H.B. 227

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PROPERTY SURVEY - STATUTE OF
2 LIMITATIONS
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gerry A. Adair
6 AN ACT RELATING TO THE JUDICIAL CODE; PROVIDING A DEFINITION OF
7 COMPLETION OF IMPROVEMENT FOR AN ACTION BASED ON A SURVEY;
8 PROVIDING A DATE OF DISCOVERY RULE FOR ACTIONS AGAINST A PROVIDER;
9 AND MAKING TECHNICAL CORRECTIONS.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 78-12-25.5, as repealed and reenacted by Chapter 290, Laws of Utah 1991
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 78-12-25.5 is amended to read:
15 78-12-25.5. Actions related to improvements in real property.
16 (1) As used in this section:
17 (a) "Action" means any claim for judicial, arbitral, or administrative relief for acts, errors,
18 omissions, or breach of duty that causes injury to persons or property, whether based in tort,
19 contract, warranty, strict liability, indemnity, contribution, or other source of law[;].
20 (b) "Completion of improvement," except as provided in Subsection (3)(c)(ii), means the
21 date of substantial completion of an improvement to real property as established by the earliest of:
22 (i) a Certificate of Substantial Completion[,];
23 (ii) a Certificate of Occupancy issued by a governing agency[,]; or
24 (iii) the date of first use or possession of the improvement[, whichever is earliest;].
25 (c) "Improvement" means any building, structure, infrastructure, road, utility, or other
26 similar man-made change, addition, modification, or alteration to real property[;].
27 (d) "Person" means an individual, corporation, partnership, joint venture, association,

1 proprietorship, or any other legal or governmental entity[; and].
2 (e) "Provider" means any person contributing to, providing, or performing studies, plans,
3 specifications, drawings, designs, value engineering, cost or quantity estimates, [topographic]
4 surveys, staking, construction, and the review, observation, administration, management,
5 supervision, inspections, and tests of construction for or in relation to an improvement.
6 (2) The Legislature finds that:
7 (a) exposing a provider to suits and liability for acts, errors, omissions, or breach of duty
8 after the possibility of injury or damage has become highly remote and unexpectedly creates costs
9 and hardships to the provider and the citizens of the state;
10 (b) these costs and hardships include liability insurance costs, records storage costs, undue
11 and unlimited liability risks during the life of both a provider and an improvement, and difficulties
12 in defending against claims many years after completion of an improvement;
13 (c) these costs and hardships constitute clear social and economic evils;
14 (d) the possibility of injury and damage becomes highly remote and unexpected as to
15 claims for breach of contract or warranty six years following completion of the improvement or
16 the abandonment of construction and, as to all other claims, ten years following completion or
17 abandonment;
18 (e) it is in the best interests of the citizens of the state to impose the periods of repose
19 provided in this chapter; and
20 (f) it is in the best interests of the citizens of this state to impose a period of limitation
21 requiring that an action against a provider be brought within a two-year period following discovery
22 of the act, error, omission, or breach of duty that forms the basis of the action.
23 (3) (a) An action against a provider shall be commenced within two years from the date
24 of discovery of the act, error, omission, or breach of duty or the date upon which the act, error,
25 omission, or breach of duty should have been discovered through reasonable diligence.
26 (b) If the act, error, omission, or breach of duty is discovered or discoverable before
27 completion of the improvement or abandonment of construction, the two-year period begins to run
28 upon completion or abandonment.
29 (c) If the action is based upon a survey:
30 (i) the date on which the map of the survey was filed in the county surveyor's office under
31 Section 17-23-17 is the date of discovery; and

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1 (ii) "completion of the improvement" means the date the map of the survey is filed under
2 Section 17-23-17 with respect to the real property.
3 (4) Subject to Subsection (3), no action for breach of contract or warranty may be
4 commenced against a provider more than six years after completion of the improvement or
5 abandonment of construction. In the event the act, error, omission, or breach of duty is discovered
6 in the sixth year of the six-year period, the injured person has two additional years from the date
7 of discovery to commence an action.
8 (5) Subject to Subsections (3) and (4), no action may be commenced against a provider
9 more than 12 years after completion of the improvement or abandonment of construction. In the
10 event the act, error, omission, or breach of duty is discovered in the twelfth year of the 12-year
11 period, the injured person shall have two additional years from the date of discovery to commence
12 an action.
13 (6) Subsections (4) and (5) do not apply to an action against a provider:
14 (a) who has fraudulently concealed the act, error, omission, or breach of duty;
15 (b) for a willful or intentional act, error, omission, or breach of duty; or
16 (c) for breach of a written express warranty where the warranty period extends beyond six
17 years as provided in Subsection (4).
18 (7) If a person otherwise entitled to bring an action did not commence the action within
19 the periods prescribed by Subsections (4) and (5) solely because that person was a minor or
20 mentally incompetent and without a legal guardian, that person shall have two years from the date
21 the disability is removed to commence the action.
22 (8) The time limitation imposed by this section shall not apply to any action against any
23 person in actual possession or control of the improvement as owner, tenant, or otherwise, at the
24 time any defective or unsafe condition of the improvement proximately causes the injury for which
25 the action is brought.
26 (9) This section does not extend the period of limitation or repose otherwise prescribed
27 by law or a valid and enforceable contract.
28 (10) This section applies to all claims and causes of action that accrue after April 29, 1991,
29 notwithstanding that the act, error, omission, or breach of duty occurred, or the improvement was
30 completed or abandoned before April 29, 1991.


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Legislative Review Note
as of 11-27-96 2:01 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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