Perkins v. Northeastern Log Homes

808 S.W.2d 809, 1991 Ky. LEXIS 44, 1991 WL 74146
CourtKentucky Supreme Court
DecidedMay 9, 1991
Docket90-SC-738-CL
StatusPublished
Cited by76 cases

This text of 808 S.W.2d 809 (Perkins v. Northeastern Log Homes) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkins v. Northeastern Log Homes, 808 S.W.2d 809, 1991 Ky. LEXIS 44, 1991 WL 74146 (Ky. 1991).

Opinion

LEIBSON, Justice.

The U.S. District Court for the Western District of Kentucky has certified to the Kentucky Supreme Court the following Questions of Law at issue in the above-styled case:

“(1) whether KRS 413.135 violates Kentucky Constitution §§ 14, 54, 59, and/or 241; and
(2) whether KRS 413.135 applies to latent disease cases and, if so, whether the statute of limitations commences from the date the plaintiff knows or should have discovered the injury or disease.”

For reasons that we will address, our answer to the first question is that the statute in question violates the Kentucky Constitution, and our answer to the second question is that KRS 413.135 does not nullify the “discovery rule” which applies “to tort actions for injury from latent disease caused by exposure to a harmful substance.” Louisville Trust Co. v. Johns-Manville Products, Ky., 580 S.W.2d 497, 501 (1979).

The Certification from the U.S. District Court states the following facts:

“Plaintiffs Eloise and Dennis Perkins (the Perkins) filed their product liability action against defendants Northeastern Log Homes, Inc. (Northeastern), Roberts Consolidated Industries, Inc. (Roberts), and DAP, Inc. (DAP), on June 16, 1989. Defendants removed the case [from Jefferson Circuit Court to federal court] on July 10, 1989.
Plaintiffs purchased a log home kit from Northeastern on June 24, 1977. Northeastern manufactured the construction components of the log home. Roberts and DAP designed and manufactured “Woodlife,” a product used to preserve the log home. The Perkins finished constructing their home in November 1978 and they lived in it until June 1989.
Eloise Perkins discovered she had non-Hodgkin’s lymphoma around March 31, *811 1986. She alleges that her illness developed from continued exposure to Pentaehlorophenol, which “Woodlife” contained.”

Appellants’ Complaint is an exhibit to the Brief filed by Roberts and DAP (hereinafter “Roberts”). It identifies Northeastern’s product as a “Log Home Kit” which the appellants purchased and then assembled and constructed into a log home which they located in Floyds Knob, Indiana. It alleges: “[bjeginning with the construction period in approximately August, 1977 through June 9, 1989, Plaintiffs were exposed in their log home, built from the Northeastern kit, to toxic concentrations of the chemical, technical-grade Pentachloro-phenol, which was an active ingredient in the ‘Woodlife’ ...”; the “log home is unfit for human habitation ... as a result of said toxic contamination”; and a cause of action for strict liability “by reason of defects in the product ... rendering the product unreasonably dangerous,” and, separately, for “negligent failure to design, negligent failure to properly manufacture and assemble the product ..., failure to adequately warn and instruct concerning the use and failure to adequately test and inspect the product.”

Appellants have supplemented their Brief with affidavits from a medical expert and their attorney, stating in substance that Eloise Perkins suffers from a non-Hodgkins’ lymphoma, a cancer caused by exposure to Pentachlorophenol, with the “appearance of symptoms ... in March of 1986,” that her first notice of any possible connection between her cancer and the log home kit in question occurred in February 1989, the first medical confirmation occurred in March 1989, and the suit was filed on June 16, 1989. We accept these claims along with the facts stated in the Certification as a factual premise in addressing the underlying legal issues.

I. DOES KRS 413.135 VIOLATE KENTUCKY CONSTITUTION §§ 14, 54, 59 AND/OR 241

KRS 413.135 is the latest edition of a statute first enacted in 1964 and 1966, 1 to protect builders and others engaged in the “design, planning, supervision, inspection, or construction of any improvement to real property” from suit for damages, personal injury or wrongful death, five years after the substantial completion of such improvement. The statute was referred to as the builders, architects and engineers “no action” statute and is mislabeled “an act relating to limitations of actions,” because its purpose is not to signal the end of the period for filing a cause of action that has already accrued, but to cut off the period of exposure to liability for a construction defect where no cause of action has yet accrued because the damage, injury or death caused by the deficiency first occurred more than five years after substantial completion of construction. It is not a statute of limitations but a statute of repose because it extinguishes the claim before it exists. For that reason, the 1964/66 edition of the statute of repose for persons in the construction industry has been challenged as unconstitutional in previous cases before this Court. Its legal history can be summarized as follows:

1) In Saylor v. Hall, Ky., 497 S.W.2d 218 (1973), the statute was held unconstitutional as a violation of our Kentucky Constitution, §§ 14, 54 and 241.

Kentucky Constitution § 14 is part of the Bill of Rights in our first constitution of 1792. It is the “open courts” provision and states as follows:

“All courts shall be open, and every person for an injury done him in his lands, goods, person or reputation, shall have remedy by due course of law, and right and justice administered without sale, denial or delay.”

Kentucky Constitution §§ 54 and 241 were added as new provisions in our Fourth (and last) Constitution of 1891. These were enacted along with many other provisions to limit the power of the General Assembly, which was then widely perceived as abusing its power with the grant of privileges and immunities to railroads and *812 other powerful corporate interests. See Debates, Constitutional Convention of 1890, 4 Vol.

“Most of the delegates to the Constitutional Convention felt that the real root of Kentucky’s governmental problems was the almost unlimited power of the General Assembly. One of them even said that ‘... the principal, if not the sole purpose of the constitution which we are here to frame, is to restrain its [the Legislature’s] will and restrict its authority....’
They distrusted the General Assembly, so they wrote many details of law into the Constitution.” p. 161, Research Report No. 137, Legislative Research Commission, Jan. 1987.

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Bluebook (online)
808 S.W.2d 809, 1991 Ky. LEXIS 44, 1991 WL 74146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-v-northeastern-log-homes-ky-1991.