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Palazzo v. Harvey

Citation: 380 F. Supp. 3d 723Docket: No. 3:18-cv-00709

Court: District Court, M.D. Tennessee; May 6, 2019; Federal District Court

Narrative Opinion Summary

In this case, the court addresses a Motion for Summary Judgment filed by Sun Company Builders, who argue that a lawsuit filed by JoAnn Palazzo regarding construction defects was untimely under Tennessee's statute of repose. The dispute centers around the construction of a horse arena and barn/stable, with Sun Company claiming the project was completed by July 31, 2014, while Palazzo argues issues like mold and rust were noticed later, leading to a complaint filed exactly four years later. The court finds material factual disputes about the completion date and whether the projects should be considered separate, which preclude summary judgment. Additionally, the court considers whether Palazzo's claim is barred by a three-year statute of limitations for injury to property, which she contests on grounds of concealment. Ultimately, the court denies the motions for summary judgment, emphasizing unresolved factual issues, particularly regarding the project's substantial completion and the potential tolling of the statute of limitations if defendants concealed the defects. Palazzo’s request to file a sur-reply is deemed moot given the court's decision to maintain the case for trial on these contested facts.

Legal Issues Addressed

Concealment of Cause of Action

Application: The defense of statute of repose does not apply if the defendant concealed the cause of action, preventing summary judgment.

Reasoning: The statute of repose defense cannot apply if a party wrongfully conceals a cause of action.

Statute of Limitations under Tenn. Code Ann. § 28-3-105(1)

Application: The defendants' claim that the statute of limitations bars Palazzo's claim due to discovery of defects in June 2015, but the court finds the issue inapplicable at this stage.

Reasoning: Defendants contend that Palazzo's claim is barred by the three-year statute of limitations under Tenn. Code Ann. § 28-3-105(1), citing her affidavit stating she discovered discoloration of the arena's structural members around June 2015.

Statute of Repose under Tenn. Code Ann. 28-3-202

Application: The statute mandates that actions for deficiencies in construction must be initiated within four years of substantial completion, but the actual completion date remains disputed.

Reasoning: Palazzo is seeking damages related to improvements made to real property, governed by a statute of repose, Tenn. Code Ann. 28-3-202, which mandates that all actions for deficiencies in design, construction, or related services must be initiated within four years of the substantial completion of the improvement.

Substantial Completion Definition

Application: The determination of the substantial completion date is crucial as it affects the statute of repose, and there is a dispute whether the arena and stable should be treated as separate projects.

Reasoning: The date of substantial completion is critical, as it establishes a fixed period beyond which causes of action cannot arise, regardless of when an injury or its discovery occurs.

Summary Judgment Standard

Application: The court finds that genuine issues of material fact exist regarding the actual completion date of the construction project, which makes summary judgment inappropriate.

Reasoning: The court finds that genuine issues of material fact exist regarding the actual completion date of the construction project, making summary judgment inappropriate.