{"id":901622,"date":"2023-09-19T15:28:35","date_gmt":"2023-09-19T21:28:35","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901622"},"modified":"2023-09-19T15:28:39","modified_gmt":"2023-09-19T21:28:39","slug":"construction-contract-sudden-death","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-sudden-death\/","title":{"rendered":"Construction\u00a0Litigation\u00a0Roundup: \u201cSudden Death\u201d"},"content":{"rendered":"\n

Daniel Lund III | Phelps Dunbar<\/a><\/p>\n\n\n\n

It\u2019s not football, though. Rather, just when you thought it was safe in Louisiana to wait to file a garden-variety construction contract payment claim, an appellate court slams the door on it \u2013 applying a statute of \u201crepose\u201d to your claim.<\/p>\n\n\n\n

\u201cPersonal actions\u201d \u2013 such as an action on contract \u2013 are generally subject in Louisiana to a 10-year \u201cliberative prescription,\u201d the applicable statute of limitations pursuant to Louisiana Civil Code article 3499.<\/p>\n\n\n\n

Like some other states, Louisiana has a statute of \u201crepose\u201d \u2013 imposing \u201cperemption\u201d rather than prescription for claims having to do with construction projects \u2013 limiting those claims (generally speaking) to five years post-completion. Like other statutes of \u201crepose,\u201d Louisiana Revised Statute 9:2772 provides that claims on construction projects may not be filed after five years, a duration which is not subject to interruption or extension. <\/p>\n\n\n\n

Traditionally, the thought in Louisiana has been that the cited statute applied only to claims related to \u201cdeficiencies in design, planning, inspection, supervision or construction of improvements to immovable property or for property damage, personal injury or wrongful death arising from any such deficiency\u201d \u2013 because that\u2019s the exact reason the Louisiana legislature provided for enacting the statute in 1964. In theory, contractors and designers needed to have a certain cutoff to potential liability related to construction. Indeed, as discussed below, the heading of the statute reads: \u201cPeremptive period for actions involving deficiencies in surveying, design, supervision, or construction of immovables or improvements thereon.\u201d <\/p>\n\n\n\n

Hence, a subcontractor bringing a pure nonpayment claim against a general contractor seven years after project completion was shocked when the trial court in Monroe, Louisiana, dismissed the claim based upon the construction peremption statute. <\/p>\n\n\n\n

On appeal, the Louisiana appellate court determined that the statute was broader than the subcontractor believed. According to the intermediate court, language in the statute referring to actions \u201cex contractu\u2026 including but not limited to an action\u2026 to recover on a contract\u2026 or otherwise arising out of\u201d a construction project covered all manner of construction-related contract claims. <\/p>\n\n\n\n

According to the appellate court:  <\/p>\n\n\n\n

\u201cThe gravamen of [the subcontractor plaintiff\u2019s] argument is that because the heading of La. R.S. 9:2772 includes the word \u2018deficiencies,\u2019 the otherwise clear language of the statute itself should be ignored and its application be limited to construction deficiencies. The heading, however, does not constitute part of the statute. <\/p>\n\n\n\n

\u201cThe language of the statute is clear: actions arising from the construction of immovables are perempted upon the passage of five years after occupation of the improvement by the owner.\u201d<\/p>\n\n\n\n

Interestingly, this decision appears to be a case of first impression (at least in reported appellate decisions), notwithstanding the fact that the statute is nearly 60 years old.<\/p>\n\n\n\n

Chem. Insulation Co. v. Arco Builders, Inc., 55230 (La. App. 2 Cir. 08\/09\/23); 2023 La. App. LEXIS 1280<\/em><\/a><\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Daniel Lund III | Phelps Dunbar It\u2019s not football, though. Rather, just when you thought it was safe in Louisiana to wait to file a garden-variety construction contract payment claim, an appellate court slams the door on it \u2013 applying a statute of \u201crepose\u201d to your claim. \u201cPersonal actions\u201d \u2013 such as an action on… Continue reading Construction\u00a0Litigation\u00a0Roundup: \u201cSudden Death\u201d<\/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":[9,10707],"tags":[9895,224,6602,268],"class_list":["post-901622","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","category-statute-of-repose","tag-advise-consult","tag-construction-contract","tag-louisiana","tag-statute-of-repose","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction\u00a0Litigation\u00a0Roundup: \u201cSudden Death\u201d - 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