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Krist Oil Company v. Semco Energy Inc
367243
Mich. Ct. App.
Mar 20, 2025
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Background

  • The case involves multiple plaintiffs (Krist Oil Company, Quality Rentals of Houghton, and others) alleging injury not directly caused by a defective or unsafe condition of an improvement to real property constructed by a contractor (MJO Contracting, Inc.)
  • SEMCO Energy, Inc. and MJO Contracting, Inc. are key defendants, with SEMCO as a cross-plaintiff and MJO as a cross-defendant.
  • The dispute centers on Michigan's statute of repose, MCL 600.5839(1), which limits the period for claims arising from defective or unsafe conditions in improvements to real property made by contractors.
  • The trial court ruled in a manner consistent with the statute’s text, but that decision conflicted with controlling appellate precedent.
  • The Court of Appeals reversed the trial court, applying the precedent set by Abbott v John E. Green Co., even though it questioned the correctness of that precedent.
  • The concurring opinion critiques Abbott’s logic and calls for the Michigan Supreme Court to revisit the issue.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Applicability of Statute of Repose Statute of repose should not apply because the injury did not arise from a defective or unsafe condition of the improvement itself Statute applies to claims arising from contractor’s workmanship, not just finished improvement Statute of repose applies as per Abbott; Court reverses trial court

Key Cases Cited

  • Abbott v. John E. Green Co., 233 Mich App 194 (repose statute applies broadly to claims about workmanship, not just finished improvement)
  • Pitsch v. ESE Mich, Inc., 233 Mich App 578 (distinguishes between tangible improvements and intangible labor)
  • Pendzsu v. Beazer East, Inc., 219 Mich App 405 (statute of repose protects contractors from stale claims, defines improvement)
  • Witherspoon v. Guilford, 203 Mich App 240 (prior case discussing purpose and limits of repose statute)
  • Ostroth v. Warren Regency, GP, 474 Mich 36 (overrules prior limitations, cited for clarifying repose statute application)
  • O’Brien v. Hazelet & Erdal, 410 Mich 1 (interprets purpose of statute of repose for improvements to real property)
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Case Details

Case Name: Krist Oil Company v. Semco Energy Inc
Court Name: Michigan Court of Appeals
Date Published: Mar 20, 2025
Docket Number: 367243
Court Abbreviation: Mich. Ct. App.