337 P.3d 925
Or. Ct. App.2014Background
- Plaintiffs sued defendants (including All Star Custom Homes, LLC) for negligence and nuisance based on alleged construction defects in their home.
- The trial court granted summary judgment for All Star, concluding plaintiffs’ claims were time-barred under ORS 12.080(3) (six‑year limitation for injury to real property) and entered dismissal.
- Plaintiffs appealed, arguing the trial court erred by treating ORS 12.080(3) as not incorporating a discovery rule.
- After briefing, the Oregon Supreme Court decided Rice v. Rabb, which held that ORS 12.080(4) (six‑year limitation for injury to personal property) incorporates a discovery rule.
- Plaintiffs argued Rice’s reasoning requires the same result for ORS 12.080(3); the appellate court agreed.
- The court reversed and remanded because All Star offered no evidence that plaintiffs discovered or should have discovered their claims more than six years before filing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ORS 12.080(3) incorporates a discovery rule | Accrual is delayed until plaintiff knew or reasonably should have known elements of negligence/nuisance | Statute begins running at the time of injury; no discovery rule applies | Court held ORS 12.080(3) incorporates a discovery rule under ORS 12.010 |
| Whether plaintiffs’ claims were time‑barred | Claims accrued when discovered; therefore timely | Claims accrued more than six years before filing | Reversed summary judgment; All Star failed to show discovery occurred over six years earlier |
Key Cases Cited
- Rice v. Rabb, 354 Or. 721, 320 P.3d 554 (Or. 2014) (held ORS 12.080(4) incorporates a discovery rule and applied ORS 12.010 accrual reasoning)
- Berry v. Branner, 245 Or. 307, 421 P.2d 996 (Or. 1966) (articulated discovery‑rule accrual standard applied under ORS 12.010)