Lands v. Lull Intern., Inc.

963 So. 2d 626, 2007 WL 625836
CourtSupreme Court of Alabama
DecidedMarch 2, 2007
Docket1051278
StatusPublished
Cited by5 cases

This text of 963 So. 2d 626 (Lands v. Lull Intern., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lands v. Lull Intern., Inc., 963 So. 2d 626, 2007 WL 625836 (Ala. 2007).

Opinion

963 So.2d 626 (2007)

Harold Gene LANDS and Kathy Lands
v.
LULL INTERNATIONAL, INC., n/k/a Trak International, Inc.

1051278.

Supreme Court of Alabama.

March 2, 2007.

*627 J. Douglas Fields, Jr., of Fields Law Firm, L.L.C., Birmingham, for appellants.

H.L. Ferguson, Jr., and Steven R. Colclough of Ferguson, Frost & Dodson, L.L.P., Birmingham, for appellee.

STUART, Justice.

Harold Gene Lands and Kathy Lands, the plaintiffs in an action against Lull International, Inc., n/k/a Trak International, Inc. (hereinafter referred to as "Lull"), and other defendants, appeal from a summary judgment entered in favor of Lull, arguing that the trial court erred in holding that their breach-of-warranty claim was barred by the statute of limitations in § 7-2-725, Ala.Code 1975. We affirm.

I.

On September 27, 1996, Rental Services Corporation ("RSC") ordered from Lull, a manufacturer of heavy machinery, a "6K-37 Highlift," a telescoping forklift. Lull delivered the 6K-37 forklift to RSC on October 25, 1996, and RSC added the 6K-37 forklift to its inventory of rental equipment and made it available for rent to contractors and other interested parties.

On approximately November 13, 2000, RSC rented the 6K-37 forklift to Michael Hall, a general contractor on a residential construction project in DeKalb County. On November 30, 2000, two workers on that construction project, one of whom was Harold Lands, decided to use the forklift element of the 6K-37 forklift as a platform on which to stand while installing shutters on the upper floor of the residence being constructed.[1] While Harold Lands was on the platform approximately 20 feet above the ground, the other worker started the engine on the 6K-37 forklift, causing it to "jerk." Lands was thrown to the ground; he broke his left leg and right heel in the fall.

On November 25, 2002, Harold Lands and his wife Kathy Lands sued RSC, Michael Hall, and fictitiously named parties, alleging negligence, negligent failure to train, and premises liability.[2] On April 23, 2004, the Landses amended their complaint to assert a breach-of-warranty claim against Lull, alleging that the accident was caused by a defect in the design of the 6K-37 forklift. In its answer, Lull asserted that the Landses' breach-of-warranty claim against it was barred by the statute of limitations; on December 19, 2005, Lull moved for a summary judgment on that basis, arguing that § 7-2-725, Ala.Code 1975, barred the Landses' breach-of-warranty claim. Section 7-2-725 provides, in relevant part:

"(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has *628 accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it.
"(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 of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered; however, a cause of action for damages for injury to the person in the case of consumer goods shall accrue when the injury occurs."

Lull accompanied its motion with evidence establishing that the 6K-37 forklift was delivered to RSC on October 25, 1996; therefore, Lull argued, under the clear language of § 7-2-725, the statute of limitations for any breach-of-warranty claim expired four years later on October 25, 2000 — approximately 1 month before Harold Lands was injured, 25 months before he and his wife filed this action, and 42 months before they amended their complaint to assert a claim against Lull.

The Landses opposed Lull's motion, arguing that the four-year statute of limitations did not begin to run until August 22, 2002, when Lull issued a service bulletin identifying the design defect in the 6K-37 forklift that the Landses allege caused Harold Lands's injuries. In support of their argument, the Landses relied on the exception in § 7-2-725(2), which states that "where a warranty explicitly extends to future performance of the goods and discovery of the breach must await the time of such performance the cause of action accrues when the breach is or should have been discovered. . . ."[3] The Landses argued that the service bulletin extended the warranty on the 6K-37 forklift until January 31, 2003, inasmuch as, in that bulletin, Lull stated that it would fund the cost of repairs "to all units as defined in this letter whether in or out of warranty" so long as the repairs were completed by January 31, 2003. Accordingly, the Landses argue that their cause of action did not accrue and the statute of limitations did not begin to run until August 22, 2002 — the date the service bulletin was issued and the first date they claim Lull's alleged breach of warranty could have been discovered. Therefore, they argue, their April 23, 2004, claim against Lull was timely.

On April 3, 2006, the trial court held a hearing on Lull's summary-judgment motion, and, on April 11, 2006, the court granted the motion. The trial court thereafter certified its summary judgment for Lull as final pursuant to Rule 54(b), Ala. R. Civ. P. The Landses appeal.

II.

Lull's motion for a summary judgment was based on the statute of limitations, an affirmative defense identified in Rule 8(c), Ala. R. Civ. P. In Board of School Commissioners of Mobile County v. Architects Group, Inc., 752 So.2d 489, 490-91 (Ala. 1999), this Court stated:

"When a defendant bases its motion for a summary judgment on an affirmative *629 defense, this Court applies the following standard of review:
"`"When there is no genuine issue of material fact as to any element of an affirmative defense, . . . and it is shown that the defendant is entitled to a judgment as a matter of law, summary judgment is proper. If there is a genuine issue of material fact as to any element of the affirmative defense, summary judgment is inappropriate. Rule 56(c), Ala. R. Civ. P. In determining whether there is a genuine issue of material fact as to each element of an affirmative defense, this Court must review the record in a light most favorable to the plaintiff (the nonmoving party) and must resolve all reasonable doubts against the defendant (the movant)."'
"Wal-Mart Stores, Inc. v. Smitherman, 743 So.2d 442, 444 (Ala.1999) (quoting Bechtel v. Crown Cent. Petroleum Corp., 495 So.2d 1052, 1053 (Ala.1986))."

The burden is therefore on Lull to demonstrate that there is no genuine issue of material fact as to any element of its statute-of-limitations defense.

III.

Lull accompanied its motion for summary judgment with an invoice and an engine-warranty registration form indicating that the 6K-37 forklift was delivered to RSC on October 25, 1996. Therefore, Lull argues, pursuant to the clear language of § 7-2-725, the statute of limitations for any breach-of-warranty claim expired four years later on October 25, 2000, before Harold Lands was even injured.

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963 So. 2d 626, 2007 WL 625836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lands-v-lull-intern-inc-ala-2007.