Pamida, Inc. v. Christenson Building Corporation, Defendant/third Party v. R & Q Trucking, Inc. Maxim Technologies, Inc. Lowell Johnson, Third Party

285 F.3d 701, 2002 U.S. App. LEXIS 6062, 2002 WL 500644
CourtCourt of Appeals for the Third Circuit
DecidedApril 4, 2002
Docket01-1052
StatusPublished
Cited by3 cases

This text of 285 F.3d 701 (Pamida, Inc. v. Christenson Building Corporation, Defendant/third Party v. R & Q Trucking, Inc. Maxim Technologies, Inc. Lowell Johnson, Third Party) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Pamida, Inc. v. Christenson Building Corporation, Defendant/third Party v. R & Q Trucking, Inc. Maxim Technologies, Inc. Lowell Johnson, Third Party, 285 F.3d 701, 2002 U.S. App. LEXIS 6062, 2002 WL 500644 (3d Cir. 2002).

Opinion

LOKEN, Circuit Judge.

In the fall of 1990, Christenson Building Corporation (“CBC”) completed a 42,000 square foot retail store in Roseau, Minnesota, for Pamida, Inc. In May 1999, Pami-da commenced this diversity action alleging that inadequate compaction and the use of improper fill materials had caused the concrete floor slab to settle, causing substantial damage to the store. CBC asserted third-party claims against the construction superintendent, Lowell Johnson, and two subcontractors, R & Q Trucking and Maxim Technologies (as successor in interest to Twin City Testing). The district court 1 granted summary judgment in favor of CBC, concluding that Pamida’s claim is time-barred under the Minnesota statute requiring that actions to recover damages for injuries arising out of defective improvements to real property may not be brought “more than two years after discovery of the injury.” MINN. STAT. § 541.051, subd. 1(a). Pamida appeals, as *703 serting that it did not discover the relevant injury until 1998. We affirm.

I.

The Pamida store opened in November 1990. In the spring of 1991, following a wet snowfall, Pamida’s store manager noticed floor cracks in the north end of the building, about six feet from the exterior wall and extending almost the length of that wall. The cracks worsened, a gap formed between the north wall and the bottom of the floor, and storage racks along the north wall buckled. Twin City Testing investigated and reported that the exterior backfill along the north wall had settled and become saturated, trapping water that percolated through the foundation and caused the floor slab along the north wall to settle. Twin City Testing recommended replacing and re-sloping the exterior backfill and using “mudjaeking” 2 to return the interior floor slab to the correct grade. Weleske Improvements performed the mudjaeking at a cost of $6,676. In June 1992, Pamida demanded that CBC reimburse Pamida for the 1991 repairs. When CBC did not pay, Pamida threatened litigation but did not sue because of the small amount at issue.

In the spring of 1996, Pamida found evidence of new settling on the south side of the store, near the main entryway. Weleske Improvements investigated and found interior settling around the main entryway and adjacent restrooms, cracks in the front sidewalk two to ten feet from the south wall, areas where the front sidewalk tilted toward the building, and a dip in the store’s parking lot a few feet south of the sidewalk. Weleske proposed mud-jacking for portions of the concrete floor slab near the south wall and for the front sidewalk. Weleske submitted a written proposal for $8,570, but the work was not performed.

In 1997 and 1998, the interior settling problems became more severe. Settling around the main entryway worsened, new settling was observed along the north wall, and settling appeared along the east and west walls and around interior pillars throughout the store. In the “sign room,” west of the entryway on the south wall, a Pamida witness testified “the floor just ... broke off, dropped,” almost overnight. Weleske Improvements again surveyed the damage. This time, it drilled a core hole in the floor slab to investigate and discovered that the interior fill contained black dirt and sod, which can decompose and cause settling. After additional testing confirmed the use of inappropriate fill, Pa-mida spent over $500,000 to repair damage to the floor, foundation, walls, and plumbing system.

On May 28, 1999, Pamida filed this action. The district court granted summary judgment for CBC, concluding that Pamida’s claims are time-barred because it discovered the injury in 1991 and in 1996. We review the grant of summary judgment de novo. Treanor v. MCI Telecommunications Corp., 200 F.3d 570, 573 (8th Cir.2000).

II.

The statute of limitations for actions based on improvements to real property is found in § 541.051 of the Minnesota Statutes. As relevant here, the statute bars actions commenced more than two years after discovery of the problem. Prior to 1988, § 541.051, subd. 1, provided that no damage action “arising out of the defective and unsafe condition of an improvement to *704 real property ... shall be brought ... more than two years after discovery thereof” (emphasis added). In Wittmer v. Ruegemer, 419 N.W.2d 493, 496 (Minn.1988), the Supreme Court of Minnesota held that the two-year limitations period began to run upon discovery “of the defective and unsafe condition causing injury or damage.” The Minnesota Legislature promptly amended § 541.051, subd. 1, to provide in relevant part:

(a) Except where fraud is involved, no action ... to recover damages for any injury to property, real or personal ... arising out of the defective and unsafe condition of an improvement to real property ... shall be brought ... more than two years after discovery of the injury ....
(b) For purposes of paragraph (a), a cause of action accrues upon discovery of the injury ....

(Emphasis added.) In Willmar v. Short-Elliott-Hendrickson, 475 N.W.2d 73, 76-77 (Minn.1991), the Supreme Court of Minnesota held that this amendment could not be applied to pending cases because it had “significantly altered the statute of limitations” and “effectively overruled Wittmer by establishing the discovery of an injury, rather than a defective condition, as the point at which the limitation period begins to run.” Accord Hyland Hill North Condo. Ass’n, Inc. v. Hyland Hill Co., 549 N.W.2d 617, 621 (Minn.), cert denied, 519 U.S. 1041, 117 S.Ct. 610, 136 L.Ed.2d 535 (1996).

The issue, then, is whether Pamida discovered the relevant injury prior to May 28, 1997, two years before it commenced this action. That fact issue is frequently — but not always — inappropriate for summary judgment resolution. Compare Lake City Apartments v. Lund-Martin Co. I, 417 N.W.2d 704, 707 (Minn.App.1988), with Metropolitan Life Ins. Co. v. M.A. Mortenson Co., 545 N.W.2d 394, 398 (Minn.App.1996). Here, it is undisputed that the concrete floor slab settled near the north wall in 1991 and near the south wall in 1996, causing Pamida “injury” on both occasions.

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285 F.3d 701, 2002 U.S. App. LEXIS 6062, 2002 WL 500644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pamida-inc-v-christenson-building-corporation-defendantthird-party-v-ca3-2002.