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Fidelity & Deposit Co. of Maryland v. Celotex Corp.

Citations: 221 Va. 698; 273 S.E.2d 542; 1981 Va. LEXIS 196Docket: Record No. 790082

Court: Supreme Court of Virginia; January 16, 1981; Virginia; State Supreme Court

Narrative Opinion Summary

This case involves The Celotex Corporation's attempt to recover payment for roofing materials from Fidelity and Deposit Company of Maryland, following Econo-Roof, Inc.'s non-payment. Celotex's claim was initially filed after a voluntary nonsuit of a prior action and was governed by Virginia Code § 11-23, which stipulated a one-year statute of limitations. The legal question concerned whether the tolling provision under Virginia Code § 8.01-229(E)(3) applied, allowing Celotex additional time to file its action. The court found that since the claim accrued before October 1, 1977, the tolling provision did not apply, as it only pertains to causes arising after that date. Consequently, the action, filed on December 13, 1977, was outside the allowable period. The court reversed the lower court's decision, which had overruled Fidelity's statute of limitations plea, and entered judgment in favor of Fidelity and Deposit Company of Maryland, effectively barring Celotex's claim as time-barred.

Legal Issues Addressed

Effect of Voluntary Nonsuit on Statute of Limitations

Application: The court determined that the voluntary nonsuit did not toll the statute of limitations for the action commenced beyond the one-year period.

Reasoning: Celotex argued that its voluntary nonsuit tolled the statute, allowing it to recommence action within six months.

Statute of Limitations under Virginia Code § 11-23

Application: The court applied the one-year statute of limitations from the date the claim arose, as governed by the statute prior to its amendment.

Reasoning: Celotex initiated its action in Chesterfield County on December 13, 1977, which was beyond the one-year statute of limitations stipulated in § 11-23.

Tolling of Statute of Limitations under Virginia Code § 8.01-229(E)(3)

Application: The tolling provision was considered inapplicable as the claim accrued before the cutoff date specified in the statute.

Reasoning: Therefore, the tolling provision of § 8.01-229(E)(3), which applies only to causes accruing after that date, was not applicable.