Federal Ins. Co. v. KONSTANT ARCHITECTURE PLAN., INC.

902 N.E.2d 1213
CourtAppellate Court of Illinois
DecidedFebruary 11, 2009
Docket1-08-0938
StatusPublished

This text of 902 N.E.2d 1213 (Federal Ins. Co. v. KONSTANT ARCHITECTURE PLAN., INC.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Ins. Co. v. KONSTANT ARCHITECTURE PLAN., INC., 902 N.E.2d 1213 (Ill. Ct. App. 2009).

Opinion

902 N.E.2d 1213 (2009)

FEDERAL INSURANCE COMPANY, as subrogee of Thomas and Anita Croghan, Plaintiff-Appellant,
v.
KONSTANT ARCHITECTURE PLANNING, INC., and Hanson Roofing, Inc., Defendants-Appellees.
(Hanson Roofing, Inc., Third-Party Plaintiff;
P.T. Construction, Inc., Third-Party Defendant.)

No. 1-08-0938.

Appellate Court of Illinois, First District, Third Division.

February 11, 2009.

*1214 Cozen O'Connor (Larry R. Eaton, of counsel), Chicago, for Appellant.

Stamos & Trucco, LLP (James J. Stamos, of counsel), Chicago, for Appellees.

Justice QUINN delivered the opinion of the court:

Plaintiff, Federal Insurance Company (Federal), brought suit against defendant Konstant Architects[1], alleging breach of contract with respect to the design and building of a residence insured by plaintiff. Defendant filed a motion to dismiss the case under section 2-619(a)(5) of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(5) (West 2006)), arguing that the action was time-barred. The circuit court granted defendant's motion and dismissed the case. Plaintiff now appeals. For the following reasons, we affirm.

Plaintiff filed a complaint on September 9, 2005. The complaint alleged that Thomas and Anita Croghan entered into a contract with defendant to design a home in Winnetka, Illinois. The contract consisted of a standard form agreement between owner and architect, which was a document issued by the American Institute of Architects (AIA). Article 9.3 of the contract provides:

"Causes of action between the parties to this Agreement pertaining to acts or failures to act shall be deemed to have accrued and the applicable statutes of limitations shall commence to run not later than either the date of Substantial Completion, or the date of issuance of the final Certificate for Payment for acts or failures to act occurring after Substantial Completion."

The parties agree that the home was built and substantially completed in 1997. The Croghans discovered water and mold damage in their home on November 7, 2002. The damages and remediation caused by water intrusion and mold infestation resulted in costs to repair in excess of $300,000. Plaintiff paid the Croghans for these losses pursuant to an insurance policy that it had previously issued to the Croghans. As a result, plaintiff became subrogated to the rights of its insureds, the Croghans.

In the complaint, plaintiff alleged that defendant breached the AIA contract by: *1215 (1) failing to properly design the Croghans' home, including the failure to provide proper ventilation and a roof design to prevent ice damming, leaking, and water intrusion; (2) failing to properly supervise the installation of the roof to prevent ice damming, water intrusion, and mold infestation; and (3) failing to warn the Croghans that their home, as designed and built, was at risk of having ice damming, water infiltration, and possible mold infestation.

Defendant filed a motion to dismiss the case under section 2-619(a)(5) of the Code. Defendant argued that the cause of action was time-barred because plaintiff had failed to file suit within the four-year limitations period governing the construction of improvements to real property (735 ILCS 5/13-214(a) (West 2006)). Defendant maintains that pursuant to the AIA contract, specifically Article 9.3, the statute of limitations began to run at the time the house was completed in 1997, and, therefore, plaintiff did not file its complaint within the requisite four-year period.

On September 8, 2006, the circuit court entered an order granting defendant's motion to dismiss plaintiff's complaint. In doing so, the circuit court found that the four-year limitations period applied to this case (735 ILCS 5/13-214(a) (West 2006)) and that Article 9.3 of the AIA contract provided that the applicable four-year period began to run on the date of substantial completion. Because four years had elapsed since the date of substantial completion, the circuit court concluded that plaintiff's complaint was time-barred. Plaintiff now appeals.

The circuit court dismissed this case under section 2-619(a)(5) of the Code, which allows for the involuntary dismissal of an action that "was not commenced within the time limited by law." 735 ILCS 5/2-619(a)(5) (West 2006). Such a dismissal is subject to de novo review. Alvarez v. Pappas, 229 Ill.2d 217, 220, 321 Ill.Dec. 712, 890 N.E.2d 434 (2008).

On appeal plaintiff contends, as it did below, that the statute of limitations applicable to this case is section 13-206, which provides for a 10-year limitations period. Defendant contends that the four-year limitation period under section 13-214(a) is applicable to this case. We agree with defendant.

Section 13-206 provides a ten-year limitations period for "actions on bonds, promissory notes, bills of exchange, written leases, written contracts, or other evidences of indebtedness in writing." 735 ILCS 5/13-206 (West 2006). Section 13-214(a) provides:

"Actions based upon tort, contract or otherwise against any person for an act or omission of such person in the design, planning, supervision, observation or management of construction, or construction of an improvement to real property shall be commenced within 4 years from the time the person bringing an action, or his or her privity, knew or should reasonably have known of such act or omission." 735 ILCS 5/13-214(a) (West 2006).

Section 13-214(a) protects a party who is being sued because it either engaged in an activity enumerated in section 13-214(a) (People ex rel. Skinner v. Hellmuth, Obata & Kassabaum, Inc., 114 Ill.2d 252, 261, 102 Ill.Dec. 412, 500 N.E.2d 34 (1986)), or failed to engage in such an activity (DeMarco v. Ecklund, 341 Ill.App.3d 225, 227-28, 275 Ill.Dec. 173, 792 N.E.2d 404 (2003)). Thus, section 13-214(a)'s limitation period applies to an action alleging faulty construction against the architectural and engineering firm, general contractor, and masonry subcontractor involved in the building's construction. Hellmuth, 114 Ill.2d at 263, 102 Ill.Dec. 412, 500 N.E.2d 34.

*1216 Section 13-214(a) has been held to apply to a landowner's failure to build a water retention pond (DeMarco, 341 Ill.App.3d at 227, 275 Ill.Dec. 173, 792 N.E.2d 404); a water reclamation district's failure to pay for work generated by the district in its capacity as a construction supervisor (Blinderman Construction Co., v. Metropolitan Water Reclamation District of Greater Chicago, 325 Ill.App.3d 362, 367, 259 Ill.Dec. 68, 757 N.E.2d 931

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Bluebook (online)
902 N.E.2d 1213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-ins-co-v-konstant-architecture-plan-inc-illappct-2009.