385 S.W.3d 880
Ark. Ct. App.2011Background
- International purchased ACQ-treated plywood from Hoover, via Osmose, for subflooring on school buses between Aug 2002 and Aug 2003.
- After installation, corrosion issues were reported on aluminum wheelchair tracks and mounting bolts/lifts.
- International filed suit on Jul 31, 2006, asserting breach of warranty, negligence, strict liability, and a breach-of-contract claim against Hoover.
- Osmose moved for summary judgment (Dec 15, 2008) arguing the three-year Arkansas Product Liability Act limitations barred the claims.
- Hoover joined (Jan 20, 2009) arguing three-year PL Act limit and a one-year UCC-based limit for warranty.
- The circuit court granted summary judgment (Aug 31, 2010), finding International’s claims were barred by the three-year statute; remedial actions and knowledge before Aug 2003 supported the finding.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are International's claims barred by statute of limitations? | International | Osmose/Hoover | Yes; three-year PL Act applies, barring claims filed after limitations period. |
| Did discovery show awareness of corrosion more than three years before filing? | International | Osmose/Hoover | No; evidence shows knowledge or reasonably discoverable connection by 2002, triggering accrual. |
| Should warranty claims be governed by UCC 4-2-725 or PL Act 16-116-103? | International | Osmose/Hoover | PL Act controls; warranty claims fall within product liability limitations. |
| Is the one-year invoice-period limitation against Hoover dispositive? | International | Hoover | Moot; PL Act is controlling, and claims still barred. |
Key Cases Cited
- Martin v. Arthur, 339 Ark. 149 (1999) (discovery rule for products liability accrual)
- Follette v. Wal-Mart Stores, 41 F.3d 1234 (8th Cir. 1994) (statute-of-limitations accrual and product liability scope)
- Wagner v. Gen. Motors Corp., 370 Ark. 268 (2007) (fact issues can bar summary judgment where statute may apply)
- Alexander v. Twin City Bank, 322 Ark. 478 (1995) (general limitations and accrual standards)
- Tony Smith Trucking v. Woods & Woods, Ltd., 75 Ark.App. 134 (2001) (summary judgment and statute of limitations guidance)
- Harvest Rice, Inc. v. Fritz & Mertice Lehman Elevator & Dryer, Inc., 365 Ark. 573 (2006) (standard for assessing material facts in summary judgment)