State Farm Fire & Casualty Co. v. All Electric, Inc.

660 P.2d 995, 99 Nev. 222, 1983 Nev. LEXIS 425
CourtNevada Supreme Court
DecidedMarch 31, 1983
Docket13228, 13443
StatusPublished
Cited by37 cases

This text of 660 P.2d 995 (State Farm Fire & Casualty Co. v. All Electric, Inc.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Farm Fire & Casualty Co. v. All Electric, Inc., 660 P.2d 995, 99 Nev. 222, 1983 Nev. LEXIS 425 (Neb. 1983).

Opinions

OPINION

By the Court,

Manoukian, C. J.:

These consolidated appeals by appellant insurance companies primarily involve the constitutionality of NRS 11.205.1 [224]*224That statute essentially provides that six years after substantial completion of a construction project, a party may not sue any person who was engaged in the design, planning, supervision or observation of the construction project or in the construction itself. This protection, however, does not extend to anyone who is also an owner or occupier of the land. See NRS 11.205(3). The statute abolishes certain claims for relief rather than extinguishing a remedy as is the case with the limitation statute. See Nevada Lakeshore Co. v. Diamond Elec., Inc., 89 Nev. 293, 511 P.2d 113 (1973).

The district court granted summary judgment in favor of each respondent on the ground that the suits were barred under NRS 11.205. Appellants, representing the interests of insured property owners, contend that the statute violates the equal protection and due process clauses of the state and federal constitutions. In agreeing, we conclude that the equal protection claim is dispositive, and find it unnecessary to discuss the due process contention.

The Fourteenth Amendment to the United States Constitution forbids enactments that “deny to any person ... the equal protection of the laws.” Article 4, section 21, of the Nevada Constitution requires that all laws be “general and of uniform operation throughout the State.” We have previously held that the standard for testing the validity of legislation under the equal protection clause of the state constitution is the same as the federal standard. See Laakonen v. District Court, 91 Nev. [225]*225506, 538 P.2d 574 (1975). Consequently, we believe that the following analysis can be applied equally to the state and federal equal protection challenges.

Although the equal protection clause does not deny the state legislature the power to classify, such classifications must be reasonable. Morey v. Doud, 354 U.S. 457 (1957). And where, as here, no suspect classification or fundamental right is involved, our role is to determine whether the classification bears a rational relationship to the legislative purpose sought to be effected. Dandridge v. Williams, 397 U.S. 471 (1970); Laakonen v. District Court, supra.

Legislative classifications must apply uniformly to all who are similarly situated, and the distinctions which separate those who are included within a classification from those who are not must be reasonable, not arbitrary. See Pacific Indem. Co. v. Thompson-Yaeger, Inc., 260 N.W.2d 548 (Minn. 1977). The statute in question singles out architects and contractors, and insulates them from liability on the expiration of six years. The same statute excludes from its protection, those similarly situated, such as owners and material suppliers. The question, then, is whether there is a reasonable basis for treating architects and contractors engaged in the improvement of real property as a distinct and separate class for the purpose of granting immunity from suit.

A review of the cases involving the constitutionality of statutes similar to Nevada’s, demonstrate that the several jurisdictions deciding the question are about evenly split. Respondents argue that a legitimate distinction exists between those included and those excluded from the statute’s protection, i.e., those who own or occupy land. They essentially argue that control over the property is the crucial factor. Specifically, they assert that a tenant or landowner may fail to maintain the property adequately or may materially alter the existing improvements. They state that those within the statute’s protective shield, such as architects and contractors, are entitled to such protection because they have no control over a project once it is completed and have no opportunity to prevent an abuse by the occupier.

Respondents place great reliance on the Arkansas Supreme Court decision of Carter v. Hartenstein, 455 S.W.2d 918 (Ark. 1970), appeal dismissed, 401 U.S. 901 (1971). There, the [226]*226Arkansas court stated that: “[p]art of acceptance [of completed construction] is to accept some future responsibility for the condition of the premises .... To say that there can be no limitation in perpetuity against a designer or erector of a structure would be in effect to discriminate against professional builders and designers.” Id. at 920. We remain unpersuaded by Carter,2 Although an act of the legislature is presumed to be constitutional, State ex rel. Tidvall v. Eighth Judicial District Court, 91 Nev. 520, 539 P.2d 456 (1975), our usual deference to legislative declarations cannot be given where the evidence of discrimination is so clear, as it is in the present case.

After-thoroughly considering this important question, we are satisfied that the better reasoned cases are those which have struck such statutes as being constitutionally infirm because they improperly grant immunity from suit to a certain class of defendants, without a reasonable basis for that classification. See McClanahan v. American Gilsonite Co., 494 F.Supp. 1334 (D.Colo. 1980); Fujioka v. Kam, 514 P.2d 568 (Hawaii 1973); Skinner v. Anderson, 231 N.E.2d 588 (Ill. 1967); Pacific Indem. Co. v. Thompson-Yaeger, Inc., 260 N.W.2d 548 (Minn. 1977); Loyal Order of Moose, Lodge 1785 v. Cavaness, 563 P.2d 143 (Okla. 1977); Broome v. Truluck, 241 S.E.2d 739 (S.C. 1978); Kallas Millwork Corporation v. Square D Co., 225 N.W.2d 454 (Wis. 1975); Phillips v. ABC Builders, Inc., 611 P.2d 821 (Wyo. 1980).3

The Illinois Supreme Court was the first to declare a statute, [227]*227similar to the one in question,4 unconstitutional on equal protection grounds. See Skinner v. Anderson, supra. The rationale in Skinner has been relied upon heavily in subsequent decisions in other jurisdictions. In discussing the discriminatory impact of the statute upon others similarly situated, the court in Skinner stated:

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Bluebook (online)
660 P.2d 995, 99 Nev. 222, 1983 Nev. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-fire-casualty-co-v-all-electric-inc-nev-1983.