A statute of repose is a statute that bars a suit a fixed number of years after the defendant acts in some way (such as by designing or manufacturing a product), even if this period ends before the plaintiff suffers any injury.

In comparison, a statute of limitations is a statute establishing a time limit for suing or for prosecuting a crime, based on the date when the claim accrues (usually when injury occurs); the purpose of such a statute is to require diligent prosecution of known claims, thereby providing finality and predictability in legal affairs and ensuring that claims will be resolved while evidence is reasonably available and fresh.

Today, manufacturers and suppliers of products face a substantial degree of liability. Too many product liability suits are filed many years after a product was manufactured and operated without incident. This leads to unfairness, difficulties in defense, and higher insurance costs for all Ohioans.

Likewise, architects and engineers also face a substantial degree of liability exposure for property damage, economic damages, bodily injury, and wrongful death resulting from their alleged negligence in the design of improvements to real property that have long since been completed and for which the architect or engineer should not be held responsible due to reasons outside their realm of control.

Statutes of repose do not totally absolve the manufacturer/seller of products or an architect/engineer of any liability, but merely prevent them from having to defend an action brought many years after they have manufactured a product or completed a project.

Statutes of repose are based on the general legal principle that a potential defendant in a lawsuit should not be required to defend him/herself against “stale” claims that could easily be based on faded memories, lost evidence, or witnesses who have since disappeared. States have enacted statutes of repose to address a very basic concern. With respect to an architect or engineer, once a building is constructed neither the contractor nor the designer has the ability to enter the structure or to monitor its upkeep. They do not have the right to order repairs be made or maintenance be performed in a manner that will ensure the structure retains its integrity.

The absence of a statute of repose for products or construction translates into perpetual liability. Statutes of repose are vital instruments that provide time limits, closure and peace of mind to potential parties of lawsuits. In the case of architects and engineers, without a statute of repose they are required to continue to purchase “claims made” insurance for their lifetime, even after they have retired.

SB 80 (Stivers, R-Columbus) proscribes a 10-year statute of repose on all products and construction projects. This statute of repose is in line with what many other states have enacted in the past. The General Assembly should enact this provision to protect manufacturers and construction professionals from perpetual liability.

17 states have imposed some sort of statute of repose on products.

47 states have imposed some sort of statute of repose on construction.

Map data compiled by the Ohio Alliance for Civil Justice

 

home | about | issues | news | publications | links | join

Copyright 2004, © All Rights Reserved, Ohio Chamber of Commerce