HF 2743

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/26/2018 03:46pm

A bill for an act
relating to civil actions; regulating actions for damages based on services or
construction to improve real property; providing for a limitation on actions;
amending Minnesota Statutes 2016, section 541.051, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 541.051, subdivision 1, is amended to read:

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 deleted text begin discovery
of the injury deleted text end new text begin the cause of action accrues, as specified in paragraph (c) new text end , 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), provided that in no event may an action for contribution or indemnity be brought more
than 14 years after substantial completion of the construction.

(c) For purposes of paragraph (a), a cause of action accrues new text begin : (1) for a bodily injury or
wrongful death action, new text end upon discovery of the injury new text begin ; and (2) for an action for injury to real
or personal property, upon discovery of the injury, but in no event shall a cause of action
accrue earlier than upon substantial completion, termination, or abandonment of the
construction or the improvement to real property, whichever occurs first new text end . For purposes of
paragraph (b), a cause of action for contribution or indemnity 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to causes of action accruing on or after that date.
new text end