HYLAND HILL NO. CONDO ASS'N v. Hyland

538 N.W.2d 479
CourtCourt of Appeals of Minnesota
DecidedNovember 30, 1995
DocketC7-94-2564, C8-94-2573
StatusPublished

This text of 538 N.W.2d 479 (HYLAND HILL NO. CONDO ASS'N v. Hyland) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HYLAND HILL NO. CONDO ASS'N v. Hyland, 538 N.W.2d 479 (Mich. Ct. App. 1995).

Opinion

538 N.W.2d 479 (1995)

HYLAND HILL NORTH CONDOMINIUM ASSOCIATION, INC., Appellant (C7-94-2564), Respondent (C8-94-2573), and
St. Paul Fire and Marine Insurance Company, Intervenor,
v.
HYLAND HILL CO., et al., Respondents (C7-94-2564), Appellants (C8-94-2573),
The James Michael Seed Trust, et al., Defendants (C8-94-2573), and
Berwald Roofing, Co., Inc., Respondent (C8-94-2573).

Nos. C7-94-2564, C8-94-2573.

Court of Appeals of Minnesota.

October 3, 1995.
Review Granted November 30, 1995.

*481 John R. Dorgan, Fredrick R. Krietzman, Frommelt & Eide, Ltd., Minneapolis, for Hyland Hill North Condominium Association, Inc. and Berwald Roofing Co., Inc.

Einar E. Hanson, Strobel & Hanson, Red Wing, John D. Hagen, Jr., Minneapolis, for Hyland Hill Co.

Considered and decided by RANDALL, P.J., and NORTON and DAVIES, JJ.

OPINION

DAVIES, Judge.

A condominium association sued a condominium developer/declarant (and several associated defendants) for damages based on breach of warranties, breach of fiduciary duties, breach of contract, and negligence, claiming, among other things, construction and design defects. After a jury verdict for the association, the trial court held that a two-year statute of limitations barred the claims against all defendants for defective construction and design. We reverse as to construction and design defects, but affirm the judgment in other respects.

FACTS

Appellant Hyland Hill North Condominium Association, Inc. (Association), is the governing body of Hyland Hill North Condominium. The developer and "declarant" of the condominium is respondent Hyland Hill Co.[1] Hyland Hill Co. consists of two partners, Melvin *482 C. Gittleman and Donald W. Anderson. Gittleman and Anderson are also officers and directors of respondent Gittleman Management Corporation, the managing agent for the condominium from October 1985 through August 1990.

Prior to mid-1989, sporadic water leaks occurred in various areas of the condominium's roof. Initially, the Association addressed this problem by relying on Gittleman Management Corporation to arrange for roof repairs. But in late 1989, after continual repair efforts proved futile, the Association hired a roof specialist (INSPEC) to investigate. INSPEC first informed the Association that the roof was in need of a $20,000 repair project. Then, in the spring of 1990, after more extensive water leakage, an infrared moisture scan of the roof by INSPEC revealed that it was in much worse condition than previously thought. INSPEC changed its recommendation from mere repair to total roof replacement. The Association replaced the roof in the fall of 1990 at a cost of approximately $350,000, which included the costs incurred investigating the problem. In November 1990, the Association brought this suit against declarant Hyland Hill Co., the Gittleman Management Corporation, Berwald Roofing Co., and others.

At trial of the warranty and other claims, the jury awarded the Association $350,172 for damages resulting from defective construction and design of the roof, $138,287 for defects in masonry facade, patios, and sun decks, $4,802 in maintenance assessments, and $15,000 for reserve account contributions. The trial court, however, ruled that the two-year statute of limitations in Minn. Stat. § 541.051, subd. 1(a), as a matter of law barred all claims of roof and non-roof defects. The trial court rejected the Association's assertion that the applicable statute of limitations was the six-year statute contained in the Uniform Condominium Act, Minn.Stat. § 515A.4-114(a).

The court, granting JNOV, ruled that the two-year statute also barred a cross-claim asserted by Hyland Hill Co. against respondent Berwald Roofing Co., which had built the roof initially. These cross-appeals followed.

ISSUES

I. Which statute of limitations, Minn.Stat. § 541.051, subd. 1(a), or Minn.Stat. § 515A.4-114(a), applies to the Association's claims for breach of warranties under the Uniform Condominium Act?

II. When did the applicable statute of limitations commence to run?

a. What does the six-year statute provide?
b. For the two-year statute, when was the injury discovered?

III. Was the leaking roof an "unsafe" condition?

IV. Did the trial court err in failing to distinguish between the Association's roof and non-roof injuries?

V. Other issues.

a. How shall the special verdict be interpreted?
b. Were expense assessments recoverable?
c. Were replacement reserve contributions recoverable?
d. May appellant raise new issues?

ANALYSIS

I.

Applicable Statute of Limitations

In 1980, the Minnesota legislature enacted the Uniform Condominium Act, Minn. Stat. ch. 515A. It applies to all condominiums created after August 1, 1980. Minn. Stat. § 515A.1-102(b). Sections 515A.4-111 and 515A.4-112 of the Act provide for warranties to purchasers by declarants, including an implied warranty that "a unit and the common elements in the condominium are structurally suitable for the ordinary uses of real estate of its type." Minn.Stat. § 515A.4-112(b). The statute of limitations for actions based on this warranty provides:

A judicial proceeding for breach of any obligation arising under section 515A.4-111 or 515A.4-112 must be commenced within six years after the cause of action accrues * * *. *483 Minn.Stat. § 515A.4-114(a). Notwithstanding this six-year limitations period and the jury's verdict that Hyland Hill Co. had breached both express and implied warranties under the Act, the trial court granted Berwald Roofing Co.'s motion for JNOV, and concluded that the two-year limitations period under Minn.Stat. § 541.051 also barred the Association's defective design and construction claims.

It is well established that between two statutes, the more specific one prevails. Minn.Stat. § 645.26, subd. 1. The two-year statute addresses damages based on services or construction to improve real property generally. Minn.Stat. § 541.051. The Uniform Condominium Act's six-year limitations period applies explicitly to claims under sections 515A.4-111 and 515A.4-112, the provisions under which the Association brought its claims. Therefore, the six-year statute is more specific to the claims made here and, under Minn.Stat. § 645.26, subd. 1, it applies.

To support application of the two-year statute, Hyland Hill Co. cites Greenbrier Village Condominium Two Ass'n v. Keller Inv., 409 N.W.2d 519 (Minn.App.1987). Minnesota's original Condominium Act, Minn.Stat. ch. 515, which was applicable in Greenbrier, does not contain its own statute of limitations. Since the six-year statute of limitations applies only to condominiums created after August 1, 1980, it was not available to trump the two-year statute applied in Greenbrier. Minn.Stat. § 515A.1-102(b). Thus, Greenbrier is not relevant on this point and the Uniform Condominium Act's six-year statute of limitations governs the Association's claims for breach of warranties under the Act. (As discussed later, we do find Greenbrier relevant in other respects.)

II.

Dates the Alternative Statutes of Limitations Began to Run

A.

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Hyland Hill North Condominium Ass'n v. Hyland Hill Co.
538 N.W.2d 479 (Court of Appeals of Minnesota, 1995)

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538 N.W.2d 479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyland-hill-no-condo-assn-v-hyland-minnctapp-1995.