Dania, Inc. v. Skanska Usa Building, Inc.

Procedural entryThis page is a short order in Dania, Inc. v. Skanska Usa Building, Inc.. Read the opinion of the Court — 185 Wash. App. 359
Court of Appeals of Washington·Decided December 30, 2014·No. 45035-6·Published

Opinion

FILED COURT OF APPEALS DIVISION II

2014 DEC 30 AM 9 44

IN THE COURT OF APPEALS OF THE STATE ,' Kseier BY DIVISION II tl PITY

DANIA, INC., a Delaware corporation; No. 45035 -6 -II NORTHWEST WA PROPERTIES, LLC, a

Delaware limited liability company,

Appellant.

v.

SKANSKA USA BUILDING INC., a Delaware PUBLISHED OPINION corporation; McDONALD & WETLE ROOFING, INC., a Washington corporation,

Respondents.

LEE, J. — Dania, Inc. appeals the trial court' s summary dismissal of its construction defect

action against Skanska USA Building, Inc. Dania argues that the trial court erred in concluding

that the statute of repose, RCW 4. 16. 310, barred its action. Because there is a question of fact as

to whether Dania filed its complaint before the applicable limitations period expired, we hold that

the trial court erred in ruling as a matter of law that the statute of repose barred Dania' s complaint.

Accordingly, we reverse the summary judgment order dismissing Dania' s complaint against

Skanska and remand for further proceedings.

FACTS

On March 17, 2005, Dania entered into a contract with Skanska, as general contractor, for

the construction of a distribution warehouse in the city of Dupont, Washington (the City). Skanska

entered into a subcontract with McDonald & Wetle, Inc. ( M &W) for all required labor, material, No. 45035 -6 -II

equipment, supervision and coordination necessary to construct a complete roof system on the

warehouse.

On December 21, 2005, the City issued a temporary certificate of occupancy that permitted

Dania to occupy part of the warehouse. On the same date, M &W issued a two -year warranty

certifying that the roof was watertight.

In January 2006, Dania received permission from the City to use the full square footage of

the warehouse. Work continued on the warehouse, however, and a punch list issued on February

14, 2006, showed that several items of work remained, including the addition of a final layer of

the roofing membrane known as the " mineral cap sheet." Clerk' s Papers ( CP) at 143 -44, 183. The

mineral cap sheet contains ceramic granules for ultraviolet ( UV) protection and weatherability,

and its installation was part of M &W' s contract with Skanska.

M &W completed the mineral cap sheet installation on the roof on June 21, 2006. In

November 2006, Dania noticed leaks in the lobby area of the warehouse and elsewhere. M &W

made initial repairs, but Dania eventually hired an outside contractor in 2010 to repair the roof.

Dania filed suit against Skanska and M &W for breach of contract and negligence on April

4, 2012. Dania alleged that the roof was leaking because roofing materials, including the mineral

cap sheet, were not properly installed, and it claimed damages of almost $400, 000.

Skanska responded by moving for summary judgment under the construction statute of

repose, RCW 4. 16. 310, which bars any action for construction defects that fail to accrue within

six years of substantial completion of construction or termination of services, whichever is later.

Skanska argued that Dania' s complaint was untimely because it was filed more than six years after

January 2006, the project' s substantial completion date. Skanska also argued that the June 2006 No. 45035 -6 -II

roof work did not postpone the running of the statute of repose because that work was unrelated to

Dania' s complaint.

Dania successfully moved to delay consideration of the summary judgment motion so that

it could conduct discovery into Skanska' s contentions. Dania deposed Todd Barnes, Skanska' s

project manager for the warehouse construction, and asked him about the mineral cap sheet work

performed in June 2006:

Q: Now, you said that a cap sheet was installed on the roof in the summer of 2006. Can you tell me, what is a cap sheet? A: It' s the final layer of the roofing membrane. Q: What makes it different than any other layer of the roofing membrane? A: I couldn' t tell you the technical qualities, but it' s got ceramic granules, and those are mainly there for UV protection. Q: Without the cap sheet layer, was the roof still watertight? A: Correct, yes. Q: And do you know what contractor installed that cap sheet? A: McDonald & Wetle.

CPat182.

During the summary judgment hearing that followed, Skanska contended 'that the above

exchange from the Barnes deposition showed that the June 2006 cap work was unrelated to Dania' s

cause of action and that the statute of repose began to run from the date of the warehouse' s

substantial completion in January 2006. Skanska maintained that the statute of repose could not

start running when the mineral cap sheet was installed in June 2006 because the June work had

nothing to do with the leaks.

Dania replied that there was not yet any testimony about the cause of the leaking. RP 12.

When the court reasoned that it was possible that application of the mineral cap sheet caused the

leaking and asked whether there was any evidence in the record to create this issue of fact, Dania

3 No. 45035 -6 -II

responded that an issue of fact existed without additional evidence. The court then suggested that

it was Dania' s burden, as the nonmoving party, to respond with some evidence that the mineral

cap sheet caused the leaks. The court eventually agreed with Skanska that the lack of such

evidence showed that the statute of repose started to run from the date of substantial completion

and that Dania' s action was time barred. Dania appeals the order granting summary judgment and

dismissing Dania' s claim against Skanska.

ANALYSIS

A. STANDARD OF REVIEW

A moving defendant meets its initial burden on summary judgment by showing that there

is an absence of evidence to support the plaintiff' s case. Young v. Key Pharms., Inc., 112 Wn.2d

216, 225 n. 1, 770 P. 2d 182 ( 1989). The inquiry then shifts to the plaintiff to set forth specific facts

demonstrating a genuine issue for trial. Young, 112 Wn.2d at 225. An order granting summary

judgment should be affirmed if no genuine issue of material fact remains and the moving party is

entitled to judgment as a matter of law. CR 56( c). A material fact is one on which the outcome

of the litigation depends. Greater Harbor 2000 v. City ofSeattle, 132 Wn.2d 267, 279, 937 P.2d

1082 ( 1997). We review a summary judgment order de novo and consider the evidence and all

reasonable inferences therefrom in the light most favorable to the nonmoving party. Schaaf v.

Highfield, 127 Wn.2d 17, 21, 896 P.2d 665 ( 1995).

B. APPLICABLE LIMITATIONS PERIOD

Skanska moved for summary judgment on the basis that Dania' s action was barred by the

statute of repose, RCW 4. 16. 310. Dania responded by arguing that the statute of repose was

satisfied if the statute of limitations started running during the six years following Skanska' s

4 No. 45035 -6 -II

termination of services. Dania contended that its claims accrued in November 2006, when it

discovered that the roof was leaking, and that its April 2012 complaint was timely.

Skanska replied that Dania was improperly arguing that its filing deadline had been

extended by the discovery rule. Skanska asserted that under the statute of limitations for

construction contract claims codified in RCW 4. 16. 326( 1)( g), any defect claims arising out of a

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