Narrative Opinion Summary
In this case, the plaintiff, the operator of a laundry business, appealed the trial court's decision that granted summary judgment in favor of the defendants—local government Angier and a non-profit fire department—on negligence and breach of implied warranty of merchantability claims. The plaintiff alleged that water supplied by Angier, contaminated due to hydrant flushing by the fire department, caused damage to clothing. The trial court granted summary judgment on negligence claims due to statute of limitations issues, but the appellate court reversed the summary judgment on the breach of warranty claim. The court highlighted that water sales by municipalities are proprietary activities subject to the U.C.C., which carries a four-year statute of limitations. Nonetheless, due to Angier's status as a local government, claims are limited to a two-year period preceding the lawsuit based on North Carolina law. The appellate court affirmed the negligence claim dismissals but reversed and remanded the warranty claim against Angier for further proceedings, acknowledging the limitations of damage recovery to the two-year span. The ruling was affirmed in part and reversed and remanded in part, with concurrence from the Chief Judge and another judge.
Legal Issues Addressed
Application of Local Government Statute of Limitationssubscribe to see similar legal issues
Application: Claims against local government entities concerning contracts are subject to a two-year statute of limitations.
Reasoning: North Carolina law imposes a two-year statute of limitations for claims against local government entities concerning contracts or liabilities arising from such contracts (N.C. Gen. Stat. 1-53).
Implied Warranty of Merchantability under the U.C.C.subscribe to see similar legal issues
Application: The court reversed the summary judgment on the implied warranty of merchantability claim, noting that the sale of water by a municipality is a proprietary function subject to the U.C.C.
Reasoning: Regarding the implied warranty of merchantability, the court noted that the sale of water by a municipality is a proprietary function subject to the Uniform Commercial Code (U.C.C.) and not governmental immunity.
Negligence and Statute of Limitationssubscribe to see similar legal issues
Application: The court affirmed the summary judgment on the negligence claims, indicating that the claims were barred by the statute of limitations.
Reasoning: Jones argued his negligence claims were not barred by the statute of limitations, referencing a similar case involving sewer issues in a property serviced by the City of Sanford.
Statute of Limitations for Implied Warranty Claimssubscribe to see similar legal issues
Application: The statute of limitations for breach of warranty claims against a municipality, under the U.C.C., is four years, limiting the plaintiff's ability to claim damages.
Reasoning: Under the U.C.C., an implied warranty of merchantability exists if the seller is a merchant for that type of goods, and the statute of limitations for breach of warranty is four years from delivery.
Summary Judgment Standardssubscribe to see similar legal issues
Application: Summary judgment is appropriate when there is no genuine issue of material fact.
Reasoning: The court determined that summary judgment is appropriate when there is no genuine issue of material fact, which was not established in the context of the breach of warranty claim.