Huebner v. Caldwell & Cook, Inc.

139 Misc. 2d 288, 526 N.Y.S.2d 356, 1988 N.Y. Misc. LEXIS 125
CourtNew York Supreme Court
DecidedMarch 8, 1988
StatusPublished
Cited by4 cases

This text of 139 Misc. 2d 288 (Huebner v. Caldwell & Cook, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huebner v. Caldwell & Cook, Inc., 139 Misc. 2d 288, 526 N.Y.S.2d 356, 1988 N.Y. Misc. LEXIS 125 (N.Y. Super. Ct. 1988).

Opinion

OPINION OF THE COURT

Richard C. Wesley, J.

In the instant matter, the defendants comprise a group of builders who constructed homes with allegedly defective siding systems. Each of the plaintiffs purchased a home directly from one of the defendants. Each plaintiff purports to represent a class of individuals who purchased a home from one of the defendant builders and has similarly damaged siding. No motion for class certification has been made.

The defendants move to dismiss on a number of theories including Statute of Limitations, res judicata law of the case and standing. The instant action represents a continuation of prior suits against these same defendants. The current action has a different posture in that the named plaintiffs here were unnamed members of prior classes.

Specifically, the earlier action against Caldwell and Cook began as a class action represented by an individual named Ware. Ware was subsequently substituted by Butler as the named plaintiff. The Butler action began on March 26, 1981. The named plaintiffs here, Smith and Ascroft, were asserted class members of the Butler class.

In addition, a separate group of homeowners began a class action on February 2, 1982 against Caldwell and Cook. The named representative of that class action was Cicon. The named plaintiffs here, Huebner and Knowles, were asserted members of the previous Cicon class.

An earlier action was commenced against Domus Development on February 2, 1982. The named representative of the earlier class was Falbo. The named representative here, Wachtman, was an asserted member of the Falbo class.

[290]*290A prior class action against Ryan Homes began on February 2, 1982. The named representative of the earlier action was Meisenzahl. The current action against Ryan Homes is represented by Drews. Drews was an asserted member of the Meisenzahl class.

The first question that must be addressed is whether the instant actions are timely. The commodity alleged to be defective is home siding. All of the causes of action brought by the various plaintiffs allege some type of breach of warranty and therefore sound in contract. Actions based on contract law are governed by CPLR 213 (2). This section provides that "an action upon a contractual obligation or liability express or implied,” has a six-year Statute of Limitations. The fact that a six-year Statute of Limitations applies here is not in dispute. However, the parties differ in their application of this statute to the facts presented.

The defendants argue that the Statute of Limitations accrued on the date that each plaintiff accepted the deed for their particular property.

The plaintiffs base their claims on warranties which they deem to be prospective such that the Statute of Limitations did not begin to run until the alleged defect was discovered (citing Mittasch v Seal Lock Burial Vault, 42 AD2d 573 [2d Dept 1973]).

Based on this "discovery” interpretation of the accrual period for the Statute of Limitations, the plaintiffs conclude that they are entitled to the benefit of CPLR 203 (f). Application of CPLR 203 (f) to each class would effectively extend their limitations period two years from the date the breach was or should have been discovered. (CPLR 203 [f].)

As noted, plaintiffs rely on Mittasch v Seal Lock Burial Vault (42 AD2d 573, supra [2d Dept 1973]). Mittasch, however, involved the sale of goods. In Mittasch, the Second Department held: "Where a warranty relates to the quality of the goods at the time of sale, the breach occurs and the cause of action accrues on the date of sale * * * However * * * where a breach of a prospective warranty is concerned, the cause of action accrues when the breach is or should have been discovered”. (Supra, at 574.) In Mittasch, the express warranty related to a casket burial vault. The vault was sold with an assurance of satisfactory service at " 'all times’ ”. (Supra, at 573.)

Given the prospective assurance of the warranty in Mit[291]*291tasch, the court held that the Statute of Limitations did not accrue until discovery of the defect. (Supra, at 574.) Importantly, the court in Mittasch relied on the Uniform Commercial Code § 2-725 (2) which codifies the discovery Statute of Limitations applicable to the sale of goods where future performance is at issue. This section states: "(2) A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. A breach of warranty occurs when tender of delivery is made, except that where a warranty explicitly extends to future performance of the goods and discovery must await the time of such performance the cause of action accrues when the breach is or should have been discovered.”

The instant matter involves the application of a discovery statute to real property and its appurtenances. To date, the UCC provides no codification of a discovery period relating to homes or their components.

CPLR 203 (f) is an innovation in New York jurisprudence. "It will apply most commonly in fraud cases”. (McLaughlin, Practice Commentaries, McKinney’s Cons Laws of NY, Book 7B, CPLR C203:12, at 125.) CPLR 203 (f) operates in tandem with those Statutes of Limitation that provide for accrual of the cause of action on discovery; it does not operate alone to create a new standard of measure.

Case law in this area has construed that an owner’s claim of defective construction against a contractor accrues on the date the construction is completed. (State of New York v Lundin, 91 AD2d 343, 346 [3d Dept 1983], affd 60 NY2d 987; Cabrini Med. Center v Desina, 64 NY2d 1059, 1061 [1985].)

UCC 2-725 (2) has no application to real property or its appurtenances. CPLR 203 (f) has no application because the six-year Statute of Limitations applicable here (CPLR 213) is not itself a discovery statute. The above case law, commentaries and the statute itself demonstrate that the extension provided for by CPLR 203 (f) has no application to the instant actions. The plaintiff’s specific allegation of defective home siding and breach of warranty prevents the application of both UCC 2-725 (2) and CPLR 203 (f).

A review of the facts of the individual causes of action demonstrates that if one applies the six-year Statute of Limitations to the date the plaintiffs acquired the deed to their properties, only plaintiffs Smith and Huebner survive the six-year limitation. All of the other plaintiffs’ causes of action [292]*292expired before the previous class actions were initiated. The Statute of Limitations in Smith and Huebner were tolled by virtue of the fact that they obtained their properties in the late 1970’s and were members of the Butler and Cicon class actions which were commenced in the early 1980’s.

The complaints of plaintiffs Drews, Wachtman, Knowles and Ascroft are therefore dismissed with prejudice as barred by the Statute of Limitations.

The Smith and Huebner claims are affected by their former class membership. To resolve the instant motion to dismiss with regard to these remaining plaintiffs, intriguing questions concerning class actions in general must be analyzed.

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Bluebook (online)
139 Misc. 2d 288, 526 N.Y.S.2d 356, 1988 N.Y. Misc. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huebner-v-caldwell-cook-inc-nysupct-1988.