.

In overruling the motion to reconsider, the trial court necessarily rejected the contention that the Commonwealth is exempt from the operation of Code § 8.01-250. That question was not raised in U.S. Gypsum, and we consider it now as a matter of first impression.

We begin with an analysis of the three distinct types of statutory enactments aimed at precluding litigation of stale claims. First, and most familiar, are procedural or “pure” statutes of limitation. These serve merely to time-restrict the assertion of a remedy. They furnish an affirmative defense and are waived if not pleaded. Second are substantive or “special” statutes of limitation. [599]*599They are ordinarily contained in statutes which create a new right and become elements of that newly-created right, restricting its availability. Compliance with such a statute is a condition precedent to maintenance of a claim. Barksdale v. H.O. Engen, Inc., 218 Va. 496, 498, 237 S.E.2d 794, 796 (1977). Third, and particularly pertinent here, are statutes of repose. The time limitations of such statutes begin to run from some legislatively selected point in time which is unrelated to the accrual of any cause of action or right of action, whether accrued or yet to accrue. Such statutes reflect a legislative policy determination that a time should come beyond which a potential defendant will be immune from liability for his past acts and omissions. U.S. Gypsum, 234 Va. at 37, 360 S.E.2d at 327-28.

With respect to the first category, it has been a part of the common law from time immemorial that the statute of limitations does not run against the sovereign. Nullum tempus occurrit regi is a rule that applies to the Commonwealth as it did to the Crown. Taylor & als’ Case, 70 Va. (29 Gratt.) 780, 794 (1878). Further, the General Assembly has codified the rule in Code § 8.01-231, which provides:

No statute of limitations which shall not in express terms apply to the Commonwealth shall be deemed a bar to any proceeding by or on behalf of the same. This section shall not, however, apply to agencies of the Commonwealth incorporated for charitable or educational purposes.3

In Commonwealth v. Spotsylvania, 225 Va. 492, 495, 303 S.E.2d 887, 889-90 (1983), we held that Code § 8.01-231, which makes no distinction between “pure” and “special” statutes of limitation, applies to the second category, above, as well as to the first. The Commonwealth now argues that Code § 8.01-231, or the principle it codifies, should also apply to the third category, [600]*600for the same public policy reasons as those which support the common-law rule.

We do not agree. Ours is a government whose powers are limited by the Constitution. Where statutory enactments and common-law rules come into conflict with constitutional principles, the latter must prevail. We decided, in U.S. Gypsum, that after the statute of repose, Code § 8.01-250, had run, the potential defendants in that case had acquired substantive rights which the legislature could not constitutionally impair. More recently, in Roller v. Basic Construction Co., 238 Va. 321, 384 S.E.2d 323 (1989), we noted that when a statute of repose has run on a tort claim, all causes of action are extinguished, “creating a substantive right of repose in the potential defendants” which the legislature may not abridge. Id. at 321, 384 S.E.2d at 323 (emphasis added).

The Commonwealth argues that although rights of repose might accrue to potential defendants if sued by another plaintiff, such rights could never accrue against the Commonwealth because it was a potential plaintiff which had always been immune from any limitation bars. Thus, the argument runs, a potential defendant is always exposed to suit at the hands of the sovereign and any constitutionally protected rights of repose which may attach because of the lapse of time are always limited by, and subject to, that risk.

We do not agree. The Commonwealth’s argument treats this classic collision between a constitutionally protected right and a statutory power as one in which the statute, or the common-law maxim it codifies, must prevail. That result is repugnant to the bedrock principles of constitutional government.

The ancient common-law rule nullum tempus occurrit regi remains generally accepted as to traditional procedural statutes of limitations. Authorities in other jurisdictions are divided upon the question whether the rule applies also to substantive, or special limitations, but, as noted above, we held,, in Spotsylvania, that its statutory counterpart does so apply.

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Bluebook (online)
385 S.E.2d 865, 238 Va. 595, 6 Va. Law Rep. 765, 1989 Va. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-owens-corning-fiberglas-corp-va-1989.