GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	2 

SENATE BILL 108*
Judiciary II Committee Substitute Adopted 4/7/93

Short Title:  Products Liability Repose.	(Public)
─────────────────────────────────────── 
Sponsors:
─────────────────────────────────────── 
Referred to:  
─────────────────────────────────────── 

February 10, 1993

A BILL TO BE ENTITLED
AN ACT TO AMEND THE STATUTE OF REPOSE FOR PRODUCTS LIABILITY ACTIONS AND TO RECODIFY THE STATUTE OF REPOSE FOR ACTIONS AGAINST REGISTERED LAND SURVEYORS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 1-47 reads as rewritten:
"§ 1-47.  Ten years.
Within ten years an action –
(1)	Upon a judgment or decree of any court of the United States, or of any state or territory thereof, from the date of its rendition.  No such action may be brought more than once, or have the effect to continue the lien of the original judgment.
(1.1)	Upon a judgment rendered by a justice of the peace, from its date.
(2)	Upon a sealed instrument against the principal thereto.  Provided, however, that if action on a sealed instrument is filed, the defendant or defendants in such action may file a counterclaim arising out of the same transaction or transactions as are the subject of plaintiff's claim, although a shorter statute of limitations would otherwise apply to defendant's counterclaim.  Such counterclaim may be filed against such parties as provided in G.S. 1A-1, Rules of Civil Procedure.
(3)	For the foreclosure of a mortgage, or deed in trust for creditors with a power of sale, of real property, where the mortgagor or grantor has been in possession of the property, within ten years after the forfeiture of the mortgage, or after the power of sale became absolute, or within ten years  after the last payment on the same.
(4)	For the redemption of a mortgage, where the mortgagee has been in possession, or for a residuary interest under a deed in trust for creditors, where the trustee or those holding under him has been in possession, within ten years after the right of action accrued.
(5)	Repealed by Session Laws 1959, c. 879, s. 2. 
(6)	No action for the recovery of damages for personal injury, death, or damage to property based upon or arising out of any alleged defect or any failure in relation to a product shall be brought more than ten years after the date of initial purchase for use or consumption.
(7) a. No action against any registered land surveyor as defined in G.S. 89C-3(9) or any person acting under his supervision and control for physical damage or for economic or monetary loss due to negligence or a deficiency in the performance of surveying or platting shall be brought more than ten years from the last act or omission giving rise to the cause of action.
b. For purposes of this subdivision, 'surveying and platting' means boundary surveys, topographical surveys, surveys of property lines, and any other measurement or surveying of real property and the consequent graphic representation thereof.
c. 	The limitation prescribed by this subdivision shall apply to the exclusion of G.S. 1-15(c) and G.S. 1-52(16)."
Sec. 2.  G.S. 1-50 reads as rewritten:
"§ 1-50.  Six years.
Within six years an action –
(1)	Upon the official bond of a public officer.
(2)	Against an executor, administrator, collector, or guardian on his official bond, within six years after the auditing of his final account by the proper officer, and the filing of the audited account as required by law.
(3)	For injury to any incorporeal hereditament.
(4)	Against a corporation, or the holder of a certificate or duplicate certificate of stock in the corporation, on account of any dividend, either a cash or stock dividend, paid or allotted by the corporation to the holder of the certificate or duplicate certificate of stock in the corporation.
(5)	a.	No action to recover damages based upon or arising out of the defective or unsafe condition of an improvement to real property shall be brought more than six years from the later of the specific last act or omission of the defendant giving rise to the cause of action or substantial completion of the improvement.
b.	For purposes of this subdivision, an action based upon or arising out of the defective or unsafe condition of an improvement to real property includes:
1.	Actions to recover damages for breach of a contract to construct or repair an improvement to real property;
2.	Actions to recover damages for the negligent construction or repair of an improvement to real property;
3.	Actions to recover damages for personal injury, death or damage to property;
4.	Actions to recover damages for economic or monetary loss;
5.	Actions in contract or in tort or otherwise;
6.	Actions for contribution indemnification for damages sustained on account of an action described in this subdivision;
7.	Actions against a surety or guarantor of a defendant described in this subdivision;
8.	Actions brought against any current or prior owner of the real property or improvement, or against any other person having a current or prior interest therein;
9.	Actions against any person furnishing materials, or against any person who develops real property or who performs or furnishes the design, plans, specifications, surveying, supervision, testing or observation of construction, or construction of an improvement to real property, or a repair to an improvement to real property.
c.	For purposes of this subdivision, 'substantial completion' means that degree of completion of a project, improvement or specified area or portion thereof (in accordance with the contract, as modified by any change orders agreed to by the parties) upon attainment of which the owner can use the same for the purpose for which it was intended.  The date of substantial completion may be established by written agreement.
d.	The limitation prescribed by this subdivision shall not be asserted as a defense by any person in actual possession or control, as owner, tenant or otherwise, of the improvement at the time the defective or unsafe condition constitutes the proximate cause of the injury or death for which it is proposed to bring an action, in the event such person in actual possession or control either knew, or ought reasonably to have known, of the defective or unsafe condition.
e.	The limitation prescribed by this subdivision shall not be asserted as a defense by any person who shall have been guilty of fraud, or willful or wanton negligence in furnishing materials, in developing real property, in performing or furnishing the design, plans, specifications, surveying, supervision, testing or observation of construction, or construction of an improvement to real property, or a repair to an improvement to real property, or to a surety or guarantor of any of the foregoing persons, or to any person who shall wrongfully conceal any such fraud, or willful or wanton negligence.
f.	This subdivision prescribes an outside limitation of six years from the later of the specific last act or omission or substantial completion, within which the limitations prescribed by G.S. 1-52 and 1-53 continue to run.  For purposes of the three-year limitation prescribed by G.S. 1-52, a cause of action based upon or arising out of the defective or unsafe condition of an improvement to real property shall not accrue until the injury, loss, defect or damage becomes apparent or ought reasonably to have become apparent to the claimant.  However, as provided in this subdivision, no action may be brought more than six years from the later of the specific last act or omission or substantial completion.
g.	The limitation prescribed by this subdivision shall apply to the exclusion of G.S. 1-15(c), G.S. 1-52(16) and G.S. 1-47(2).
					)."
Sec. 3.  This act becomes effective October 1, 1993, and applies to causes of action arising on or after that date; provided, however, this act shall not apply to a cause of action involving a product initially purchased for use or consumption prior to October 1, 1987.