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NW AR Conservation Authority v. Crossland Heavy Contractors

Citation: Not availableDocket: 21-2498

Court: Court of Appeals for the Eighth Circuit; August 30, 2022; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In the case before the Eighth Circuit Court of Appeals, the Northwest Arkansas Conservation Authority, a public entity tasked with wastewater management, initiated legal action against Crossland Heavy Contractors, Inc. and Fidelity Deposit Company of Maryland due to alleged construction deficiencies resulting in pipeline failures. The Authority's lawsuit, filed nearly a decade after the project's completion, was dismissed as time-barred under statute limitations and repose laws. The Authority argued for the application of the doctrine of nullum tempus occurrit regi, which traditionally exempts sovereign entities from statutory time constraints. However, the court affirmed the lower court's decision, ruling that the Authority's claims were based on proprietary rather than public rights, thereby disqualifying them from nullum tempus. The decision considered Arkansas's legal precedent, which restricts the doctrine's application to true sovereign activities, and not to subordinate public entities enforcing private rights. Consequently, the Authority's breach of contract and related claims did not qualify for exemption, and the court underscored the necessity for public entities to act diligently within prescribed legal timeframes when asserting proprietary interests. The court's ruling highlights the nuanced distinctions between public and proprietary functions in determining the applicability of common-law doctrines to public entities.

Legal Issues Addressed

Application of Nullum Tempus Occurrit Regi

Application: The court determined that the doctrine of nullum tempus occurrit regi does not apply to the Authority's claims because they are based on proprietary rights rather than public rights.

Reasoning: The district court rejected this argument, determining that the Authority was enforcing proprietary rights, not public rights, thus the claims were time-barred.

Arkansas Interpretation of Nullum Tempus

Application: The Arkansas Supreme Court limits the application of nullum tempus to sovereign entities and does not extend it to public corporations or agencies.

Reasoning: Although the Arkansas Supreme Court acknowledges nullum tempus, it limits its application to the sovereign, excluding public corporations or agencies.

Public vs. Proprietary Rights

Application: The court emphasized that claims based on proprietary rights do not qualify for nullum tempus and are subject to limitations periods.

Reasoning: The Authority's case against Crossland and Fidelity is based on private-law claims, specifically breach of contract, negligence, breach of warranty, and products liability, aimed at addressing failures in Crossland’s performance.

Statutes of Limitations and Repose

Application: The court held that the Authority's claims are time-barred under the applicable statutes of limitations and repose, as the lawsuit was filed significantly after the construction was completed.

Reasoning: The construction contract awarded to Crossland was completed in June 2010, but the Authority did not sue until January 2020, despite significant pipeline failures and a consultant’s report attributing the issues to Crossland’s inadequate work.