Rosso v. Hallmark Homes of Minneapolis, Inc.
2014 Minn. App. LEXIS 22
| Minn. Ct. App. | 2014Background
- Rosso homeowners sued Hallmark Homes for moisture-related defects in a house built by Hallmark in spring 1995.
- House was move-in ready by November 14–16, 1995, and a Seller’s Disclosure Statement was signed on November 16, 1995.
- Certificate of occupancy was not issued until January 19, 1996, one day before closing; Hallmark cites tax reasons for the delay.
- Plaintiffs discovered water-damage on November 20, 2005; they later sued for statutory warranty and negligence, later withdrawing the statutory-warranty claim.
- A tolling agreement was reached on September 19, 2006, tolling statutes to that date, but the Rossos filed suit after discovery.
- Court held substantial completion occurred before occupancy certificate and that equitable tolling does not apply to the ten-year repose.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether substantial completion occurred before occupancy certificate. | Rossos contend occupancy certificate governs substantial completion. | Hallmark argues completion is tied to occupancy eligibility and CO issuance. | Substantial completion is based on construction, not CO issuance. |
| Whether the ten-year statute of repose is equitably tolled. | Equity tolls the repose until CO issuance. | Equitable tolling not applicable to statutes of repose. | Statute not equitably tolled; claims barred. |
Key Cases Cited
- Weston v. McWilliams & Assocs., Inc., 716 N.W.2d 634 (Minn. 2006) (defines substantial completion timing in context of statute)
- Amaral v. St. Cloud Hosp., 598 N.W.2d 379 (Minn. 1999) (statutory construction requires giving effect to all provisions)
- Am. Family Ins. Grp. v. Schroedl, 616 N.W.2d 273 (Minn. 2000) (statutory interpretation guidance)
- In re Collier, 726 N.W.2d 799 (Minn. 2007) (de novo review of law on summary judgment)
- State Farm Fire & Cas. v. Aquila Inc., 718 N.W.2d 879 (Minn. 2006) (statute-of-limitations/applications of law reviewed de novo)
- Sartori v. Harnischfeger Corp., 432 N.W.2d 448 (Minn. 1988) (equitable tolling policy considerations in repose context)
- Johnson v. Mut. Serv. Cas. Ins. Co., 732 N.W.2d 340 (Minn.App. 2007) (addressing equitable tolling in context of appellate decision)
- Austin v. Austin, 481 N.W.2d 884 (Minn.App. 1992) (real party in interest; timing of bringing claims)