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Statute of Limitations/Repose Ruling 2-Year Malpractice Statute Not Applicable to Claims Involving Improvements to Real Property The Michigan Supreme Court has issued a ruling that is likely to have a significant impact on the liability of architects, engineers and surveyors facing professional liability claims. In Ostroth v Warren Regency, GP, LLC et al, 474 Mich 36 (2006), a unanimous Supreme Court ruled that the two (2) year malpractice statute of limitations did not apply to claims for professional liability against professional architects, engineers, and surveyors, where the claim involves improvements to real property. Only the six (6) year statute of repose and limitations applies in those instances. The 6 years begins to run when the building is occupied or at substantial completion. There is a one (1) year discovery period for claims alleging gross negligence, but that discovery period is capped at Ten (10) years. The two (2) year malpractice statute of limitations will still apply to professional liability claims against architects, engineers, and surveyors which do not involve improvements to real property. The two (2) year statute has a six (6) month discovery rule. If you have any questions about this decision or other professional
liability issues, please do not hesitate to call or email Randall
E. Phillips at |
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