RABINO WITZ, Justice.
This appeal involves determination of questions pertaining to statutes of limitations and the conflict of laws. More particularly, we are asked to review the trial court’s holding that Alaska’s two-year statute of limitations, applicable to statutory causes of action, barred appellant’s suit which was based upon a three-year lien statute of the State of Washington. We have concluded that the superior court’s dismissal of appellant’s cause of action was erroneous.
In March of 1966, appellant filed a complaint in the lower court against appellees. In its complaint appellant alleged in part that it was a Washington corporation engaged in the ship repair business but had not, and was not, engaged in business in the State of Alaska. It was further alleged that appellee Seldovia-Port Graham Consolidation, Inc. was a Washington corporation which was authorized to conduct business in the State of Alaska. It was also alleged that within three years past Royal-craft Boat Company, acting as builder and agent for appellee Seldovia,
ordered and requested [appellant] to perform certain work and supply materials; consisting mainly of labor and materials in the installation of certain hydraulic power blocks and related equipment in and upon the [appellee Seldovia’s seven fishing] vessels, then in the process of construction by Royalcraft Boat Company in Seattle, Washington * *.
Appellant then alleged that under the statute of the State of Washington, RCW 60.36.010,
a lien is created against vessels, their tackle, apparel and furniture, for work done and materials furnished in said state at the request of the builder of said vessels pursuant to original construction of the vessels * * Under the statute, such liens continue in force for a period of three (3) years from the time the cause, of action -accrued.
Appellant also asserted that since March of 1963 appellee Seldovia has had possession of the seven fishing vessels in question, and that these vessels have been moved outside the State of Washington to Port Graham, Alaska. Appellant stated that it has made demand upon appellee Seldovia for payment of the $10,636.29 purportedly due and owing for labor and materials furnished to the vessels, but that appellee Seldovia refuses to pay this debt. By way of relief appellant requested that the superior court establish a lien in the amount of $10,636.29 in its favor and that the same be foreclosed against- appellee’s fishing vessels.
Appellee Seldovia filed a motion to dismiss the complaint on the basis that the complaint failed to state a claim upon which relief could he granted.
One of the six grounds urged by appellee Seldovia in support of the motion was that the action was barred by the provisions of AS 09.10.070 of Alaska’s Code of Civil Procedure.
This is one statutory section of an entire chapter which treats the general subject of limitations of actions. AS 09.10.070, where pertinent, provides that:
No person may bring an action * * * upon a liability created by statute, other than a penalty or forfeiture; unless commenced within two years.
After memoranda were filed and oral argument heard, the lower court entered an order dismissing the action on the ground that it was barred by the Alaskan two-year statute of limitations. In ruling on the motion, the trial judge stated in part:
The difficulty with the plaintiff’s position is that the Washington statute gives the plaintiff three years to commence his action, and this action was commenced just before the three years had expired. However, the Alaska statute does not give the plaintiff three years to commence his action. The Alaska statute limits the time to two years, being that particular statute which provides that an action which is founded on a statute is to be commenced within two years’ time.
. In Lillegraven v. Tengs
we had occasion to allude to certain well-established conflict of laws principles. In that casé we said, in part:
In her amended complaint plaintiff states that the operation of defendant’s
vehicle and the rights of the parties were governed by the British Columbia Motor Vehicle Act. This reliance on the foreign statute is in accord with the general rule in conflict of laws — which we apply in this case — whereby the creation of tort liability is governed by the law of the place of the injury.
Similarly, in the case at bar we look to and apply the law of the State of Washington (RCW § 60.36.010) to determine the validity and effect of the lien in regard to appellee Seldovia’s interest in the vessels in question.
In Lillegraven v. Tengs
we also said that:
This rule, however, applies only with relation to the substantive rights of the parties — -it being the traditional approach of "the American courts to distinguish between substance and procedure and holdthat procedural matters are governed by5 the law of ,the forum.
After giving' recognition to the “traditional” distinctive treatment accorded substantive and procedural matters in the field of the conflict of laws, we said the following in regard to limitations of actions:
A statutory limitation on the time for commencing actions is generally considered to be a matter of procedure, and thus governed by the law of the place where the action is brought.
Of particular significance to the resolution of the issues in this appeal is what we said in
Lillegraven
concerning the general conflict rule which views limitations of actions as procedural matters to be determined by the law of the forum. As to this rule we said:
But the opposite result has been reached where the court construes the limitation as being directed so specifically to the right of action as to warrant saying that it qualifies or is made a condition of that right. In such a case, after the time has gone by the right is gone, and no action may then be commenced on it even though the general period of limitation in the jurisdiction where the action is sought to be commenced has not yet expired.
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RABINO WITZ, Justice.
This appeal involves determination of questions pertaining to statutes of limitations and the conflict of laws. More particularly, we are asked to review the trial court’s holding that Alaska’s two-year statute of limitations, applicable to statutory causes of action, barred appellant’s suit which was based upon a three-year lien statute of the State of Washington. We have concluded that the superior court’s dismissal of appellant’s cause of action was erroneous.
In March of 1966, appellant filed a complaint in the lower court against appellees. In its complaint appellant alleged in part that it was a Washington corporation engaged in the ship repair business but had not, and was not, engaged in business in the State of Alaska. It was further alleged that appellee Seldovia-Port Graham Consolidation, Inc. was a Washington corporation which was authorized to conduct business in the State of Alaska. It was also alleged that within three years past Royal-craft Boat Company, acting as builder and agent for appellee Seldovia,
ordered and requested [appellant] to perform certain work and supply materials; consisting mainly of labor and materials in the installation of certain hydraulic power blocks and related equipment in and upon the [appellee Seldovia’s seven fishing] vessels, then in the process of construction by Royalcraft Boat Company in Seattle, Washington * *.
Appellant then alleged that under the statute of the State of Washington, RCW 60.36.010,
a lien is created against vessels, their tackle, apparel and furniture, for work done and materials furnished in said state at the request of the builder of said vessels pursuant to original construction of the vessels * * Under the statute, such liens continue in force for a period of three (3) years from the time the cause, of action -accrued.
Appellant also asserted that since March of 1963 appellee Seldovia has had possession of the seven fishing vessels in question, and that these vessels have been moved outside the State of Washington to Port Graham, Alaska. Appellant stated that it has made demand upon appellee Seldovia for payment of the $10,636.29 purportedly due and owing for labor and materials furnished to the vessels, but that appellee Seldovia refuses to pay this debt. By way of relief appellant requested that the superior court establish a lien in the amount of $10,636.29 in its favor and that the same be foreclosed against- appellee’s fishing vessels.
Appellee Seldovia filed a motion to dismiss the complaint on the basis that the complaint failed to state a claim upon which relief could he granted.
One of the six grounds urged by appellee Seldovia in support of the motion was that the action was barred by the provisions of AS 09.10.070 of Alaska’s Code of Civil Procedure.
This is one statutory section of an entire chapter which treats the general subject of limitations of actions. AS 09.10.070, where pertinent, provides that:
No person may bring an action * * * upon a liability created by statute, other than a penalty or forfeiture; unless commenced within two years.
After memoranda were filed and oral argument heard, the lower court entered an order dismissing the action on the ground that it was barred by the Alaskan two-year statute of limitations. In ruling on the motion, the trial judge stated in part:
The difficulty with the plaintiff’s position is that the Washington statute gives the plaintiff three years to commence his action, and this action was commenced just before the three years had expired. However, the Alaska statute does not give the plaintiff three years to commence his action. The Alaska statute limits the time to two years, being that particular statute which provides that an action which is founded on a statute is to be commenced within two years’ time.
. In Lillegraven v. Tengs
we had occasion to allude to certain well-established conflict of laws principles. In that casé we said, in part:
In her amended complaint plaintiff states that the operation of defendant’s
vehicle and the rights of the parties were governed by the British Columbia Motor Vehicle Act. This reliance on the foreign statute is in accord with the general rule in conflict of laws — which we apply in this case — whereby the creation of tort liability is governed by the law of the place of the injury.
Similarly, in the case at bar we look to and apply the law of the State of Washington (RCW § 60.36.010) to determine the validity and effect of the lien in regard to appellee Seldovia’s interest in the vessels in question.
In Lillegraven v. Tengs
we also said that:
This rule, however, applies only with relation to the substantive rights of the parties — -it being the traditional approach of "the American courts to distinguish between substance and procedure and holdthat procedural matters are governed by5 the law of ,the forum.
After giving' recognition to the “traditional” distinctive treatment accorded substantive and procedural matters in the field of the conflict of laws, we said the following in regard to limitations of actions:
A statutory limitation on the time for commencing actions is generally considered to be a matter of procedure, and thus governed by the law of the place where the action is brought.
Of particular significance to the resolution of the issues in this appeal is what we said in
Lillegraven
concerning the general conflict rule which views limitations of actions as procedural matters to be determined by the law of the forum. As to this rule we said:
But the opposite result has been reached where the court construes the limitation as being directed so specifically to the right of action as to warrant saying that it qualifies or is made a condition of that right. In such a case, after the time has gone by the right is gone, and no action may then be commenced on it even though the general period of limitation in the jurisdiction where the action is sought to be commenced has not yet expired.
■It is this “built-in” limitation exception to the general rule that the forum’s period of limitations governs which appellant relies upon in this appeal.
In short, appellant contends that Washington’s pertinent lien statute, R.CW § 60.36.010, specifically conditioned enforcement of this action to three years and, “Since this limitation qualifies the foreign right, it is a matter of substance and therefore governs the foreign action in Alaska.”
Our initial task is to determine whether •the Washington three-year period can be construed as falling within the ambit of the “built-in” limitation exception we recognized in
LiUegraven?-
RCW § 60.-36.010 provides that:
All steamers, vessels and boats, their tackle, apparel and furniture, are liable — •
* * * * * *
(2) For work done or material furnished in this state for their construction, repair or equipment at the request of their respective owners, charterers, masters, agents, consignees, contractors, subcontractors, or other person or per-
sons having charge in whole or in part of their construction, alteration, 'repair or equipment; and every contractor, builder or person having charge, either in whole or in part, of the construction, alteration, repair or equipment of any steamer, vessel or boat, shall be held to be the agent of the owner for the purposes of RCW 60.36.010 and 60.36.020, and for supplies furnished in this state for their use, at the request of their respective owners, charterers, masters, agents or consignees, and any person having charge, either in whole or in part, of the purchasing of supplies for the use of any such steamer, vessel or boat, shall be held to be the agent of the owner for the purposes of RCW 60.36.010 and 60.36.020.
* ‡ ⅜ ⅜ ⅜ ⅜
(5) * * * Demands for these several causes constitute liens upon all steamers, vessels and boats, and their tackle, apparel and furniture, and have priority in the order of the subdivisions hereinbefore enumerated, and have preference over all other demands;
but such liens continue in force only for a period of three years from the time the cause of action accrued.
(emphasis supplied)
We hold that Washington’s three-year lien limitation is so specifically directed to the lien in question that the limitation qualifies or conditions such right of action.
This brings us to what we consider the crucial issue left for determination in this appeal. As a matter of our rule of conflict of laws we must decide whether the “built-in” Washington three-year limitation should be applied rather than Alaska’s two-year period of limitations pertaining to liabilities created by statute.
The most frequent situation in which the “built-in” exception has found application is where the forum’s period of limitations is longer than that of the lex loci.
The rule in such circumstances is that once the foreign limitation is viewed as substantive, then under the “built-in” exception, it is held controlling and applied in place of the forum’s longer period of limitations.
Here we are faced with the reverse situation, namely, one in which Alaska’s limitations period is shorter than that of the foreign jurisdiction. The conflict of laws precedents are divided over
resolution of this question.
As indicated previously, we hold, under the “built-in” exception, that the three-year period of limitations contained in Washington’s statute is substantive and governs the rights of the parties in the case at bar. In short, we hold that where the foreign limitation qualifies or conditions the right of action we will apply the foreign period of limitations, even though longer than our own period of limitations. In reaching this conclusion we choose to follow the Theroux v. Northern Pac. R. R.
line of authority. There a wrongful death action was brought in a Minnesota federal court upon a cause of action which had accrued in Montana. The action was commenced after the Minnesota two-year limitation had run but within the three-year period provided in the Montana statute. In holding that the Montana statute of limitations controlled, the court said:
It must be accepted, therefore, as the established doctrine, that where a statute confers'a new right, which by the terms of the act is enforceable by suit only within a given period, the period allowed for its enforcement is a, constituent part of the liability intended to be created, and of the right intended to be conferred. The period prescribed for bringing suit in such cases is not like an ordinary statute of limitations, which merely affects the remedy. It follows, of course, that, if the courts of another state refuse to permit the cause of action to be sued upon during a part of the period limited by the foreign law, to that extent they refuse to give effect to the foreign law, and by so doing impair the right intended to be created.
In Lewis v. Reconstruction Fin. Corp.*
the court discussed the divergence of authorities on this question, and in deciding to follow the
Theroux
case said:
However, there is a line of opposing authority which takes the view that as to rights of action of a purely statutory nature, such as the so-called wrongful death statutes, the time thereby prescribed for filing suit operates as a limitation of the liability itself as created by the statute, and not of the remedy alone. It is deemed to be a condition attached to the right to sue. As such, time has been made of the essence of the right, which is lost if the time is disregarded. The liability and the remedy being created by the same statute, limitation of the remedy must be treated as limitation of the right.
We are of the further opinion that adoption of the
Theroux
view is not contrary to any public policy of Alaska and on this particular record will not result 'in injustice to appellees.
In regard "to 1 the public policy considerations involved, it has been said in regard to the
Theroux
view that:
In favor of * * * it may be said that such a special statutory limitation, by hypothesis, affects substance and is therefore
prima facie
inapplicable to the foreign cause of action. Adherence to the limitation contained in the statute creating the plaintiff’s right promotes the uniform enforcement of vested interests and is therefore highly desirable. The cases insisting that the forum must regard its own statute as fixing the upper limit rest upon the dubious assumption that it will outrage the public policy of the forum to give foreign suitors rights which are denied to its own citizens. Such assumption overlooks the fact that in these cases the time limit is by hypothesis a part of the substantive right created, and . that such rights should be disregarded only
upon the most imperative considerations of public policy.
Upon the foregoing we have concluded that the superior court’s dismissal of appellant’s cause of action was erroneous. The superior court order of dismissal is set aside and the case is remanded for further proceedings.