Sedar v. Knowlton Construction Co.

551 N.E.2d 938, 49 Ohio St. 3d 193
CourtOhio Supreme Court
DecidedMarch 7, 1990
DocketNo. 88-1569
StatusPublished
Cited by117 cases

This text of 551 N.E.2d 938 (Sedar v. Knowlton Construction Co.) 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
Sedar v. Knowlton Construction Co., 551 N.E.2d 938, 49 Ohio St. 3d 193 (Ohio 1990).

Opinions

Holmes, J.

We are asked in this case to decide whether R.C. 2305.131 may constitutionaEy prevent the accrual of actions sounding in tort against architects, construction contractors and others who perform services related to the design and construction of improvements to real property, where such action arises more than ten years following the completion of such services. For the reasons which follow, and as applied to bar the claims of appeEant herein, we answer such query in the affirmative.

I

R.C. 2305.131 provides:

[195]*195“No action to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property nor any action for contribution or indemnity for damages sustained as a result of said injury, shall be brought against any person performing services for or furnishing the design, planning, supervision of construction, or construction of such improvement to real property, more than ten years after the performance or furnishing of such services and construction. This limitation does not apply to actions against any person in actual possession and control as owner, tenant, or otherwise of the improvement at the time the defective and unsafe condition of such improvement constitutes the proximate cause of the injury or damage for which the action is brought.”

This ten-year statute of repose applies to architects, construction contractors and others who supply services in the design, planning, supervision of construction or construction of buildings and other improvements to real property. Unlike a true statute of limitations, which limits the time in which a plaintiff may bring suit after the cause of action accrues, a statute of repose, such as R.C. 2305.131, potentially bars a plaintiffs suit before the cause of action arises. Comment, The Constitutionality of Statutes of Repose: Federalism Reigns (1985), 38 Vand. L. Rev. 627, 629; Hartford Fire Ins. Co. v. Lawrence, Dykes, Goodenberger, Bower & Clancy (C.A. 6, 1984), 740 F. 2d 1362, 1367; Hardy v. VerMeulen (1987), 32 Ohio St. 3d 45, 46, 512 N.E. 2d 626, 627, fn. 2.

Construction statutes of repose, such as R.C. 2305.131, were enacted by several states in the late 1950s and early 1960s in response to the expansion of common-law liability of architects and builders to third parties who lacked “privity of contract.” Hartford Fire Ins. Co., supra, at 1368; Kocisko v. Charles Shutrump & Sons Co. (1986), 21 Ohio St. 3d 98, 101, 21 OBR 392, 394, 488 N.E. 2d 171, 174 (Wright, J., dissenting).1 Generally, the only contracts involved in this context are the ones between the architect and the owner and between the contractor and the owner.2 At early common law, courts strictly applied the doctrine of privity of contract and denied recovery to a third party who, after a structure had been completed and accepted by an owner, sought recovery from the architect or builder involved for injuries allegedly sustained as a result of a defective or unsafe condition of such structure. Annotation (1979), 93 A.L.R. 3d 1242, 1245-1246; Winterbottom v. Wright (1842), 10 M & W 109, 152 Eng. Reprint 402.

“The general rule of law, subject to certain exceptions not now material to note, is that, after the contractor has turned over the work and it has [196]*196been accepted by the owner, the contractor incurs no further liability to third persons by reason of the condition of the work, but the responsibility for maintaining it and protecting third persons against danger therefrom, or the use of it in a defective condition, or failing to give notice or warning of dangers to be apprehended from its existence, is then shifted to the owner. This rule of law does not seem to be disputed; in fact, counsel for both parties cite and rely in part on the same cases. * * *” (Citations omitted.) Williams v. Edward Gillen Dock, Dredge & Constr. Co. (C.A. 6, 1919), 258 F. 591, 594.

In Ohio, the law of privity was even more stringent, limiting liability to those in actual control or possession of premises, be they owners or lessees of the owner. See Burdick v. Cheadle (1875), 26 Ohio St. 393; Berkowitz v. Winston (1934), 128 Ohio St. 611, 1 O.O. 269, 193 N.E. 343, paragraph two of the syllabus (“[liability in tort is an incident to occupation or control * *

Nationally, the fall of the privily doctrine began generally with the landmark decision in MacPherson v. Buick Motor Co. (1916), 217 N.Y. 382, 111 N.E. 1050, and specifically with respect to the construction industry in Inman v. Binghamton Housing Auth. (1957), 3 N.Y. 2d 137, 164 N.Y. Supp. 2d 699, 143 N.E. 2d 895, which held that privity of contract was no longer required for an injured party to recover for negligent architectural design. Id. at 144, 164 N.Y. Supp. 2d at 703-704, 143 N.E. 2d at 899. Although many jurisdictions which had judicially considered the issue abolished the privity doctrine in negligence actions against an architect, see Note, The Crumbling Tower of Architectural Immunity, supra, at 221, this court has not had occasion to consider the continued validity of the privity doctrine with respect to third persons who are injured due to an allegedly defective or unsafe building design or construction. Indeed, when R.C. 2305.131 was enacted in 1963, the strict privity doctrine remained intact in Ohio. Accordingly, in Insurance Co. of North America v. Bonnie Built Homes (1980), 64 Ohio St. 2d 269, 18 O.O. 3d 458, 416 N.E. 2d 623, this court held as syllabus law that “[p]rivity of contract is a necessary element of an action brought by an owner of a real-property structure against the builder-vendor of the structure for damages proximately caused by unworkmanlike construction.” See, also, Velotta v. Leo Petronzio Landscaping, Inc. (1982), 69 Ohio St. 2d 376, 23 O.O. 3d 346, 433 N.E. 2d 147.

It was not until 1983 that this court, in McMillan v. Brune-Harpenau-Torbeck Builders, Inc. (1983), 8 Ohio St. 3d 3, 8 OBR 73, 455 N.E. 2d 1276, at syllabus, overruled Bonnie Built Homes, supra, holding: “Privity of Contract is not a necessary element of an action in negligence brought by a vendee of real property against the builder-vendor.” However, as stated, this court has not had occasion to recognize a similar cause of action against builders or architects brought by third parties other than vendees. Although R.C. 2305.131, as enacted, does encompass such actions, we express no specific opinion concerning such issue, as the sole question before us here is the constitutionality of the provision for repose contained in such section of law.

R.C. 2305.131, by its express terms, does not apply to persons in actual possession and control of premises at the time the unsafe and defective condition proximately causes the injury or damage complained of, and appears to recognize the common-law [197]*197liability of such persons. Impliedly, the statute also does not apply to any person who supplies materials, rather than services, to be used in the construction of an improvement to real property, as he may be liable for damages caused by defects in the materials under Section 402A of the Restatement of the Law 2d, Torts (1965). Cf. Lonzrick v. Republic Steel Corp.

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Bluebook (online)
551 N.E.2d 938, 49 Ohio St. 3d 193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sedar-v-knowlton-construction-co-ohio-1990.