138 So. 3d 287
Ala.2013Background
- AEC sued Shuler Brothers in January 2012 for work and labor and breach of contract over unpaid repairs to a chipper motor.
- Shuler Brothers answered in March 2012 and asserted a negligence claim and lost income damages.
- Shuler Brothers filed a third-party complaint against the Utilities Board in March 2012 seeking recovery for losses and $145,545 for repairs, alleging the Board's negligent maintenance of power lines caused the motor’s failures.
- The third-party complaint described December 2009 to March 2010 motor failures, repairs by AEC, and a March 2010 line problem investigation by Utilities Board linemen who replaced loose connectors.
- Utilities Board moved to dismiss in April 2012 on statute-of-limitations grounds, arguing a two-year limit for negligence and that discovery did not toll the period; it asserted the breach claim sounded in tort.
- Shuler Brothers amended the complaint in June 2012 to add a breach-of-contract claim; the court denied the motion to dismiss, and the case was appealed for permissive review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the negligence claim bar under the two-year statute of limitations? | Shuler Brothers argues discovery tolls no rule; actual injury occurred later, not March 11, 2010. | Utilities Board contends accrual and no discovery rule; all damage occurred by March 11, 2010, so March 27, 2012 filing is untimely. | Negligence claim barred; accrual occurred by March 11, 2010. |
| Does the breach-of-contract claim sound in contract and fall within a six-year period? | Implied contract for electrical services existed; breach alleged in performance of contract with safe operation. | Claim sounds in tort under § 6-2-38(l) and is time-barred. | Breach claim sounds in implied contract; timely under six-year limitation; denial of motion to dismiss proper. |
Key Cases Cited
- Rumford v. Valley Pest Control, Inc., 629 So.2d 623 (Ala.1993) (injury accrual timing for tort claims)
- Singer Asset Finance Co. v. Connecticut General Life Insurance Co., 975 So.2d 375 (Ala.Civ.App.2007) (no discovery rule tolling for negligence)
- Henson v. Celtic Life Ins. Co., 621 So.2d 1268 (Ala.1993) (no discovery rule for negligence actions)
- Berry v. Druid City Hospital Board, 333 So.2d 796 (Ala.1976) (rejected discovery-rule theory for certain claims; contract emphasis)
- Ex parte Walker, 97 So.3d 747 (Ala.2012) (Rule 12(b)(6) framework and reliance on pleaded allegations)