State v. Perini Corp., 221 N.J. 412 (2015). Three years ago, the Appellate Division issued an opinion that addressed whether the construction statute of repose, N.J.S.A. 2A:14-1.1a, runs from the date of substantial completion of an entire project or from the date of completion of a phase or component of that project. There was also an issue as to whether the statute of repose applies to claims of manufacturing defects in a product used in a high temperature hot water system that was part of the project.
Yesterday, after having granted leave to appeal, the Supreme Court weighed in, issuing a unanimous opinion by Judge Cuff. The Court concluded that since the hot water system served multiple parts of the project (a prison, which was being built in phases), the statute of repose did not begin to run “until all buildings served by the improvement have been connected to it.” Judge Cuff also ruled that the statute of repose does not apply to “claims relating solely to manufacturing defects in a product used in” the hot water system. “[M]anufacturers of standardized products and sellers of such products are not subject to the statute of repose, but rather are covered by the statute of limitations applicable to the [Product Liability Act, N.J.S.A. 2A:58C-1 to -11].” The effect of the Court’s ruling was to affirm as modified the opinion of the Appellate Division.
Judge Cuff’s opinion not only states the result clearly and states the reasons for that result, but also offers an excellent history of the statute of repose and the reasons behind it. It will be a useful resource for anyone who deals with construction cases.