State v. McInnis Bros. Const.

701 So. 2d 937, 1997 WL 644755
CourtSupreme Court of Louisiana
DecidedOctober 21, 1997
Docket97-CC-0742
StatusPublished
Cited by98 cases

This text of 701 So. 2d 937 (State v. McInnis Bros. Const.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. McInnis Bros. Const., 701 So. 2d 937, 1997 WL 644755 (La. 1997).

Opinion

701 So.2d 937 (1997)

STATE of Louisiana Through the DIVISION OF ADMINISTRATION
v.
McINNIS BROTHERS CONSTRUCTION.

No. 97-CC-0742.

Supreme Court of Louisiana.

October 21, 1997.
Rehearing Denied December 12, 1997.

*938 Milton C. Roberts, Jr., Mayer, Smith & Roberts, Shreveport, for Applicant.

Pamela M. Perkins, Baton Rouge, Billy R. Pesnell, Hargove, Pesnell & Wyatt, Shreveport, Larry G. Canada, Galloway, Johnson, Tompkins & Burr, New Orleans, William B. Monk, Stockwell, Sievert, Viccellio, Clements & Shaddock, Lake Charles, Jason B. Davis, Davis & Flanagan, Shreveport, Edward E. Rundell, Gold, Weems, Burser, Sues & Rundell, Alexandria, Jackson B. Bolinger, Lafayette, Donald J. Armand, Jr., Peter J. Rotolo, III, Shreveport, Blanchard, Walker, O'Quinn & Roberts, Shreveport, Brian D. Smith, Lunn, Irion, Johnson & Salley, Shreveport, for Respondent.

W.P. Wray, Jr., Christopher P. Pierce, Wray & Kracht, Baton Rouge, for La. Associated Gen. Contractors, Inc., Amicus Curiae.

KIMBALL, Justice.[*]

We granted applicants' writ to determine if the time limitation provided in La. R.S. 38:2189for the filing by the State of a suit against a general contractor and a surety on a public works contract is peremptive or prescriptive. Considering the language of *939 the statute, the legislative intent behind the statute, the public policy supporting that intent, we conclude the statute establishes a period of peremption and is therefore not susceptible to suspension by operation of contra non valentem.

FACTS

On June 3, 1982, McInnis Brothers and the State entered into a contract for the construction of the Northwestern State University Nursing Education Center in Shreveport, Louisiana. Pursuant to La. R.S. 38:2216, McInnis Brothers secured a bond from the Great American Insurance Company in part "for the faithful performance" of its duties under the contract. The Center was constructed, and notice of acceptance was recorded by the State in the office of the clerk of court in Caddo Parish on May 9, 1985.

The State alleges that in March of 1991, maintenance personnel at the school noticed that bricks in the exterior walls of the building had begun to move and shift. On July 18, 1994, the State filed suit against McInnis Brothers and Great American Insurance Co. alleging McInnis improperly constructed the exterior of the building, particularly that portion of the construction involving brick wall and window installation, brick ties, brick shelf angles, through-wall flashing and window flashing. McInnis answered the suit, filed third party demands against several subcontractors and their insurers, and filed a peremptory exception of prescription alleging the State's claim was prescribed under La. R.S. 38:2189 which provides a five year time period from notice of acceptance, substantial completion or notice of default of the contractor in which to file suit against the contractor or the surety on the contract or the bond. The State opposed the exception, arguing that under an application of the "discovery rule" of contra non valentem, the five year prescriptive period did not begin to run until discovery of the defects in March of 1991; therefore, the suit filed in July of 1994 was timely.

The trial judge denied the exception of prescription, and the second circuit court of appeal denied defendants' application for a supervisory writ. This court granted defendants' writ application and remanded the matter to the second circuit for briefing, argument and opinion. 96-1822 (La.10/25/96), 681 So.2d 350. Upon remand, the court of appeal issued an opinion affirming the trial court's ruling. 690 So.2d 927 (La.App. 2d Cir.1997). We subsequently granted defendants' writ application to determine whether the time limitation established in La. R.S. 38:2189 is susceptible to suspension by operation of the "discovery rule" of contra non valentem. 97-0742 (La.5/9/97), 693 So.2d 779.

LAW

A person's right to assert a cause of action may be lost with the passage of time by the operation of either prescription or peremption. The Louisiana Civil Code defines peremption as a "period of time fixed by law for the existence of a right." La. C.C. art. 3458. When the peremptive period has run, the cause of action itself is extinguished unless timely exercised. As a result, peremption need not be pleaded and may be supplied by a court at any time. La. C.C. art. 3460. Most significantly, however, peremption may not be renounced, interrupted, or suspended. La. C.C. art. 3461. In contrast, liberative prescription is a period of time fixed by law for the exercise of a right. Article 3447 of the Civil Code defines liberative prescription as a "mode of barring of actions as a result of inaction for a period of time." Thus, while peremption destroys the right itself, prescription merely prevents the enforcement of a right such that a natural obligation remains after prescription has run. Consequently, prescription must be specially pleaded and cannot be supplied by the court, La. C.C. art. 3452 and La. C.C.P. art. 927. Additionally, prescription may be renounced, La. C.C. arts. 3449-51, interrupted, La. C.C. arts. 3462-66, and suspended, La. C.C. arts. 3467-72.

One type of suspension which may apply to a prescriptive period but which, by its very nature, does not apply to a peremptive period, is the doctrine of contra non valentem agere nulla currit praescriptio. In Corsey v. State, through Dept. of Corrections, *940 375 So.2d 1319 (La.1979), this court reiterated the three categories of situations to which contra non valentem had been traditionally applied to suspend the running of liberative prescription: (1) where there was some legal cause which prevented the courts or their officers from taking cognizance of or acting on the plaintiff's action; (2) where there was some condition coupled with the contract or connected with the proceedings which prevented the creditor from suing or acting; and (3) where the debtor himself has done some act effectually to prevent the creditor from availing himself of his cause of action. Corsey, 375 So.2d at 1321.

In Corsey, this court also formally recognized for the first time, although the seeds of this approach had been sown in earlier cases,[1] a fourth category in which contra non valentem suspends the running of prescription: "Where the cause of action is not known or reasonably knowable by the plaintiff, even though his ignorance is not induced by the defendant." Corsey, 375 So.2d at 1322.[2] Application of contra non valentem under these particular circumstances is now commonly known as the "discovery rule." As can be seen from the above discussion, contra non valentem has always been a judicially created equitable doctrine applied to ameliorate the harshness which would result from the strict application of prescription in certain situations.

Although we have not hesitated to apply the doctrine where the circumstances warrant it, we are not unmindful of the role it should play in our law, for, as comment (d) to Article 3467 notes, it should be applied only in "exceptional circumstances." Nor do we fail to recognize the need for certainty in actions fulfilled by and the stabilizing societal effect provided by subjecting claims to prescriptive periods.

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Bluebook (online)
701 So. 2d 937, 1997 WL 644755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-mcinnis-bros-const-la-1997.