EARL G. BROWN; EMMA L. BROWN;
RICHARD B. EVANS; PEGGY F.
EVANS; CATHERINE ANN EVANS;
RICHARD TIM EVANS; CLARENCE
FARRELL; KATHYRN FARRELL; ROBERT POWELL, SR.;
RUTH MAXINE POWELL; LATTICE CURL,
and wife EVELYN CURL; LEWIS BOGER
and wife KATHY BOGER,
Plaintiffs,
v
.
Alamance County
No. 03 CVS 663<
br>
AMERICAN MULTIMEDIA, INC.; AMI;
A.M.I.,INC.; AMERICAN MEDIA
INTERNATIONAL, LCC; AMERICAN MEDIA
INTERNATIONAL, LTD.; BURLINGTON
PROPERTY, LLC; BILL AND PEGGY
BRITT LIMITED PARTNERSHIP;
DAVID J. FORSYTH; BILLY B. BRITT;
PEGGY G. BRITT; and JERRY C. JONES, JR.,
Defendants.
________________________________________
AMERICAN MULTIMEDIA, INC.;
AMERICAN MEDIA INTERNATIONAL, LLC;
BURLINGTON PROPERTY, LLC; BILL AND
PEGGY BRITT LIMITED PARTNERSHIP;
DAVID J. FORSYTH; BILLY B. BRITT;
PEGGY G. BRITT; JERRY C. JONES, JR.;
Third-Party Plaintiffs,
v.
HERITAGE CASKET COMPANY, INC.;
MARSELLUS CASKET COMPANY, INC.;
SERVICE CORPORATION INTERNATIONAL,
Third-Party Defendants.
McCULLOUGH, Judge.
This lawsuit arose after plaintiffs discovered that their
underground water supply had been contaminated. From 1970 through
2003, various landowners controlled an adjoining seven-acre tract.
Between 1970 and 1980, the Heritage Casket Company owned the seven-
acre tract. Heritage manufactured caskets and was a wholly owned
subsidiary of Marsellus Casket Company, Inc.
In 1980, Heritage sold the seven-acre tract to Bill and Peggy
Britt. Subsequently, the Britts conveyed the land to the Bill and
Peggy Britt Partnership. In 1984, American Multimedia, Inc.
purchased the property from the Bill and Peggy Britt Partnership.
Finally, Burlington Property, LLC, bought the land from American
Multimedia in 1994.
Plaintiffs initiated a lawsuit against defendants, the
entities who owned the land since 1980. Specifically, plaintiffs
alleged that these entities allowed chemicals to contaminate the
groundwater supply. Plaintiffs filed nuisance, negligence, and
trespass claims. They also asserted that defendants violated the
Oil Pollution and Hazardous Substances Control Act (OPHSCA).
Defendants denied responsibility and claimed that the Heritage
Casket Company caused the contamination prior to selling the
property in 1980. Defendants filed third-party complaints against
Heritage, Marsellus, and Service Corporation International.
The casket company moved for summary judgment on all claims
and argued that the ten-year statute of repose barred the third-
party action. On 27 July 2004, the trial court entered an order
granting the motion for summary judgment. Defendants appeal.
On appeal, defendants argue that the trial court erred by
granting the motion for summary judgment. We disagree and affirm
the trial court's order.
The standard of review on appeal from a summary judgment
ruling is whether the pleadings, depositions, answers to
interrogatories, and admissions on file, together with affidavits,
show that there is no genuine issue as to any material fact, and a
party is entitled to judgment as a matter of law. Moore v.
Coachmen Industries, Inc., 129 N.C. App. 389, 393-94, 499 S.E.2d
772, 775 (1998). The moving party may meet its burden by showing
that the nonmoving party's action is barred by an affirmative
defense[.] Id. at 394, 499 S.E.2d at 775.
Defendants contend that their third-party claims are not time-
barred. Pursuant to N.C. Gen. Stat. § 1-52(16) (2003),
for personal injury or physical damage to
claimant's property, the cause of action,
. . . shall not accrue until bodily harm to
the claimant or physical damage to his
property becomes apparent or ought reasonably
to have become apparent to the claimant,
whichever event first occurs. Provided thatno cause of action shall accrue more than 10
years from the last act or omission of the
defendant giving rise to the cause of action.
(Emphasis added.)
The plain language of the statute indicates that in cases
involving property damage, a cause of action may not be brought
more than ten years after defendant's last act or omission.
Our Supreme Court considered the application of this statute
to third-party claims in Wilson v. McLeod Oil Co., 327 N.C. 491,
398 S.E.2d 586 (1990), reh'g denied, 328 N.C. 336, 402 S.E.2d 844
(1991). In Wilson, plaintiffs sued their adjoining landowners for
contamination of their well water. Id. at 498, 398 S.E.2d at 588.
Defendants filed third-party complaints against the previous owners
of the offending properties. Id. The Court of Appeals affirmed
the trial court's decision to grant summary judgment to all third-
party defendants because the third-party complaints were filed more
than ten years after third-party defendants sold the properties to
third-party plaintiffs. Id. at 512-13, 398 S.E.2d at 597.
On discretionary review, the North Carolina Supreme Court
upheld the decision to grant summary judgment for third-party
defendants based on N.C. Gen. Stat. § 1-52(16). Wilson, 327 N.C.
at 512-13, 398 S.E.2d 597. The Court explained:
These claims are barred by the statute of
repose found in § 1-52(16), which bars an
action filed more than 10 years after the
last act or omission of the defendant giving
rise to the cause of action. N.C.G.S. §
1-52(16) (1983).
Id. at 513, 398 S.E.2d at 597. The present case is remarkably similar to Wilson. As was the
case in Wilson, plaintiffs sued the adjoining landowners after
learning that their water supply was contaminated. Like the
defendants in Wilson, defendants in this case filed third-party
complaints against the previous owners of the offending properties.
Finally, as was the case in Wilson, the third-party complaints in
the present case were untimely. Since third-party defendants sold
the property in 1980, it has been twenty-three years since the last
possible act or omission.
(See footnote 1)
Significantly, defendants do not mention or seek to
distinguish Wilson in their brief. It is well established that we
are bound by rulings of the North Carolina Supreme Court. Mahoney
v. Ronnie's Road Service, 122 N.C. App. 150, 153, 468 S.E.2d 279,
281 (1996), aff'd, 345 N.C. 631, 481 S.E.2d 85 (1997).
Furthermore, a court should adhere to conclusions deliberately
reached in prior cases to maintain stability and certainty in the
law. Potter v. Water Co., 253 N.C. 112, 117, 116 S.E.2d 374, 378
(1960). We believe that the result in Wilson controls the outcome
of this case.
In an attempt to circumvent our Supreme Court's holding in
Wilson, defendants have characterized their third-party claims ascontribution and fraudulent failure to reveal material information.
However, the mere characterization of the third-party complaint
does not govern the applicability of the statute of repose. See
generally Tetterton v. Long Manufacturing Co., 314 N.C. 44, 52, 332
S.E.2d 67, 71-72 (1985). In this case, the underlying action
between plaintiffs and defendants is for damage to real property.
The plain language of the statute indicates that in cases involving
property damage, no cause of action shall accrue more than 10
years from the last act or omission of the defendant giving rise to
the cause of action. N.C. Gen. Stat. § 1-52(16) (emphasis added).
This language encompasses the third-party complaints at issue in
the present case.
Finally, we note that the statute of repose set forth in § 1-
52(16) establishes a fixed limit as to when entities, such as
landowners, can expect to no longer be exposed to lawsuits for
damage to property. We decline to allow an end-run around the
statute of repose that would ignore a clear mandate to the contrary
and undermine the chief virtue of the statute, its certainty.
Based on the plain language of N.C. Gen. Stat. § 1-52(16) and
our Supreme Court's decision in Wilson, we conclude that the trial
court acted appropriately in disposing of the third-party claims in
this case. Because the nonmoving party's action is barred by an
affirmative defense, the statute of repose, the trial court's order
granting summary judgment is
Affirmed.
Judges HUNTER and LEVINSON concur.
Report per Rule 30(e).
*** Converted from WordPerfect ***