The Subrogation Strategist

In Tadych v. Noble Ridge Constr., Inc., No. 100049-9, 2022 Wash. LEXIS 545, the Supreme Court of Washington (Supreme Court) considered whether the lower court erred in enforcing a one-year accelerated limitations period clause in a construction contract. The Supreme Court considered the extent to which the provision hindered the plaintiffs’ statutory rights - as set forth in Wash. Rev. Code § 4.16.310 - which provides homeowners with a six-year repose period for construction defect claims.  The court found that the contractual provision’s shortening of the time period from six years to one year was a gross deprivation of the plaintiffs’ statutory rights and was unfairly one-sided in favor of the defendant.  As such, the court held that the provision was substantively unconscionable and, thus, unenforceable.Continue Reading

The Florida legislature recently enacted a law clarifying when the ten-year statute of repose begins to run for cases involving “improvements to real property,” as that phrase is used in Florida Statute Section 95.11. House Bill 377 was signed into law on June 14, 2017 and took effect in all cases accruing on or after July 1, 2017. This amendment is significant to subrogation professionals evaluating when cases involving contractors and design professionals are time barred.Continue Reading

In Goodman v. Heritage Builders, Inc., 390 P.3d 398 (Colo. 2017) (en banc), the Supreme Court of Colorado clarified the parameters for timely-filing third-party claims for indemnification or contribution in construction defects cases. The court held that C.R.S. § 13-80-104(1)(b)(II) – addressing when a party can file third-party indemnification and contribution claims – controls over the two-year statute of limitations period set forth in C.R.S. § 13-80-102 and the six-year statute of repose period in C.R.S. § 13-80-104(1)(a). Thus, in Colorado, so long as third-party ... Continue Reading

In Sierra Pacific Industries v. Bradbury, 2016 Colo. App. Lexis 1274, 2016 COA 132 (September 8, 2016), Sierra Pacific Industries, Inc. (Sierra Pacific), a subcontractor hired to supply windows and doors on a condominium construction project, filed an indemnification action against Jason Bradbury, d/b/a Bradbury Construction, Inc. (Bradbury), a sub-subcontractor Sierra Pacific hired to install windows and doors. After the trial court granted summary judgment in Bradbury’s favor, the Court of Appeals of Colorado addressed whether Colorado’s six-year statute of repose for construction defect claims, C.R.S. § 13-8-104, barred Sierra Pacific’s claims against Bradbury. In particular, the court addressed the question of whether the tolling period for indemnification claims set forth in § 13-8-104(b)(1) tolls the repose period. The court also addressed how the phrase “substantial completion” should be interpreted in multi-contractor construction cases. Finally, the court considered whether Sierra Pacific could rely on the “repair doctrine” to extend the “substantial completion” date, the date on which the statute of repose begins to run. Sierra Pacific reminds us that, when a defendant invokes a construction defect statute of repose to defeat a plaintiff’s claims, it is important to analyze how the jurisdiction at issue defines the phrase “substantial completion” and how it applies tolling arguments to the statute of repose.Continue Reading