Gustine Uniontown Associates, Ltd. v. Anthony Crane Rental, Inc.

842 A.2d 334, 577 Pa. 14
CourtSupreme Court of Pennsylvania
DecidedFebruary 17, 2004
Docket37 WAP 2002, 38 WAP 2002, 39 WAP 2002, 40 WAP 2002, 41 WAP 2002, 42 WAP 2002
StatusPublished
Cited by44 cases

This text of 842 A.2d 334 (Gustine Uniontown Associates, Ltd. v. Anthony Crane Rental, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gustine Uniontown Associates, Ltd. v. Anthony Crane Rental, Inc., 842 A.2d 334, 577 Pa. 14 (Pa. 2004).

Opinion

OPINION

Justice CASTILLE.

The issue before this Court, which is one of first impression, is whether claims arising out of a written construction contract are subject to the Judicial Code’s residual, or “catch-all,” six-year period of limitations, see 42 Pa.C.S. § 5527, or the more specific four-year limitations period which applies to actions “upon a contract, obligation or liability founded upon a writing----” See id. § 5525(a)(8). The lower courts here split on the issue: the trial court determined that the construction contract claims are subject to the four-year period of limitations, but the Superior Court reversed, holding that such claims are subject to the six-year limitation. For the reasons set forth below, we find that the appropriate limitations period is the four-year period provided in Section 5525(a)(8). Accordingly, we vacate the judgment of the Superior Court and remand to that court for proceedings consistent with this Opinion.

Appellee Gustine Uniontown Associates (“Gustine”) owns the Cherry Tree Square Mall (the “Mall”), a retail shopping center in Fayette County, Pennsylvania. The Mall covers approximately thirty acres and contains various stores and shops. Construction of the Mall began in May 1992 and was substantially completed in September 1993. The Mall is built on land above a former coal mine. In 1991, before construction began, a soil subsurface investigation was completed and Gustine was advised of the existence of carbonaceous shale *20 layers in the ground, which often contain sulfide materials that may expand when exposed to moisture and oxygen. Gustine was further advised that structures built on carbonaceous shale are subject to possible damage in the form of heaving, buckling, and cracking due to the movement of the earth below the foundation.

Gustine contracted with appellant Architectural Services Group, Inc. (ASG) to design the site, to oversee the progress and the quality of the construction process, and to guard Gustine against construction defects or deficiencies in the work. Article 9.3 of the contract between ASG and Gustine provided that:

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 for acts or failures to act occurring prior to Substantial Completion, or the date of issuance of the final Certificate for Payment for acts or failures to act occurring after Substantial Completion.

Contract, Art. 9.3. On September 8, 1993, ASG issued certificates declaring that each structure in the Mall had been substantially completed on a specific date between June and September of 1993.

Less than two years later, in April 1995, floor slabs in the Mall began to buckle or heave and cracks appeared in walls, sidewalks, and parking areas. By early 1998, movement or heaving had occurred in floor slabs of all buildings, sidewalks, and parking lots. Gustine employed several of the appellants to investigate the cause of the damage and to assess possible remedial actions. Thereafter, Gustine incurred substantial expenses to remediate the structural damage.

On July 30, 1999, Gustine initiated this action by writ of summons. On January 27, 2000, Gustine filed a complaint consisting of 357 paragraphs, naming 13 defendants and including 30 separate counts for breach of contract, breach of implied warranty, breach of duty to negotiate in good faith *21 and fair dealing, fraudulent misrepresentation, concealment, and professional negligence. 1 The complaint alleged that Gus-tine incurred remediation costs in excess of one million dollars as well as lost profits.

Appellants filed preliminary objections asserting that Gus-tine’s breach of contract claims were barred by a four-year statute of limitations and that its fraud and negligence claims were barred by a two-year statute of limitations. Respecting the contract claims, appellants cited Section 5525(a)(8) of the Judicial Code, which provided as follows:

(a) General Rule. Except as provided for in subsection (b), the following actions and proceedings must be commenced within four years:
(8) An action upon a contract, obligation or liability founded upon a writing not specified in paragraph (7), under seal or otherwise, except an action subject to another limitation specified in this subchapter.

42 Pa.C.S. § 5525(a)(8). 2 Gustine argued that the action was governed by the residual six-year statute of limitations set forth in Section 5527 of the Code, which applies when no other limitations period controls. Section 5527 provides that:

Any civil action or proceeding which is neither subject to another limitation specified in this subchapter nor excluded from the application of a period of limitation by section 5531 *22 (relating to no limitation) must be commenced within six years.

Id. § 5527.

The trial court, per the Honorable R. Stanton Wettick, Jr., decided the preliminary objections on July 18, 2000, issuing both a published opinion on the statute of limitations questions and an unpublished memorandum disposing of the remaining preliminary objections. In the opinion, Judge Wettick concluded that, under the plain language of the Judicial Code, since the breach of contract claims arose from written agreements, a four-year period governed:

The language of section 5525[ (a) ](8) could not be clearer: a single limitation period of four years governs actions upon any written contracts unless there is another limitation period specified in the subchapter. Furthermore, construction contracts involving real estate are not esoteric transactions that the legislature might have overlooked. Consequently, since no other subsection refers to written contracts for the construction of real estate, the legislature intended for these contracts to be governed by the four-year limitation period of section 5525.

Gustine Uniontown Associates Ltd. v. Anthony Crane Rental Inc., 49 Pa. D. & C. 4th 233, 238-39 (Allegheny Co.2000). The court then entered an order directing that:

(1) the six-year limitations period of 42 Pa.C.S. § 5527 does not govern any of plaintiffs causes of action;
(2) plaintiffs actions based on a contract, including a contract implied in law, are governed by a four-year limitations period;
(3) plaintiffs tort actions are covered by the two-year limitation period of 42 Pa.C.S. § 5524; and
(4) defendants’ requests [to] dismiss claims based on the statute of limitations are overruled because at this stage of the proceedings [the court] cannot determine whether the limitations periods were tolled through the discovery rule and/or the repair doctrine.

*23

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Bluebook (online)
842 A.2d 334, 577 Pa. 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gustine-uniontown-associates-ltd-v-anthony-crane-rental-inc-pa-2004.