Altenbaugh v. Benchmark Builders Inc.
271 A.3d 188
Del.2022Background
- Ryan and Amee Altenbaugh purchased a Benchmark-built home in Newark in 2008; Ryan became sole owner in 2011; Marisa was added as co-owner in 2017.
- In January 2011 Ryan sent a letter to Benchmark describing an "apparent construction defect" in the basement: about 15 ft by 4 ft of wall soaked and stained, insulation stuck to the wall, and concern that structural members were compromised.
- Benchmark inspected, identified a defective weep screed as the source, and told Ryan the problem was limited to one small area and repaired it; the Altenbaughs did not report further problems until 2019.
- In August 2019 contractors discovered rotted wood; a Building Moisture Survey revealed systemic water intrusion and flashing failures; the Altenbaughs sued Benchmark and subcontractor DRSC on November 6, 2019.
- Defendants moved for summary judgment under Delaware’s three-year statute of limitations (10 Del. C. § 8106), arguing the claim accrued or inquiry notice arose no later than 2011; after discovery the Superior Court granted summary judgment as time-barred and this Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the three-year limitations period was tolled under the time-of-discovery/inquiry-notice rule so the 2019 suit was timely | Altenbaugh: prior leaks were "limited," they lacked construction expertise, and reasonably relied on Benchmark’s 2011 evaluation, so they were not on inquiry notice until 2019 | Benchmark/DRSC: the 2011 letter describing a 15x4 ft soaked wall put Ryan on inquiry notice in 2011; any further investigation then would have revealed the defects | Court held Ryan was on inquiry notice in 2011; the statute was not tolled to 2019 and the claim is time-barred |
Key Cases Cited
- Homeland Ins. Co. of N.Y. v. CorVel Corp., 197 A.3d 1042 (Del. 2018) (summary judgment reviewed de novo)
- Isaacson, Stolper & Co. v. Artisans’ Sav. Bank, 330 A.2d 130 (Del. 1974) (negligent construction claims generally accrue at time of construction)
- Layton v. Allen, 246 A.2d 794 (Del. 1968) (explains time-of-discovery rule and tolling where injury is inherently unknowable or fraudulently concealed)
- Wal-Mart Stores, Inc. v. AIF Life Ins. Co., 860 A.2d 312 (Del. 2004) (defines inquiry notice as discovery of facts that would prompt a reasonable person to investigate)
- Coleman v. Pricewaterhousecoopers, LLC, 854 A.2d 838 (Del. 2004) (courts consider "red flags" that would prompt further inquiry)