In the first case, none of the architects involved in the design of the auditorium is alive today but the architectural firm is being sued. The plans, specifications, and contracts may have been lost or destroyed. Old building codes, essential to the defense cannot be found. In the grain elevator case, the plaintiff in effect alleged that the engineer should have created in 1934 a ventilation system based on 1959 standards and technology. Architects, engineers, and contractors have no control over an owner whose neglect in maintaining an improvement may cause dangerous or unsafe conditions to develop over a period of years. They cannot prevent an owner from using an improvement for purposes for which it was not designed. Nor can they prevent the owner of a building from making alterations or changes which may, years afterward, be determined unsafe or defective and appear to be a part of the original improvement. Your Committee believes that as a matter of good law, in fairness and equity to the architect, designer, engineer and builder, it is proper to enact legislation such as H.R. 6527 to establish a reasonable time limit within which suits for damages alleging defective or unsafe conditions, attributable to their actions, can be brought. STATE ENACTMENTS The problem which this legislation is designed to remedy has been recognized throughout the United States. Since 1960, 30 states have enacted statutes of limitation similar to that proposed in this bill. In addition, the legislatures in 10 other states are considering such legislation. Your Committee finds that the provisions of the bill are reasonably comparable to legislation enacted in the states. COMMITTEE AMENDMENTS The bill as introduced provided that any action to recover damages for personal injury or injury to real or personal property, or for wrongful death or for contribution or indemnity as a result or injury or death, such action must be commenced within 2 years after the date of the injury or death and that the cause of action must have accrued within 4 years of the date the improvement to the real property was substantially completed. The Committee amendment other than technical changes, was directed toward having the terms of the bill harmonize with the existing provisions of law on limitations of actions (D.C. Code, sec. 12-301) and to extend the time from 4 to 5 years after the date of substantial completion of the improvement during which period a cause of action might accrue. The effect of this amendment is that if a cause of action accrues at any time up to and including the last day of the 5 year period from the date the improvement was substantially completed, an action. in damages for injury to real or personal property could be filed within 3 years (D.C. Code, sec. 12-301(3)); in the case of personal injury an action could be filed within 3 years (D.C. Code, sec. 12301(8)); and in the case of wrongful death, an action could be filed. within one year (D.C. Code, sec. 16-2702). For the establishment of the date on which the time limitation was to begin to run, the bill provides that the term "substantially completed" shall mean (1) the date on which the improvement is first used or (2) the date on which the improvement is first available for use, whichever occurs first. In the first case, the owner of an improvement may desire to use the property before completion of all details required under the contracts or agreements between the parties involved in the design and construction. The 5 year limitation would begin to run from the date of such first use by the owner. In the second case, the owner for reasons of his own convenience, may delay use of the improvement for some period after physical completion. The 5 year limitation would begin to run on such date as the owner and other parties agreed that the improvement had been completed in accordance with all contracts or agreements concerning it, including any agreed changes. . The limitation on actions provided in the bill does not apply to or affect the owner's contract or the warranties of an architect, contractor, or engineer in relation to the improvement. Similarly, the limitations do not apply to any action which may be brought against the owner or person in actual possession or control of such improvement. for injury or death, because of a defective or unsafe condition in the improvement. The terms of the bill apply only to those actions which are brought following the date of enactment, thus preserving any existing actions. COMMITTEE HEARINGS At Committee hearings, your Committee received testimony and statements from representatives of organizations whose members were interested in. the legislation. Among those organizations represented at the hearing were the following: The Potomac Valley Chapter of the American Institute of Architects; Associated Builders and Contractors, Metropolitan Washington Chapter; The Washington Building Congress; the Washington Metropolitan Chapter of the American Institute of Architects; the National Society of Professional Engineers; the Consulting Engineers' Council of the United States for Metropolitan Washington; and the District of Columbia Society for Professional Engineers. The report of the Commissioners for the District of Columbia on H.R. 6527 was presented by a representative of the office of the Corporation Counsel for the District of Columbia who indicated that the Commissioners had no objections to the legislation. SECTION BY SECTION ANALYSIS Section 1, subsection (a) of the bill adds a new section to chapter 3, title 12 of the District of Columbia Code which relates to limitation of actions. This new section applies to actions for damages arising out of death or injury caused by defective or unsafe improvements to real property. Subsection (a) (1) provides that, except for the actions described in subsection (b) of the amendment (relating to contracts or to actions against the owner or person in actual possession and control) any action (A) to recover damages for personal injury, injury to real or personal property, or for wrongful death which is the result of a defective or unsafe condition of an improvement to real property and (B) brought for contribution or indemnity as a result of such injury or death, shall be barred unless the action is commenced within the period specified in section (a) (2) of the bill. Subsection (a) (2) of the bill states the time limitation after which such actions are barred as being (A) 2 years from the date such injury or death occurred, or (B) four years from the date the improvement was substantially completed whichever occurs first. These provisions were amended by Committee amendment to harmonize the provisions with the existing statute of limitations provided in the D.C. Code. (D.C. Code, sec. 12-301). Subsection (a)(3) of the amendment is a definition of the term "substantially completed" as used in subsection (a)(2) of the amendment. This definition provides that an improvement to real property shall be considered substantially completed when (A) it is first used or (B) when it is first available for use after having been completed in accordance with the contract or agreement covering the improvement, including any agreed changes to the contract or agreement, whichever situation occurs first. The limitation of time during which an action may be brought would begin to run as of the date the owner of the property begins to use the improvement even though it has not been completed in accordance with the contract. Or, if the owner of the improvement, after agreement among all parties that the contract or agreement and any changes in such contract or agreement have been executed, and the building is available for use, the period of limitation for bringing an action begins to run on such date even though the owner does not occupy the building until some future date. Subsection (b) of the amendment provides that the limitations set forth in subsection (a) of the amendment shall not apply to (1) any action based on express or implied contract, or (2) any action brought against a person who is the owner or in actual possession or control of the real property at the time the defective or unsafe condition caused the injury or death. Subsection (1)(b) of the bill adds a new heading to the table of sections for chapter 3 of title 12. Section 2 of the bill preserves all existing actions described in subsection (a) of the amendment by making the terms of the bill applicable only to actions which are brought after the date of enactment of the proposed legislation. COMMISSIONERS' LETTER The following is the letter from the President of the D.C. Board of Commissioners, expressing the Board's approval of this proposed legislation. GOVERNMENT OF THE DISTRICT OF COLUMBIA, Hon. JOHN L. MCMILLAN, EXECUTIVE OFFICE. Washington, September 28, 1967. Chairman, Committee on the District of Columbia, DEAR MR. MCMILLAN: The Commissioners of the District of Columbia have for report H.R. 6527, H.R. 6678, and H.R. 11544, 90th Congress, substantially identical bills "To amend title 12, District of Columbia Code, to provide a limitation of actions for actions arising out of death or injury caused by a defective or unsafe improvement to real property.' Section 1 of the bills adds a section 310 to title 12 of the District of Columbia Code to bar any action to recover damages for personal injury, injury to real or personal property, or wrongful death allegedly resulting from the defective or unsafe condition of an improvement to real property unless such action is commenced within two years from the date of such injury or death, or four years from the date the improvement was substantially completed, whichever occurs first. An improvement to real property is considered "substantially completed" when it is first used, or is first available for use after having been completed in accordance with the contract or agreement, including any modifications thereof. Subsection (b) of the proposed section 310 provides that the time limitations of subsection (a) shall not apply to any action based on an express or implied contract, or to any action against the owner or person in actual possession or control of the real property at the time the defective or unsafe condition of the improvement complained of caused injury or death. One of the effects of the amendments made by the bills is to preclude litigation based upon the alleged defective or unsafe condition. of an improvement to real property (except as to the owner or person in control or possession thereof) which is not begun within four years of the date of substantial completion of such improvement. Other effects of the proposed amendments are to reduce from three to two years existing statutes of limitations with respect to actions (other than an action against the owner or person in control or possession) seeking to recover damages for personal injury and injuries to real or personal property caused by the defective or unsafe condition of an improvement to real property, and to increase from one year to two years the time within which actions for wrongful death due to the aforesaid conditions may be brought (other than as to an owner or person in control or possession, the limitation for which remains unchanged). The Commissioners offer no objection to the enactment of any of the aforesaid bills. Sincerely yours, WALTER N. TOBRINER, President, Board of Commissioners, D.C. CHANGES IN EXISTING LAW In compliance with paragraph 3 of Rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): CHAPTER 3 OF TITLE 12 OF THE DISTRICT OF COLUMBIA CODE 12-309. Actions against District of Columbia for unliquidated damages; time for notice. 19-310. Actions arising out of death or injury caused by defective or unsafe improvements to real property. § 12-301. Limitation of time for bringing actions Except as otherwise specifically provided by law, actions for the following purposes may not be brought after the expiration of the period specified below from the time the right to maintain the action accrues: (1) for the recovery of lands, tenements, or hereditaments-15 years; (2) for the recovery of personal property or damages for its unlawful detention-3 years; (3) for the recovery of damages for an injury to real or personal property-3 years; (4) for libel, slander, assault, battery, mayhem, wounding, malicious prosecution, false arrest or false imprisonment-1 year; (5) for a statutory penalty or forfeiture-1 year; (6) on an executor's or administrator's bond-5 years; on any other bond or single bill, covenant, or other instrument under seal-12 years; (7) on a simple contract, express or implied-3 years; (8) for which a limitation is not otherwise specially prescribed3 years. This section does not apply to actions for breach or contracts for sale governed by § 28:2-725. § 12-302. Disability of plaintiff (a) Except as provided by subsection (b) of this section, when a person entitled to maintain an action is, at the time the right of action accrues: (1) under 21 years of age; or (2) noncompos mentis; or (3) imprisoned he or his proper representative may bring action within the time limited after the disability is removed. |