SF 1474

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to civil law; preserving the right of building contractors to bring an
action for contribution or indemnity under certain circumstances; amending
Minnesota Statutes 2006, section 541.051.

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

Section 1.

Minnesota Statutes 2006, 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, deleted text begin nor any action for contribution or indemnity for damages
sustained on account of the injury, deleted text end 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 deleted text begin or, in the case of an action for
contribution or indemnity, accrual of the cause of action deleted text end , nor deleted text begin , deleted text end 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) new text begin 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 end

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

deleted text begin (c) deleted text end new text begin (d) new text end 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.

deleted text begin (d) deleted text end new text begin (e) new text end 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, new text begin paragraph (a), new text end in the case of deleted text begin an deleted text end new text begin a cause of new text end action 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 new text begin cause of new text end action accrued, but in no
event may new text begin such new text end an action be brought more than 12 years after substantial completion of
the construction. new text begin Nothing in this subdivision shall limit the time for bringing an action for
contribution or indemnity.
new text end

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. new text begin An
action for contribution or indemnity related to actions described in this subdivision may be
brought no later than two years after the cause of action for contribution or indemnity has
accrued, based upon the time of accrual provided in subdivision 1, paragraph (c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all actions pending on or commenced on or after that date.
new text end