New Riegel Local School Dist. Bd. of Edn. v. Buehrer Group Architecture & Eng., Inc. (Slip Opinion)

2019 Ohio 2851
CourtOhio Supreme Court
DecidedJuly 17, 2019
Docket2018-0189 and 2018-0213
StatusPublished
Cited by44 cases

This text of 2019 Ohio 2851 (New Riegel Local School Dist. Bd. of Edn. v. Buehrer Group Architecture & Eng., Inc. (Slip Opinion)) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Riegel Local School Dist. Bd. of Edn. v. Buehrer Group Architecture & Eng., Inc. (Slip Opinion), 2019 Ohio 2851 (Ohio 2019).

Opinion

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as New Riegel Local School Dist. Bd. of Edn. v. Buehrer Group Architecture & Eng., Inc., Slip Opinion No. 2019-Ohio-2851.]

NOTICE This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.

SLIP OPINION NO. 2019-OHIO-2851 NEW RIEGEL LOCAL SCHOOL DISTRICT BOARD OF EDUCATION, APPELLEE, v. BUEHRER GROUP ARCHITECTURE & ENGINEERING, INC., ET AL., APPELLANTS. [Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as New Riegel Local School Dist. Bd. of Edn. v. Buehrer Group Architecture & Eng., Inc., Slip Opinion No. 2019-Ohio-2851.] Contracts—Construction statute of repose, R.C. 2305.131—Court of appeals erred in reversing trial court’s dismissal of school district’s breach-of-contract claims as time-barred and in applying stare decisis to hold that current version of R.C. 2305.131 applies only to tort claims—Construction statute of repose is not limited to tort actions but also applies to contract actions that meet requirements of R.C. 2305.131—Court of appeals’ judgments reversed and causes remanded. (Nos. 2018-0189 and 2018-0213—Submitted March 5, 2019—Decided July 17, 2019.) APPEALS from the Court of Appeals for Seneca County, No. 13-17-04, 2017- Ohio-8522, and Nos. 13-17-03 and 13-17-06, 2017-Ohio-8521. SUPREME COURT OF OHIO

_____________________ FRENCH, J. {¶ 1} These consolidated appeals ask whether Ohio’s construction statute of repose, R.C. 2305.131, applies to actions sounding in contract as well as to actions sounding in tort. We hold that R.C. 2305.131, as enacted in Am.Sub.S.B. No. 80, 150 Ohio Laws, Part V, 7915, 7937-7938, applies to any cause of action, whether sounding in tort or contract, so long as the cause of action meets the requirements of the statute. Facts and Procedural Background {¶ 2} These appeals arise from the design and construction of a public- school building (the “Project”) for the New Riegel Local School District. The Project, which was substantially completed and approved for occupancy in December 2002, was built as part of the Ohio Classroom Facilities Assistance Program, administered by the Ohio School Facilities Commission. Appellee, the New Riegel Local School District Board of Education (“New Riegel”), alleges that condensation, moisture intrusion, and other deficiencies exist in various areas of the Project, as a result of improper design and construction. {¶ 3} The Buehrer Group Architecture & Engineering contracted with New Riegel to provide design services for the Project; New Riegel alleges that the subsequently incorporated Buehrer Group Architecture & Engineering, Inc. (collectively, with the unincorporated entity, “the Buehrer Group”), adopted, benefited from, and provided services for New Riegel on the contract. Studer- Obringer, Inc., and Charles Construction Services, Inc., served as the general-trades contractor and the roofing contractor, respectively, on the Project, pursuant to contracts with the state; New Riegel was an intended beneficiary of those contracts. In January 2015, New Riegel served the Buehrer Group, Studer-Obringer, and Charles Construction with notices of claims regarding alleged defects in the school building. The Buehrer Group, Charles Construction, Studer-Obringer, and Ohio

2 January Term, 2019

Farmers Insurance Company—the surety for Studer-Obringer and Charles Construction—are appellants here. {¶ 4} New Riegel filed this action in April 2015.1 New Riegel’s second amended complaint asserts claims against the Buehrer Group, the Estate of Huber H. Buehrer, Studer-Obringer, Charles Construction, American Buildings Company d.b.a. Architectural Metal Systems, and Ohio Farmers. As relevant here, New Riegel alleges claims for breach of contract against the Buehrer Group, Studer- Obringer, and Charles Construction; a claim for breach of express warranty against Charles Construction; and claims against Ohio Farmers on its surety bonds. It alleges that the Buehrer Group, Studer-Obringer, and Charles Construction “failed to provide [services or work] in conformance to the terms of” their contracts and that Studer-Obringer and Charles Construction failed to conform “with the requisite standard of care to perform in a workmanlike manner.” New Riegel alleges that as a result, it has incurred damages, including damages for “physical damage to property.” {¶ 5} In their answers and/or motions for judgment on the pleadings, appellants argued that the statute of repose in R.C. 2305.131 barred New Riegel’s claims because substantial completion of the Project occurred more than ten years before New Riegel filed its claims. The trial court granted appellants’ motions for judgment on the pleadings and dismissed as time-barred New Riegel’s breach-of- contract claims against the Buehrer Group, Studer-Obringer, and Charles Construction. The trial court also dismissed New Riegel’s claim against Ohio Farmers as surety for Studer-Obringer. Pursuant to Civ.R. 54(B), the trial court certified that there was no just reason for delay and that the judgment entries were final, appealable orders.

1. The original complaint named the Ohio School Facilities Commission as an involuntary plaintiff, but New Riegel dropped the Ohio School Facilities Commission as an involuntary plaintiff when it filed its first amended complaint.

3 SUPREME COURT OF OHIO

{¶ 6} The Third District Court of Appeals reversed the trial court’s judgment in two opinions containing nearly identical language. Although it stated that R.C. 2305.131, on its face, appeared to bar New Riegel’s breach-of-contract claims, the Third District determined that it was required to follow this court’s decision in Kocisko v. Charles Shutrump & Sons Co., 21 Ohio St.3d 98, 488 N.E.2d 171 (1986), and to hold that R.C. 2305.131 does not apply to claims for breach of contract. 2017-Ohio-8521, ¶ 11; 2017-Ohio-8522, ¶ 8. Having determined that R.C. 2305.131 does not apply to breach-of-contract claims, the Third District did not address New Riegel’s assignment of error arguing that R.C. 2305.131 does not bar its claims against Studer-Obringer and Charles Construction, because the state, with which those entities had contracted, is not subject to statutes of repose. 2017- Ohio-8521 at ¶ 14. {¶ 7} This court accepted and consolidated appellants’ discretionary appeals. 152 Ohio St.3d 1478, 2018-Ohio-1990, 98 N.E.3d 293. Although phrased differently by different appellants, the accepted propositions of law essentially ask this court to hold (1) that R.C. 2305.131’s statute of repose applies to both tort and contract actions and (2) that stare decisis should not be applied when, as here, the General Assembly has repealed and replaced the statute construed in the precedent. Standard of Review {¶ 8} The trial court entered judgment on the pleadings for appellants pursuant to Civ.R. 12(C). Dismissal is appropriate under Civ.R. 12(C) when a court construes as true the material allegations in the complaint, along with all reasonable inferences to be drawn therefrom, and finds, beyond doubt, that the plaintiff can prove no set of facts that would entitle him to relief. State ex rel. Midwest Pride IV, Inc. v. Pontious, 75 Ohio St.3d 565, 570, 664 N.E.2d 931 (1996). Appellate review of a judgment on the pleadings involves only questions of law and is therefore de novo. Rayess v. Educational Comm. for Foreign Med. Graduates, 134 Ohio St.3d 509, 2012-Ohio-5676, 983 N.E.2d 1267, ¶ 18. Similarly, questions of

4 January Term, 2019

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Bluebook (online)
2019 Ohio 2851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-riegel-local-school-dist-bd-of-edn-v-buehrer-group-architecture-ohio-2019.