HF 450

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/16/2013 02:54pm

A bill for an act
relating to civil actions; modifying the limitations of actions for damages based
on services or construction to improve real property; amending Minnesota
Statutes 2012, section 541.051.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 541.051, is amended to read:

541.051 LIMITATION OF ACTION FOR DAMAGES BASED ON SERVICES
OR CONSTRUCTION TO IMPROVE REAL PROPERTY.

Subdivision 1.

Limitation; service or construction of real property;
improvements.

(a) Except where fraud is involved, no action by any person in contract,
tort, or otherwise to recover damages for any injury to property, real or personal, or for
bodily injury or wrongful death, arising out of the defective and unsafe condition of
an improvement to real property, shall be brought against any person performing or
furnishing the design, planning, supervision, materials, or observation of construction or
construction of the improvement to real property or against the owner of the real property
more than two years after discovery of the injury, nor in any event shall such a cause
of action accrue more than ten years after substantial completion of the construction.
Date of substantial completion shall be determined by the date when construction is
sufficiently completed so that the owner or the owner's representative can occupy or use
the improvement for the intended purpose.

(b) Notwithstanding paragraph (a), an action for contribution or indemnity arising
out of the defective and unsafe condition of an improvement to real property may be
brought no later than two years after the cause of action for contribution or indemnity has
accrued, regardless of whether it accrued before or after the ten-year period referenced in
paragraph (a) new text begin , provided that in no event may an action for contribution or indemnity be
brought more than 14 years after substantial completion of the construction new text end .

(c) For purposes of paragraph (a), a cause of action accrues upon discovery of the
injury deleted text begin ; provided, however, that in the case of an action for contribution or indemnity
under deleted text end new text begin . For purposes of new text end paragraph (b), a cause of action new text begin for contribution or indemnity
new text end accrues upon the earlier of commencement of the action against the party seeking
contribution or indemnity, or payment of a final judgment, arbitration award, or settlement
arising out of the defective and unsafe condition.

(d) Nothing in this section shall apply to actions for damages resulting from
negligence in the maintenance, operation or inspection of the real property improvement
against the owner or other person in possession.

(e) The limitations prescribed in this section do not apply to the manufacturer or
supplier of any equipment or machinery installed upon real property.

Subd. 2.

Action allowed; limitation.

Notwithstanding the provisions of subdivision
1, paragraph (a), in the case of a cause of action new text begin described in subdivision 1, paragraph
(a), new text end which accrues during the ninth or tenth year after substantial completion of the
construction, an action to recover damages may be brought within two years after the date
on which the cause of action accrued, but in no event may such an action be brought more
than 12 years after substantial completion of the construction. Nothing in this subdivision
shall limit the time for bringing an action for contribution or indemnity.

Subd. 3.

Not construed.

Nothing in this section shall be construed as extending the
period prescribed by the laws of this state for the bringing of any action.

Subd. 4.

Applicability.

For the purposes of actions based on breach of the statutory
warranties set forth in section 327A.02, or to actions based on breach of an express written
warranty, such actions shall be brought within two years of the discovery of the breach. In
the case of an action under section 327A.05, which accrues during the ninth or tenth year
after the warranty date, as defined in section 327A.01, subdivision 8, an action may be
brought within two years of the discovery of the breach, but in no event may an action
under section 327A.05 be brought more than 12 years after the effective warranty date.
An action for contribution or indemnity arising out of actions described in this subdivision
may be brought no later than two years after the earlier of commencement of the action
against the party seeking contribution or indemnity, or payment of a final judgment,
arbitration award, or settlement arising out of the breach new text begin , provided that in no event may an
action for contribution or indemnity arising out of an action described in section 327A.05
be brought more than 14 years after the effective warranty date new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
actions commenced on or after that date.
new text end