Royal Indem. Co. v. TYCO FIRE PRODUCTS, LP

704 S.E.2d 91
CourtSupreme Court of Virginia
DecidedJanuary 13, 2011
Docket091993
StatusPublished
Cited by5 cases

This text of 704 S.E.2d 91 (Royal Indem. Co. v. TYCO FIRE PRODUCTS, LP) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Royal Indem. Co. v. TYCO FIRE PRODUCTS, LP, 704 S.E.2d 91 (Va. 2011).

Opinion

704 S.E.2d 91 (2011)

ROYAL INDEMNITY COMPANY, as Subrogee of First Centrum, LLC and Centrum Prince William, LP, et al.
v.
TYCO FIRE PRODUCTS, LP.
Royal Indemnity Company, as Subrogee of First Centrum, LLC and Centrum Prince William, LP, et al.
v.
SimplexGrinnell, LP.

Record Nos. 091993, 092567.

Supreme Court of Virginia.

January 13, 2011.

*92 Michael J. Izzo, Jr.; Paul R. Bartolacci, Philadelphia, PA (Lawrence F. Walker; C. Jay Robbins, IV; Robert Tayloe Ross; Kevin T. Streit, Richmond; Cozen O'Connor Midkiff, Myncie & Ross, on briefs), for appellants.

Charles C. Eblen, Kansas City, MO; J. Michael Robert (Paul A. Williams; Dawn E. Boyce; Shook, Hardy & Bacon; Trichilo, Bancroft, Horvath & Judkins, Fairfax, on briefs), for appellees.

Virginia Association of Defense Attorneys (Mark D. Loftis; Frank K. Friedman; Woods Rogers, on brief), in support of appellees SimplexGrinnell, L.P., for amicus curiae.

Present: KOONTZ, KINSER, LEMONS, GOODWYN, MILLETTE, and MIMS, JJ., and RUSSELL, S.J.

OPINION BY Justice LEROY F. MILLETTE, JR.

In this product liability case, we address issues concerning the statute of repose and breach of warranty. We conclude that exterior sidewall sprinkler heads are "equipment" under Code § 8.01-250 and reverse the judgment of the circuit court that the sprinkler heads are ordinary building materials. We also hold that a manufacturer's description of how a sprinkler head functions does not constitute an express warranty of future performance.

BACKGROUND

This case arose out of a fire that started on the exterior balcony of an apartment building on February 8, 2003. Two exterior sidewall *93 sprinkler heads installed on two separate balconies where the fire originated failed to activate, which allowed the fire to spread to other parts of the building and adjoining buildings causing substantial damage.

Royal Indemnity Company and American Empire Surplus Lines Insurance Company (together, Royal) filed an amended motion for judgment in the amount of $10,317,083.78 against Tyco Fire Products (Tyco) and SimplexGrinnell, LP (Simplex) alleging that the sprinkler heads, which were manufactured by Tyco and installed by Simplex prior to June 1997, failed to properly activate causing substantial damage to the apartment complex.[2] Royal asserted various negligence-based causes of action against both Tyco and Simplex, including negligent design and manufacture of the sprinkler heads, and post-sale duty to warn. Royal also asserted warranty claims against both defendants, claiming that the defendants breached an alleged warranty of future performance.

The parties' stipulated facts described the sprinkler heads as follows:

The model F960/Q46 sprinkler head is an automatic dry sprinkler of the frangible bulb type. This model contains a sprinkler secured to an extension nipple that has a seal at the inlet end to prevent water from entering the nipple until the sprinkler operates. The seal mechanism at the inlet end is comprised of a brass plug and O-ring. The O-ring is fitted into a machined groove on the brass plug. The plug is attached to a yoke assembly. The yoke assembly sits upon a watertube. A guide tube assembly is fitted into the opposite end of the watertube. The bulb seat sits upon the guide tube assembly and the bulb sits upon the bulb seat and is secured in place by the compression screw. The compression screw is threaded into the frame. The frame is secured into one end of the outer pipe and the inlet is secured into the opposite end of the outer pipe. The inlet is machined with 1" NPT threads for mating the sprinkler head into a fire sprinkler system fitting.
. . . .
Under normal service conditions, the F960/Q46 sprinkler head is intended to operate as follows. When the sprinkler is in service, water is prevented from entering the assembly by the Plug and O-ring seal in the inlet of the sprinkler. The glass bulb contains a fluid that expands when exposed to heat. When the rated temperature is reached, the fluid expands sufficiently to shatter the glass bulb, and the bulb seat is released. The compressed spring is then able to expand and push the water tube as well as the guide tube outward. This action simultaneously pulls outward on the yoke, withdrawing the plug and O-ring seal from the inlet allowing the sprinkler to activate and flow water.

In its complaint, Royal alleged that the sprinkler heads failed to operate properly. Specifically, Royal asserted that "[s]cientific inspection of the pressure tested sprinkler heads . . . determined that corrosion existed at the interface between the brass plug and O-ring assembly and inlet which . . . prevented the inlet plugs from disengaging and operating as intended upon the breaking of the frangible bulbs."

Tyco and Simplex filed pleas in bar asserting that the negligence-based causes of action were barred by the statute of repose, Code § 8.01-250. After an ore tenus hearing and receipt of stipulated evidence, the circuit court granted the defendants' pleas in bar ruling that the sprinkler heads were ordinary building materials under the statute of repose.

The defendants also filed pleas in bar arguing that Royal's warranty claims were barred by the statute of limitations. After a hearing, the circuit court sustained the pleas in bar ruling the warranty claims were barred by the applicable statutes of limitations. We awarded Royal this appeal.

DISCUSSION

Royal assigns error to the circuit court's judgment sustaining the defendants' pleas in bar as to the negligence-based causes of action under the statute of repose, and as to *94 the warranty claims under the applicable statutes of limitations.

A. Statute of Repose

Royal argues that the circuit court erred in granting the defendants' pleas in bar because it ruled that Royal's negligence-based actions were barred by the five-year statute of repose, Code § 8.01-250. The statute provides, in pertinent part:

No action to recover for any injury to property . . . arising out of the defective and unsafe condition of an improvement to real property . . . shall be brought against any person performing or furnishing the design, planning, surveying, supervision of construction, or construction of such improvement to real property more than five years after the performance or furnishing of such services and construction.
The limitation prescribed in this section shall not apply to the manufacturer or supplier of any equipment or machinery or other articles installed in a structure upon real property. . . .

(Emphasis added).

Royal argues that the circuit court erred in concluding that the sprinkler heads are "ordinary building materials," and therefore covered by the statute of repose. According to Royal, the sprinkler heads are "equipment" under the terms of the statute. To support this position, Royal cites various characteristics of the sprinkler heads that this Court has previously stated were indicative of "equipment" under Code § 8.01-250. Specifically, Royal asserts that the sprinkler heads are finished products, fully assembled by the manufacturer, and individually packaged.

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Bluebook (online)
704 S.E.2d 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-indem-co-v-tyco-fire-products-lp-va-2011.