An Overview of Minnesota Statutes of Limitation and Repose in ...

The Statutes of Limitation and Repose outline the time-frames within which a construction defect action must be brought.? A claim not filed or properly asserted within the applicable time period is considered ?time barred?, or ?stale?, and is subject to dismissal in its entirety.? A few important things to remember about Statutes of Limitation and Repose are that:

1. Time Periods are Short and sometimes Ambiguous.

2. Always consult an attorney if you are not POSITIVE about how to calculate them.? Any reputable attorney will do a free statute of limitation analysis for you.

3. Our law firm turns down more cases than we take, and the primary reason is missed statutes of limitation.

There are four main types of construction defect claims brought in Minnesota, each with its own Statute of Limitation requirements:

1.? ?327A? Statutory Warranty Claims for homes or condo/townhome units: A homeowner has only 6 months within which to give written notice of the defect to the builder once the defect has manifested itself.? An action must be commenced within two years of when the defect was known, or should have been known.

2.? ?515B? Express and Implied Warranty Claims under the Minnesota Common Interest Ownership Act:

a. On homes or condo/townhome units, the statute runs (regardless of anyone?s knowledge of the claim) 6 years from the earlier of:

(i)Transfer of title to the first purchaser; or

(ii)The time the purchaser takes possession of the unit.

b. On common elements in a condo/townhome community:? The statute runs (regardless of anyone?s knowledge of the claim) 6 years from the later of:

(i) Completion of the common element;

(ii) The first unit sale; or

(iii) Termination of Declarant control.

**These time periods can be shortened by the Declarant to as little as 2 years, so complete review of the CC&Rs, purchase contracts, etc. is needed.**

3. ?General Negligence or Breach of Contract Claims

a.? Negligence: 2 years after the manifestation of the defect.

b.? Breach of Contract: 2 years after the builder fails to fulfill the warranty.

4. ?Fraud? or Misrepresentation:? 6 years after discovery of the facts constituting the misrepresentation.

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A few more general principles to consider when calculating and evaluating Statutes of Limitation:

1. The clock typically starts when you ?knew or should have known? of the defect. That is, when the damage starts to manifest, even if you don?t know the cause yet.

2. You may, or may not get a separate 2 year statute period for each defect, or even for each location of the defect.

3. ?Working with the builder? may, or may not toll (pause) the statutes of limitation.

Statutes of Repose apply to bar a claim whether you know about the defect(s) or not. The Statute of Repose is considered an ?absolute? time bar. Again, each type of legal claim comes with its own calculation:

1.? ?327A? Warranty claims: The time periods start running upon unit purchase or occupancy, whichever is earlier.

???? 1 year ? general workmanship and materials

???? 2 years ? electric, plumbing, HVAC, etc.

???? 10 years ? ?major construction defects?

2.? ?515B? MCIOA common element warranty claims: 6 years from the later of: (i) completion of the common element; (ii) the first unit sale; or (iii) termination of Declarant control.? However, this can be shortened ?by a community?s Declarant to as little as 2 years in the project documents, so a complete review of CC&Rs, purchase and sale agreements, etc. is necessary.

3.? Contract, Negligence, or Fraud Claims: 10 years from ?substantial completion? ? when the improvement could be occupied or used for its intended purpose.? Can be extended up to 12 years when the defect manifests in year 9 or 10.

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