University of Vermont v. W.R. Grace & Co.

565 A.2d 1354, 152 Vt. 287, 1989 Vt. LEXIS 141
CourtSupreme Court of Vermont
DecidedAugust 4, 1989
Docket88-181
StatusPublished
Cited by31 cases

This text of 565 A.2d 1354 (University of Vermont v. W.R. Grace & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
University of Vermont v. W.R. Grace & Co., 565 A.2d 1354, 152 Vt. 287, 1989 Vt. LEXIS 141 (Vt. 1989).

Opinion

Morse, J.

The issue presented by this case is whether the statute of limitations, in a product liability action alleging property damage due to asbestos contamination, begins to run from the time the product was purchased and installed or from the moment the damage was or should have been discovered. The trial court, measuring from the former, entered summary judgment for defendant on the ground that plaintiff’s claims *288 were barred by the six-year statute of limitations as provided in 12 V.S.A. § 511. 1 We reverse and remand.

Defendant manufactured Mono-Kote 3 (MK 3), which is sprayed on surfaces to make them fireproof. The University of Vermont (UVM) used MK 3 sold by defendant from August 1971 to February 1972 in the process of converting an old athletic fieldhouse into a central heating plant. The product was shipped to the job site in a dry powder, mixed with water, and sprayed against the surfaces to be fireproofed. At the time, plaintiff did not know MK 3 contained asbestos. It was not until 1985, according to UVM, that it discovered the presence of asbestos in the fireproofing in the heating plant.

In May of 1986, UVM filed this lawsuit, seeking to recover, under a variety of theories, actual and punitive damages. Plaintiff also sought restitution and a declaratory judgment that defendant is liable to UVM for indemnification in all claims that may be brought by persons injured by exposure to the asbestos. 2

I.

12 V.S.A. § 512(4) provides that actions for personal injury shall be commenced within three years after the cause of action accrues “provided that the cause of action shall be *289 deemed to accrue as of the date of the discovery of the injury.” 3 See also 12 V.S.A. § 518(a) (similar discovery-driven statute of limitations for “radiation injury or injury from other noxious agents medically recognized as having a prolonged latent development”); 12 V.S.A. § 521 (discovery-driven statute of limitations for medical malpractice actions); Lillicrap v. Martin, — Vt. —, —, — A.2d —, — (19 — ) (statute of limitations in medical malpractice case “does not commence to run until the plaintiff has discovered his ‘legal injury,’ such that the statute begins to run only when the plaintiff has or should have discovered both the injury and the fact that it may have been caused by the defendant’s negligence or other breach of duty”).

Since the claims in this case do not fall under the categories listed in § 512, the trial court found that the applicable statute of limitations is the six-year period for “civil actions” provided in 12 V.S.A. § 511. 4 Unlike § 512(4), § 511 does not define “accrual.” The question before us, therefore, is whether the discovery rule, defining the point at which the cause of action accrues as the time of discovery of the injury, applies in cases under § 511. Past decisions of this Court have held it did not. See, e.g., South Burlington School District v. Goodrich, 135 Vt. 601, 604-05, 382 A.2d 220, 222 (1977) (Court declined to adopt “discovery rule” in actions where 12 V.S.A. § 511 provided the *290 applicable limitations period). The law has since changed, however.

In Cavanaugh v. Abbott Laboratories, 145 Vt. 516, 521-26, 496 A.2d 154, 160-61 (1985), we held that the discovery rules of §§ 512(4) and 518 may be applied retroactively, that is, to causes of action arising before the enactment of the statutes. The holding in Cavanaugh is not limited to personal injury actions, however. The Court wrote broadly:

We hold that the rule of Murray v. Allen [103 Vt. 373, 154 A. 678 (1931) (statute of limitations begins to run at time of last negligent act attributable to defendant)] is of no further effect in determining the date when a statute of limitations, such as 12 V.S.A. §§ 512 and 513, commences to run____

Id. at 520, 496 A.2d at 157 (emphasis added). Section 513 provides a special one-year limit on actions to recover for skiing injuries, and, unlike § 512(4), does not contain language explaining that the cause of action accrues only when the injury is discovered. Thus it is clear that the discovery rule in Cavanaugh applies even where the statute is silent on the matter. The Court continued:

We are ... convinced that adopting a rule of discovery, which coincides with those rules of discovery adopted by the legislature in 12 V.S.A. §§ 512(4) (Supp. 1984) and 518(a), allows for a uniform means for determining the time of accrual, regardless of the actual date of accrual in any specific case.

Id. at 526, 496 A.2d at 160-61 (emphasis added). See also Heath v. Sears, Roebuck & Co., 123 N.H. 512, 523-24, 464 A.2d 288, 294 (1983) (“[A] cause of action does not accrue until the plaintiff discovers or, in the exercise of reasonable diligence, should have discovered both the fact of his injury and the cause thereof.”) and cases cited.

We now reaffirm the “uniform rule” established in Cavanaugh, and hold specifically that the discovery rule should be read into § 511. As then Justice Billings stated:

To say that a cause of action accrues to a person or legal entity when the person or entity may maintain an action thereon and, at the same time, that it accrues before the *291 person or entity has or can reasonably be expected to have knowledge of any wrong inflicted is patently inconsistent and unrealistic. One cannot maintain an action before one knows there is one. To say to one who has been wronged, “You had a remedy, but before the wrong was ascertainable to you, the law stripped you of your remedy,” makes a mockery of the law. In the absence of an express statutory direction to that effect, to ascribe this meaning to the word “accrue” is unreasonable.

South Burlington School District, 135 Vt. at 609, 382 A.2d at 225 (Billings, J., dissenting).

These views are especially persuasive in suits to recover the costs of removing asbestos, a material used extensively in construction before its dangers fully came to light — or at least before manufacturers warned purchasers of its hazards. The federal Environmental Protection Agency first regulated the spray-on application of asbestos products in building construction in 1973. See 43 Fed. Reg. 26,372 (1978) (amending ban on spray application of materials containing more than one percent asbestos).

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Bluebook (online)
565 A.2d 1354, 152 Vt. 287, 1989 Vt. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/university-of-vermont-v-wr-grace-co-vt-1989.