Fuelberth v. Heartland Heating & Air Conditioning
307 Neb. 1002
| Neb. | 2020Background
- Troy and Julie Fuelberth hired Heartland to design, construct, and install an interior in-floor geothermal system and an exterior icemelt driveway system for a farm shop; primary Heartland contact was Mike Wiederin.
- Heartland provided a written estimate describing the job as multiple "zones," including an "ICE MELT" zone, for a single total price; the parties’ agreement was oral but treated as a package deal by plaintiffs.
- Fuelberth testified the interior system was at least partially working by January 2012, while the exterior system was not operational until Wiederin poured glycol and completed start-up work sometime between November 1 and 12, 2012.
- The Fuelberths sued on November 14, 2016, alleging negligent construction and breach of implied warranty; they claimed exterior failure around November 15, 2012 and discovered interior failure in summer 2016.
- The district court granted Heartland summary judgment, concluding §25-223’s 4-year limitations period began on substantial completion (interior by Jan 2012; exterior by Nov 12, 2012), and that the November 2016 complaint was time-barred.
- The Nebraska Supreme Court reversed, finding genuine factual disputes about whether the contract was divisible or indivisible and when the project as a whole was substantially complete, and that the complaint could be timely if accrual occurred Nov 12, 2012.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the §25-223 statute of limitations accrue — at substantial completion of each system or of the entire project? | The systems functioned together; the parties agreed to a package, so accrual should await substantial completion of whole project. | Each system was separately complete (interior by Jan 2012; exterior by Nov 12, 2012), so claims accrued earlier and are time-barred. | Whether the contract was divisible is a factual question; a reasonable juror could find the agreement indivisible, so accrual could wait until the whole project was substantially complete. |
| Were the systems (or project) substantially complete by the dates Heartland asserts, making the complaint untimely? | Exterior was not operational until Wiederin’s November 1–12, 2012 start-up; interior was not fully functioning; thus project completion may be Nov 12, 2012 or later. | Testimony shows interior was substantially complete by Jan 2012 and exterior by Nov 12, 2012, so claims filed Nov 14, 2016 are untimely. | Genuine issues of material fact exist about substantial completion; a factfinder could conclude project was not substantially complete until Nov 12, 2012, and under §25-2221 the Nov 14, 2016 complaint would be timely. |
Key Cases Cited
- Adams v. Manchester Park, 291 Neb. 978 (2015) (statute of limitations under §25-223 runs from substantial completion when claim is defective workmanship)
- Murphy v. Spelts‑Schultz Lumber Co., 240 Neb. 275 (1992) (§25-223 governs negligent construction and breach of warranty claims against contractors)
- Honstein Trucking v. Sandhills Beef, Inc., 209 Neb. 422 (1981) (contract divisibility is a question of fact)
- Gaspar v. Flott, 209 Neb. 260 (1981) (contract divisibility determined from instrument, subject matter, and parties’ conduct)
- Reichert v. Mulder, 121 Neb. 11 (1931) (contract susceptible of division is divisible and severable)
- George P. Rose Sodding & Grading Co. v. Dennis, 195 Neb. 221 (1976) (§25-2221 time-computation rule applied to determine timely filing under statute of limitations)
