Lawrence ex rel. Situated v. Gen. Panel Corp.

Summary

The South Carolina Court of Appeals answered a certified question concerning whether the 2005 amendments to South Carolina Code section 15-3-640 superseded Ocean Winds Corp. of Johns Island v. Lane regarding the date when the construction-defect statute of repose begins to run. The court held that the amendments did not supersede Ocean Winds and that substantial completion may occur when a specified portion of an improvement is complete and usable for its intended purpose, rather than necessarily upon issuance of a certificate of occupancy. A dissent would have treated issuance of a certificate of occupancy as a bright-line trigger for substantial completion.

Holdings

1. The 2005 amendments did not supersede Ocean Winds Corp. of Johns Island v. Lane.
2. A certificate of occupancy constitutes prima facie proof of substantial completion and supplies the latest date on which the statute of repose begins to run, but it does not establish the substantial-completion date in every case or eliminate the statutory definition applicable to a specified portion of an improvement.
3. The statute of repose for Lawrence's claims began to run when installation of the structural insulated panels was complete and the panels could serve their intended structural purpose, rather than when the home received its certificate of occupancy.

Questions Presented

1. Whether the 2005 amendments to South Carolina Code section 15-3-640 superseded Ocean Winds Corp. of Johns Island v. Lane.
2. Whether a certificate of occupancy establishes the date of substantial completion in every action involving an improvement to real property.
3. Whether the statute of repose for defective improvements begins to run upon completion of a specified area or portion of an improvement when that portion can be used for its intended purpose, notwithstanding a later certificate of occupancy.

Disposition

other