{"id":668,"date":"2012-07-16T10:37:39","date_gmt":"2012-07-16T16:37:39","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=668"},"modified":"2012-07-16T10:37:39","modified_gmt":"2012-07-16T16:37:39","slug":"an-overview-of-minnesota-statutes-of-limitation-and-repose-in-construction-defect-lawsuits","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/an-overview-of-minnesota-statutes-of-limitation-and-repose-in-construction-defect-lawsuits\/","title":{"rendered":"An Overview of Minnesota Statutes of Limitation and Repose in Construction Defect Lawsuits"},"content":{"rendered":"

Alex Nelson – June 27, 2012<\/p>\n

The Statutes of Limitation and Repose outline the time-frames within which a construction defect action must be brought.\u00a0 A claim not filed or properly asserted within the applicable time period is considered \u201ctime barred\u2019, or \u201cstale\u201d, and is subject to dismissal in its entirety.\u00a0 A few important things to remember about Statutes of Limitation and Repose are that:<\/p>\n

Time Periods are Short and often Ambiguous.<\/p>\n

Always consult an attorney if you are not positive about how to calculate them.\u00a0 Any reputable attorney will do a free, initial statute of limitation analysis for you.<\/p>\n

My law firm turns down more cases than we take, and the primary reason is missed Statutes of Limitation and Repose.<\/p>\n

Statutes of Limitation<\/p>\n

There are four main types of construction defect claims brought in Minnesota, each with its own Statute of Limitation requirements:<\/p>\n

1.\u00a0 \u201c327A\u201d Statutory Warranty Claims for homes or condo\/townhome units: A homeowner has only 6 months within which to give written notice of the defect to the builder once the defect has manifested itself.\u00a0 An action must be commenced within two years of when the defect was known, or should have been known.<\/p>\n

2.\u00a0 \u201c515B\u201d Express and Implied Warranty Claims under the Minnesota Common Interest Ownership Act:<\/p>\n

a. On homes or condo\/townhome units, the statute runs (regardless of anyone\u2019s knowledge of the claim) 6 years from the earlier of:<\/p>\n

(i)Transfer of title to the first purchaser; or<\/p>\n

(ii)The time the purchaser takes possession of the unit<\/p>\n

b. On common elements in a condo\/townhome community:\u00a0 The statute runs (regardless of anyone\u2019s knowledge of the claim) 6 years from the later of:<\/p>\n

(i) Completion of the common element;<\/p>\n

(ii) The first unit sale; or<\/p>\n

(iii) Termination of Declarant control<\/p>\n

**These time periods can be shortened by the Declarant to as little as 2 years, so complete review of the CC&Rs, purchase contracts, etc. is needed.**<\/p>\n

3. \u00a0General Negligence or Breach of Contract Claims<\/p>\n

a.\u00a0 Negligence: 2 years after the manifestation of the defect<\/p>\n

b.\u00a0 Breach of Contract: 2 years after the builder fails to fulfill the warranty<\/p>\n

4. \u00a0Fraud\u00a0 or Misrepresentation:\u00a0 6 years after discovery of the facts constituting the misrepresentation.<\/p>\n

A few more general principles to consider when calculating and evaluating Statutes of Limitation:<\/p>\n

The clock typically starts when you \u201cknew or should have known\u201d of the defect. That is, when the damage starts to manifest, even if you don\u2019t know the cause yet.<\/p>\n

You may, or may not get a separate 2 year limitation period for each defect, or even for each location of the defect.<\/p>\n

\u201cWorking with the builder\u201d may, or may not toll (pause) the Statutes of Limitation.<\/p>\n

Statutes of Repose<\/p>\n

Statutes of Repose apply to bar a claim whether you know about the defect(s) or not. The Statute of Repose is considered an \u201cabsolute\u201d time bar. Again, each type of legal claim comes with its own calculation:<\/p>\n

1.\u00a0 Breach of Contract or Negligence claims: 10 years from \u201csubstantial completion\u201d \u2013 when the improvement could be occupied or used for its intended purpose.\u00a0 This period can be extended an additional two years, up to a total of 12 years, when the defect manifests in year 9 or 10.<\/p>\n

2.\u00a0 \u201c327A\u201d Warranty claims: The various statutory warranties start running upon unit purchase or occupancy, and expire on a staggered schedule.\u00a0 The warranty time periods are:<\/p>\n

1 year \u2013 general workmanship and materials<\/p>\n

2 years \u2013 electric, plumbing, HVAC, etc.<\/p>\n

10 years \u2013 \u201cmajor construction defects\u201d<\/p>\n

If these 1, 2, and 10 year time periods expire without a defect manifesting, \u201c327A\u201d claims will be forever time-barred.<\/p>\n

3.\u00a0 \u201c515B\u201d Express and Implied Warranty Claims under the Minnesota Common Interest Ownership Act:<\/p>\n

a. On homes or condo\/townhome units, the statute runs (regardless of anyone\u2019s knowledge of the claim) 6 years from the earlier of:<\/p>\n

(i)Transfer of title to the first purchaser; or<\/p>\n

(ii)The time the purchaser takes possession of the unit<\/p>\n

b. On common elements in a condo\/townhome community:\u00a0 The statute runs (regardless of anyone\u2019s knowledge of the claim) 6 years from the later of:<\/p>\n

(i) Completion of the common element;<\/p>\n

(ii) The first unit sale; or<\/p>\n

(iii) Termination of Declarant control<\/p>\n

**These time periods can be shortened by the Declarant to as little as 2 years, so complete review of the CC&Rs, purchase contracts, etc. is needed.**<\/p>\n

via An Overview of Minnesota Statutes of Limitation and Repose in Construction Defect Lawsuits \u00bb Construction Defect Law Blog<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Alex Nelson – June 27, 2012 The Statutes of Limitation and Repose outline the time-frames within which a construction defect action must be brought.\u00a0 A claim not filed or properly asserted within the applicable time period is considered \u201ctime barred\u2019, or \u201cstale\u201d, and is subject to dismissal in its entirety.\u00a0 A few important things to… Continue reading An Overview of Minnesota Statutes of Limitation and Repose in Construction Defect Lawsuits<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4,172],"tags":[19,187],"class_list":["post-668","post","type-post","status-publish","format-standard","hentry","category-construction-defects","category-construction-law-2","tag-construction-defects-2","tag-statute-of-limitations","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nAn Overview of Minnesota Statutes of Limitation and Repose in Construction Defect Lawsuits - 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