Reinke Manufacturing Co. v. Hayes

590 N.W.2d 380, 256 Neb. 442, 1999 Neb. LEXIS 57
CourtNebraska Supreme Court
DecidedMarch 12, 1999
DocketS-98-101
StatusPublished
Cited by140 cases

This text of 590 N.W.2d 380 (Reinke Manufacturing Co. v. Hayes) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reinke Manufacturing Co. v. Hayes, 590 N.W.2d 380, 256 Neb. 442, 1999 Neb. LEXIS 57 (Neb. 1999).

Opinion

Hendry, C.J.

I. INTRODUCTION

This is an action arising from a contract for engineering design services. Appellant, Reinke Manufacturing Company, Inc. (Reinke), appeals from an order granting summary judgment to appellee, Edward David Hayes, doing business as E-H Engineering (Hayes), on the basis that Reinke’s claims were barred by the 2-year statute of limitations applicable to professional negligence, Neb. Rev. Stat. § 25-222 (Reissue 1995). For the reasons that Reinke’s professional negligence claims accrued more than 2 years prior to the filing of its cause of action and we find no exception tolling the statute of limitations, we affirm.

II. FACTUAL BACKGROUND

Reinke is a Nebraska corporation engaged in the manufacture and sale of agricultural center-pivot irrigation systems. On June 18, 1991, Reinke entered into an agreement for “engineering design services” with Hayes. The agreement established that Hayes would provide Reinke with engineering design servicés for the review, design, development, and documentation of the “CENTER PIVOT MASTER CONTROLLER SYSTEM” (the system).

In the spring of 1992, Reinke manufactured and sold approximately 35 center-pivot irrigation systems that were equipped with the system designed and developed by Hayes pursuant to the agreement. Thereafter, Reinke began receiving complaints from its customers regarding the system. After receiving these complaints, Reinke, with the assistance of Hayes, undertook to *445 correct the reported problems. On November 7, Reinke created a document that detailed the alleged defects and deficiencies of the system which were known to Reinke at that time.

Reinke alleges that in February 1993, it decided to seek the assistance of another engineering firm to work with Hayes toward solving the reported problems with the system. On May 7, Reinke hired engineers from Applied Micro Technology to work on the system. Although Hayes contends that he had completed all design and engineering work or services for Reinke prior to November 16, 1992, Reinke alleges that Hayes continued to work on the system and consult with Reinke until July 1993. Reinke further asserts that it did not became aware of the full extent and magnitude of the defects contained in the system until July 1993, when the new engineers advised Reinke that it would take more than minor fine-tuning and adjustment to correct the problems its customers had reported. On November 17, 1993, Reinke wrote a letter to Hayes and made a specific demand for damages resulting from the alleged design defects.

III. PROCEDURAL BACKGROUND

On November 30, 1994, Reinke filed a petition in the district court for Thayer County, Nebraska, alleging that Hayes had been negligent and had breached his contract with Reinke. In response, Hayes filed a demurrer, which the court sustained on the ground that Reinke failed to allege a fundamental act of negligence independent of the service contract. On February 5, 1996, Reinke filed a second amended petition, to which Hayes demurred on several grounds, including the statute of limitations. The trial docket states that Hayes’ special demurrer to the negligence portion of the amended petition was sustained but that the balance of the demurrer was overruled. Reinke was then given another opportunity to amend its pleading, and on March 3, 1997, Reinke filed a third amended petition. Hayes again responded by filing a demurrer.

Although the record is unclear whether the court sustained or overruled Hayes’ demurrer to Reinke’s third amended petition, the court noted in its entry on the trial docket that Reinke’s third amended petition did not plead a tort or tort damages. The court further stated that it appeared that a tort could not be pled and *446 instructed Hayes to further plead. On June 10,1997, Hayes filed an answer to Reinke’s third amended petition. Hayes then filed a motion for summary judgment asserting that Reinke’s claims were barred by the applicable statute of limitations, § 25-222. In sustaining Hayes’ summary judgment motion, the court noted in the trial docket that “E-H Engineering is a professional” and that Reinke knew the system had substantial problems based, in part, upon the complaints that Reinke’s customers had made prior to November 1992. Reinke timely appealed the district court’s decision to the Nebraska Court of Appeals. We removed the case to our docket pursuant to our power to regulate the Nebraska Court of Appeals’ caseload and that of this court. See Neb. Rev. Stat. § 24-1106(3) (Reissue 1995).

IV. ASSIGNMENTS OF ERROR

Reinke contends the district court erred in (1) finding Reinke’s cause of action for breach of contract time barred by § 25-222; (2) finding that Reinke’s cause of action accrued more than 2 years prior to the time Reinke filed its petition; (3) not finding that the continuous representation rule applied to the professional relationship between the parties and, thereby, tolled the statute of limitations; and (4) sustaining Hayes’ demurrer to Reinke’s third amended petition because Reinke was entitled to plead both tort and contract theories of recovery.

V. STANDARD OF REVIEW

Summary judgment is proper only when the pleadings, depositions, admissions, stipulations, and affidavits in the record disclose that there is no genuine issue as to any material fact or as to the ultimate inferences that may be drawn from those facts and that the moving party is entitled to judgment as a matter of law. Kratochvil v. Motor Club Ins. Assn., 255 Neb. 977, 588 N.W.2d 565 (1999); Nicholson v. General Cas. Co. of Wis., 255 Neb. 937, 587 N.W.2d 867 (1999).

In appellate review of a summary judgment, the court views the evidence in a light most favorable to the party against whom the judgment is granted and gives such party the benefit of all reasonable inferences deducible from the evidence. Kratochvil v. Motor Club Ins. Assn., supra; Nicholson v. General Cas. Co. of Wis., supra.

*447 Which statute of limitations applies is a question of law that an appellate court must decide independently of the conclusion reached by the trial court. Weaver v. Cheung, 254 Neb. 349, 576 N.W.2d 773 (1998). See, also, Kratochvil v. Motor Club Ins. Assn., supra.

VI. ANALYSIS

1. Summary Judgment

Reinke’s first three assignments of error pertain to Hayes’ motion for summary judgment, which the district court granted based upon its determination that § 25-222 barred Reinke’s claims. Section 25-222 provides:

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Bluebook (online)
590 N.W.2d 380, 256 Neb. 442, 1999 Neb. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reinke-manufacturing-co-v-hayes-neb-1999.