Understanding Tennessee’s Statute of Repose for Construction Defects

In Tennessee, all legal actions for damages caused by the negligence of another party have a time limit within which the action must be commenced. For claims involving negligent construction or design of an improvement to real estate, there is a crucial deadline called a statute of repose. Understanding this legal deadline is vital for contractors, subcontractors, developers, and homeowners. This article discusses Tennessee’s statute of repose for construction defects.

What Is a Statute of Repose and Why Does It Exist?

A statute of repose limits the time within which a lawsuit can be filed. However, unlike a statute of limitations, which starts counting down after an injury or defect is discovered or should have reasonably been discovered, a statute of repose begins counting down after the specific “triggering” event, such as the completion of a construction project. So, unlike a statute of limitations, which can vary based on when an injury or defect is discovered, a statute of repose establishes a firm deadline for filing a lawsuit, regardless of when the injury or defect was discovered.

So, why does Tennessee have a statute of repose? The statute of repose is meant to provide certainty and finality by preventing indefinite liability. It balances the interests of plaintiffs with those of defendants and ensures fairness. In the construction context, without the statute of repose, potential defendants such as contractors and architects could face lawsuits years or even decades after completing their work. Suppose a construction defect lawsuit is filed years or decades after the project has been completed. In such a case, it can be difficult for the defendant(s) to defend against the claim(s), due to lost records, faded memories, and other issues. By setting a clear deadline for when a construction-related lawsuit can be filed, the statute of repose helps avoid these challenges.

Tennessee’s Statute of Repose for Construction Defects

According to Tennessee Code Annotated Section 28-3-202, anyone who wants to recover damages for injuries to property or people arising out of a construction defect has four years after the substantial completion of the improvement to do so. Substantial completion means the date the improvement is declared sufficiently finished for its intended use or occupancy.

However, while the statute of repose is strict, there is a crucial exception. If an injury occurs during the fourth year after substantial completion, the affected party has one extra year to file a lawsuit. Therefore, the longest time a party has to file a construction defect lawsuit in Tennessee is five years from when the project is substantially completed.

What Does This Mean for Claimants and Defendants?

For homeowners, tenants, and other claimants, the statute of repose means that time is of the essence. You should not wait to bring a claim for construction defects. If you wait, you could lose your right to sue. If you believe you have a legal claim, speak to an attorney as soon as possible.

On the other hand, the statute of repose provides a vital safeguard for defendants, such as contractors and architects. It ensures you aren’t exposed to liability indefinitely after completing a project. After the 4 to 5-year period ends, you can have confidence that no new lawsuits for defects tied to that project can arise.

Contact Us for Legal Help

If you’re dealing with a construction defect or facing a construction defect claim, contact our skilled Knoxville construction law attorney at Reynolds, Atkins, Brezina & Stewart, PLLC for legal help.

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