The recent Tennessee Court of Appeals
decision of Keith Gillis
v. Covenant Health, 2015 WL 3563034 (Tenn. Ct. App. 2015) discussed the
four year statute of repose found in T.C.A.
§ 28-3-202 for construction defect claims.
This statute of repose is a very good way to defeat many construction
defect claims in Tennessee. This particular
case dealt with a situation where a radiology facility at Methodist Hospital was
allegedly defectively constructed.
Specifically, the walls around the radiology facilities required a
certain amount of lead shielding but there was a portion of the walls that did
not contain the necessary lead shield to protect individuals from exposure to
excessive radiation. As a result,
plaintiffs claimed they were exposed to excessive radiation and therefore they sued
the construction company that failed to put in the necessary lead shielding.
Tennessee law is clear that we have a four year
statute of repose that bars claims for construction defect cases filed greater
than four years from the date of substantial completion (with certain
exceptions). The entire statute found in
T.C.A.
§ 28-3-202 is as follows:
All actions to
recover damages for any deficiency in the design, planning, supervision,
observation of construction, or construction of an improvement to real
property, for injury to property, real or personal, arising out of any such
deficiency, or for injury to the person or for wrongful death arising out of
any such deficiency, shall be brought against any person performing or
furnishing the design, planning, supervision, observation of construction,
construction of, or land surveying in connection with, such an improvement
within four (4) years after substantial completion of such an improvement.
The question therefore,
in many cases, centers around how to determine the date of “substantial
completion.” T.C.A.
§ 28-3-201(2) defines substantial completion as follows:
(2) “Substantial
completion” means that degree of completion of a project, improvement, or a
specified area or portion thereof (in accordance with the contract documents,
as modified by any change orders agreed to by the parties) upon attainment of
which the owner can use the same for the purpose for which it was intended; the
date of substantial completion may be established by written agreement between
the contractor and the owner.
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