McCaulley v. C L Enters.
309 Neb. 141
| Neb. | 2021Background
- In 2006 the McCaulleys acted as their own general contractor and hired multiple independent contractors for discrete portions of a new home (plumbing, roofing, masonry, floors, windows/doors, waterproofing, retaining wall).
- They moved into the home in late Feb/early Mar 2008 and filed suit on Feb 7, 2012 against 12 contractors, alleging negligence and implied-breach-of-warranty claims (express warranties were not pleaded).
- Seven contractors at issue moved for summary judgment under Neb. Rev. Stat. § 25-223 (four-year limitations), asserting the limitations period began on the date each contractor substantially completed its individual work.
- The district court found no dispute as to each contractor’s substantial completion date, held the § 25-223 period began on each contractor’s completion date, granted summary judgment as time-barred, and denied the homeowners’ oral motion to file a fourth amended complaint to add an express warranty-to-repair claim.
- The McCaulleys appealed, arguing the limitations period should run from substantial completion of the entire home and that denial of leave to amend was an abuse of discretion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the § 25-223 4-year limitations period begin when a homeowner contracts separately with multiple trades? | Limitations should run from substantial completion of the entire home (late Feb/early Mar 2008). | Limitations run from the substantial completion date of each contractor's separate contracted work. | Court: Where owner hired separate contractors for discrete projects, § 25-223 runs from each contractor's substantial completion of its project; claims were time-barred. |
| Whether denial of leave to amend (to add an express warranty-to-repair claim) was an abuse of discretion | Amendment was warranted after Adams concurrence; could save claims that accrue post-completion. | Request was untimely, prejudicial, and potentially futile given summary judgment proceedings; defendants had prepared on operative pleading. | Court: Denial not an abuse of discretion — amendment would cause undue delay and unfair prejudice; affirmed. |
Key Cases Cited
- Fuelberth v. Heartland Heating & Air Conditioning, 307 Neb. 1002 (2020) (explains divisible vs. indivisible construction projects and that § 25-223 begins to run at substantial completion of each separable project)
- Adams v. Manchester Park, 291 Neb. 978 (2015) (applies substantial-completion rule to homebuilder/general-contractor claims; concurrence discussed warranty-to-repair accrual)
- Murphy v. Spelts-Schultz Lumber Co., 240 Neb. 275 (1992) (earlier application of substantial-completion accrual rule for defective workmanship)
- Witherspoon v. Sides Constr. Co., 219 Neb. 117 (1985) (limitations runs from substantial completion where general contractor/homebuilder is defendant)
- Durre v. Wilkinson Development, 285 Neb. 880 (2013) (discusses application of § 25-223 to construction-defect claims)
