The law as to construction and when a builder can be sued is dependent upon what claims are alleged against the builder. In short, for breach of written contract and warranty the Statute of Limitation is 5 years. For tort claims, such as negligent defective construction, or fraud, the Statute of Limitations is 2 years. Fortunately, however, Oklahoma has a Statute of Repose, which is a law that places a ten (10) year sunset date upon when a builder can be sued for torts such as negligence in the building construction. Specifically, the Statute of Repose states:
No action in tort to recover damages
(i) for any deficiency in the design, planning, supervision or observation of construction or construction of an improvement to real property,
(ii) for injury to property, real or personal, arising out of any such deficiency, or
(iii) for injury to the person or for wrongful death arising out of any such deficiency, shall be brought against any person owning, leasing, or in possession of such an improvement or performing or furnishing the design, planning, supervision or observation of construction or construction of such an improvement more than ten (10) years substantial completion of such an improvement.
This statute has been repeatedly upheld and cited by the courts in defending builders against claims that are brought 10 or more years past the completion of the construction. For example, in a 2009 case, the Oklahoma Supreme Court ruled in Kirby v. Jean’s Plumbing Heat & Air that the Statute of Repose barred a plaintiff from suing the contractor in 2007 for an allegedly defective sewer line that was installed in 1996. The court explained the significance of the Statute of Response:
“a statute of repose… sets an outer boundary in time beyond which no cause of action may arise for conduct that would have otherwise been actionable”.
Protect Your Construction Business from Long-Term Liability
Understanding the difference between statutes of limitation and statutes of repose is critical for builders, contractors, and developers operating in Oklahoma.
If you are facing a construction defect claim—or want to proactively manage liability exposure—the experienced Oklahoma construction attorneys at Rieger Sadler Joyce LLC represent builders and construction professionals throughout Oklahoma City metro area.
Bottom line is that the window of opportunity for a plaintiff to sue a builder for defective of negligent construction extends up to ten (10) years past the substantial completion of construction. While a builder may be able to defend on the basis of contract, very often the plaintiff will sue on negligence as well, and the courts will hear those claims. Therefore, for planning purposes of insurance coverage and risks considerations, plan on a 10-year window to be prepared to defend.
Written By: Sean Rieger | Attorney at Law
Rieger Sadler Joyce LLC | Oklahoma City, OK | Norman, OK
FAQs
What is the statute of limitations for construction defects in Oklahoma?
For breach of written contract or warranty claims, the statute of limitations is generally five (5) years. For tort claims such as negligence or fraud, it is typically two (2) years.
What is a statute of repose?
A statute of repose sets an absolute deadline for filing certain types of claims, regardless of when the defect is discovered. In Oklahoma, construction-related tort claims generally cannot be brought more than ten (10) years after substantial completion.
What did Kirby v. Jean’s Plumbing Heat & Air decide?
In Kirby v. Jean’s Plumbing Heat & Air, the Oklahoma Supreme Court upheld the 10-year statute of repose, barring a lawsuit filed more than ten years after installation of a sewer line.
Does the 10-year statute of repose apply to contract claims?
No. The statute of repose specifically applies to tort claims. Contract and warranty claims are governed by separate statutes of limitation.
Why should builders plan for a 10-year exposure period?
Because negligence-based claims may be filed up to ten years after substantial completion, builders should maintain insurance coverage and documentation accordingly.
THIS IS MARKETING MATERIAL. THIS IS ONLY GENERAL INFORMATION AND IS NOT TO BE USED AS LEGAL ADVISE OR TO ADDRESS FACT-SPECIFIC LEGAL ISSUES. YOU SHOULD ALWAYS CONSULT AN ATTORNEY DIRECTLY FOR LEGAL ADVICE. WE ASSUME NO LIABILITY AS TO THE USE OF THIS MATERIAL.
