SSTATUTEtatute ofOF RReEPOSEpose: : PROVIDINGProvidingPEACE Pea OFce M ofIND M indFOR By Cleve Clinton and Bill Drabble Gray Reed & McGrawT LLP,EXAS Houston BUILDERSfor T, exasCONTRACTORS Builders, , ANDCon RtEPAIRMENractors, By Cleve Clinton and Bill Drabble Gray Reed, Houston and Repairmen AAfterfter last call, Rebecca closes up the later than 10 years after the basement bar she manages and heads to her office substantial completion of the for a cigarette and moment of solitude and improvement in an action arising reflection. Promising (again) that the cigarette out of a defective or unsafe would be her last, Rebecca finishes it, flicks the condition of the real property or a butt into a nearby wastebasket,wastebasket, and leaves. A butt deficiency in the construction or ignites the wastebasket, and the fire quickly repair of the improvement.1 spreads through the manager’s office. The fire- suppression system activates but fails to halt the For those individuals and corporations with no blaze, which rapidly engulfs the rest of the bar and control over substantially-completed real estate the high-end seafood restaurant upstairs. The fire improvements and no authority to access and eventually consumes—and destroys—the entire inspect any unsafe conditions or to ensure the building. Not much later, the company that improvements are being properly used or have not installed the fire-suppression system twelve years been defectively altered,2 the statute of repose ago, Commercial Safety and Security, Inc., is provides a complete defense to a lawsuit alleging served with a citation and petition. The bar is personal injury or property damagedamage..3 suing, alleging that Commercial negligently designed the system by using the wrong sprinkler This article addresses (i) the significant discharge criteria and spacing. With twelve years distinctions between statutes of repose (such as having passed, Commercial no longer has any §§16.009)16.009) and statutes of limitations; (ii) §16.009’s records of the installation; most of its employees scope and application,application, including those who the have left; the few remaining employees have little statute shields, (iii) calculation of the ten-year memory of the installation. How does repose period, and (iv) the statute’s exceptions. Commercial defend itself? DifferenceDifference Between Statutes of Repose and Fortunately, one of Texas’s statutes of Statutes of Limitations repose eliminates the threat of never-ending-ending liability for those who construct improvements on Although they both impose a deadline by real property. The statute, codified at Texas Civil when claims must be filed, statutes of limitations Practice and Remedies Code §16.009,§16.009, provides: and repose are different. Time limits established by statutes of limitations are generally based upon A claimant must bring suit for the date when the claim accrues.4 For example, damages . . . against a person who limitations begin to run upon a legal injury being constructs or repairs an suffered, even if the injury was not discovered improvement to real property not until later and damages had not yet occurred.5

1 TEX. CIV. PRAC. & REM. CODE ANN. § 16.009(a). improvement from facing never-ending potential liability 2 S. Tex. Coll. of Law v. KBR, Inc., 433 S.W.3d 86, 91 (Tex. based on that work.”). App.—Houston [1st Dist.] 2014, no pet.); see also Reames 3 See Reaves, 949 S.W.2d at 761. v. Hawthorne -Seving, Inc., 949 S.W.2d 758, 761 (Tex. 4 Statute of Limitations, Black’s Law Dictionary (10th ed. App.—Dallas 1997, pet. denied) (“The purpose of the 2014). statute is to protect someone who constructs and installs an 5 See S.V. v. R.V., 933 S.WS.W.2d.2d 1, 4 (Tex. 1996).

18 Texas Association of Defense Counsel | Fall/Winter 2019 StatutesStatutes Softatutes limitations of oflimitations limitations may alsomay maybealso extendalsobe beextended extendby ededby by(3) the(3) plaintiff’s(3) thethe plaintiff’s plaintiff’s claim claim“aris[es] claim “aris[es] “aris[es]out of outa defective out of aof defective a defective equitableequitableequitable doctrines doctrines doctrines,, such ,as suchthe such asdiscovery theas thediscovery discovery rule and rule ruleand and or unsafeor orunsafe conditionunsafe condition condition on real on onpropertyreal real property propertyor the or orthe the fraudulentfraudulentfraudulent concealment concealment concealment, and, tolling and, and tolling limitations tolling limitations limitations, , deficiency, deficiencydeficiency in the in construction inthe the construction construction or repair or or repairof repair the of ofthe the such assuch thesuch asplaintiff’s theas theplaintiff’s plaintiff’s disability disability disability or military or militaryor servicemilitary service serviceimprovement improvementimprovement”; and ”(4); and”;the and (4) plaintiff (4) thethe plaintiff didplaintiff not did file did not his not file file his his or the ordefendant’s theor thedefendant’s defendant’s absence absence fromabsence the from fromstate the. the6 stateFor state the.6 For.6 For the theor heror claim orher h erclaimwithin claim within tenwithin years ten ten yearsafter years substantialafter after substantial substantial defectivedefectivedefective fire suppression fire fire suppression suppression claim, claim, Texas’s claim, Texas’s statuteTexas’s statute statutecompletion completioncompletion of the ofimprovement. ofthe the improvement. improvement.13 13 13 of limitationsof oflimitations limitations is two isyears twois two7 yearsand years any7 and7 lawsuitand any any lawsuit filedlawsuitfiled filed withinwithin twowithin yearstwo two yearsof yearsthe of fire ofthe the wouldfire firewould likelywould likelybe likely be be Who DoesWhoWho theDoes Does Statute the the Statute of Statute Repose of Reposeof Protect? Repose Protect? Protect? timelytimely. timely. . SectionSection Section16.009 16.009 16.009protects protects protectsthose thosewhothose who who “[W]hile “[W]hile“[W]hile statutes statutes statutesof limitations of oflimitations limitations operate operate operateconstruct constructconstructor repairor or repairimprovements repair improvements improvements to realto toreal real procedurallyprocedurallyprocedurally to bar tothe tobar enforcement bar the the enforcement enforcement of a right, of ofa right,aa right, a propertya property..property14 In other14 .In14 words,Inother other words, “the words, statute “the “the statute applies statute applies to applies to to statutestatute ofstatute repose of ofrepose takes repose awaytakes takes theaway away right the the altogether,right right altogether, altogether,those whothosethose start whowho with start start personalty with with personalty personalty and transform and and transform transform the the the creatingcreating creatinga substantive a substantivea substantive right toright beright freeto tobe of befree liability free of ofliability liabilitypersonalty personaltypersonalty into an into improvement.”into an animprovement.” improvement.”15 While15 While15thoseWhile thosethose after aafter specifiedaftera specifieda specified time.” time.”8 Stime.”tatutes8 S8tatutes Softatutes repose of ofrepose arereposeare arein the inconstruction thein the construction construction industry industry industryare clearly are are clearly covered clearly covered16 covered, 16, 16, absoluteabsoluteabsolutein nature.in nature.in9 Theynature.9 commenceThey9 Theycommence commence on a readily on ona readily a readilysection section 16.009section 16.009protects 16.009 protectsanyprotects person anyany person who person builds who who builds or builds or or ascertainableascertainableascertainable date, whichdate date, which,is whichtypically is istypically typicallywhen whenthe when the the repairs repairs a repairsstructure a structure a structurefor any for reason. for any any reason. Special reason. Specialtraining Special trainingtraining defendantdefendantdefendant acted ratheracted acted ratherthan rather when than than thewhen whenplaintiff the theplaintiff wasplaintiff was wasor qualificator orqualificat qualifications, participations,ion participats, participation in iona specificion in ina specifica tradespecific trade trade injured.injured. injured.Statutes Statutes Statutesof repose of ofrepose canrepose eliminatecan can eliminate eliminate a a ora professionor orprofession profession, or even, or, beingoreven even beingcompensat being compensatcompensated for edthe edfor for the the plaintiff’splaintiff’splaintiff’s cause causeof actioncause of action ofbefore action before it beforeever it accrued. ever it ever accrued. 10accrued.10 10work iswork notwork isrequired. notis not required. required. A dutiful A dutifulA amateur dutiful amateur amateurrepairing repairing repairing And, uAnd,nlikeAnd, unlikestatute unlikestatutes ofstatute limitations ofs oflimitation limitation, there, thereare, there no are are no nohis grandmother’shishis grandmother’s grandmother’s fence fence receivesfence receives receivesthe samethe the same same judiciallyjudiciallyjudicially-created-created rules-created ofrules tollingrules of oftolling or tolling deferral or ordeferral fordeferral a for for a protectiona protectionprotection as the asprofessional asthe the professional professional who built who who it built. built it. it. statutestatute ofstatute repose of ofrepose.11 repose.The.11 “wholeThe11 The “whole point” “whole point” of point” a statute of aof statute a statute of reposeof reposeof is reposeto “fix is to isan “fixto outer “fix an limitanouter outer beyond limit limit beyond which beyond which no which no no SectionSection 16.009’sSection 16.009’s 16.009’sprotection protection protection also extends also also extends extends actionaction canaction be can maintained.” can be bemaintained.” maintained.”12 12 12 beyondbeyond thebeyond persons the the persons whopersons “ hammeredwho who “hammered “hammered the nails the theand nails nails and and turnedturned theturned screwsthe the screws” screwsto ”who ”to toarewhowho contractuallyare are contractually contractually Texas’sTexas’s StatuteTexas’s Statute ofStatute Repose of ofRepose forRepose Constructors for for Constructors Constructors and and andresponsible responsibleresponsible for the for construction for the the construction construction or repair or orrepairwork repair. 17work work.17 .17 RepairmenRepairmenRepairmen It appliesIt appliesIt toappliesboth to thetobothbothgeneral thethe general contractorgeneral contractor contractorand the and and thethe subcontractorsubcontractorsubcontractor who whoactuallywho actuallyactuallyinstalled installed installedthe thethe The statuteTheThe statute of statute repose of ofreposecodified reposecodified codifiedat section at atsection sectionimprovement improvement.improvement.18 The18 statute .The18 The statute also statuteshields also also shieldsthoseshields thatthosethose thatthat 16.00916.009 of16.009 the ofCivil ofthe the PracticeCivil Civil Practice Practiceand Remedies and and Remedies Remedies Code Code Codeprovide provide providemanagement management management and supportand and support supportservices services servicesfor for for appliesapplies appliesif: (1)if: theif: (1) defendant(1)the the defendant defendant constructed constructed constructed or or orconstruction constructionconstruction projects. projects. 19projects.For 19instance For19 For instance ,instance the Eleventh, the, the EleventhEleventh repaired;repaired;repaired; (2) that (2) which (2)that that which the which defendant the the defendant defendant construct construct constructed ed edCourt Courtof CourtAppeals of ofAppeals Appealsheld section heldheld section 16.009 section 16.009 applie 16.009 appliess to applie a tos ato a or repairedor orrepaired repairedwas an was improvement was an animprovement improvement to real to property; realto real property; property;machinery machinerymachinerymanufacturer manufacturermanufacturer hired hiredby hired the by property bythe the property property

6 Id.; T6EXId..6 ;CId. TIV;EX. TP.EXRACCIV. C.. &IVPRAC.R PEMRAC. &. C. RODE&EM R.EMACNNODE. C. ODE§§ANN16.001(b), A.NN §§. 16.001(b),§§ 16.001(b),14 Petro14 ShoppingPetro14 Petro Shopping Ctrs.,Shopping Inc.Ctrs., Ctrs.,v. OwnesInc. Inc. v. OwnesCorningv. Ownes Corning Fiberglas Corning Fiberglas Fiberglas 16.063.16.063.16.063. Corp., 906Corp.Corp. S.W.2d, 906, 906 S.W.2d 618, S.W.2d 620 618, (Tex. 618, 620 App.620 (Tex. (Tex.— App.El PasoApp.—El —1995, PasoEl Paso no 1995, 1995, no no 7 TEX. C7 IVTEX7. PT.RACEXCIV. .C.&IVPRACR. PEMRAC..&C.RODE &EM R.AEMCNNODE. C. ODE§A16.003(a).NN A.NN § 16.003(a).. § 16.003(a). writ). writ).writ). 8 Methodist8 Methodist8 HealthcareMethodist Healthcare Healthcare Sys. of SanSys. Sys. Antonio, of San of San Antonio, Ltd. Antonio, v. RankingLtd. Ltd. v. Ranking v., Ranking, 15, Sonnier15 Sonnier 15v.Sonnier Chis v.holm Chisv. -RyderChisholm-holm Co.Ryder-Ryder, 909 Co. S.W.2dCo., 909, 909 S.W.2d 475, S.W.2d 479 475, 475, 479 479 307 S.W.3d307307 S.W.3d 283, S.W.3d 287 283, (Tex. 283, 287 2010)287 (Tex. (Tex. (quoting 2010) 2010) (quoting Galbraith (quoting Galbraith Eng’gGalbraith Eng’g Eng’g(Tex. 1995);(Tex.(Tex. 1995);see 1995); also see Reames seealso also Reamesv. Reames Hawthorne v. Hawthornev. Hawthorne-Seving-Seving, 949-Seving, 949, 949 Consultants,Consultants,Consultants, Inc. v. PochuchaInc. Inc. v. Pochuchav. ,Pochucha 290 S.W.3d, 290, 290 S.W.3d 863, S.W.3d 866 863, (Tex. 863, 866 866 (Tex. (Tex.S.W.2d S.W.2d 758,S.W.2d761 758, (Tex.758, 761 761 App.(Tex.(Tex.— App.Dallas App.— Dallas1997,—Dallas pet.1997, 1997,denied) pet. pet. denied) denied) 2009));2009));see2009)); alsosee Trinity seealso also TrinityRiver Trinity Auth.River River v.Auth. URS Auth. v. Consultants, URSv. URS Consultants, Consultants,(stating ( statingthat(stating section that that section16.009 section 16.009applies 16.009 appliesto applies“those to who“thoseto “those actually who who actually actually Inc.–Tex.Inc., Inc.889–Tex.– Tex.S.W.2d, 889, 889 S.W.2d 259, S.W.2d 261 259, (Tex.259, 261 261 1994)(Tex. (Tex. (stating1994) 1994) (stating that (stating that that alter thealter alterrealty the the byrealty realtyconstructing by byconstructing constructing additions additions additionsor annexin or orannexing annexing g statutesstatutes ofstatutes repose of reposeofare repose “a aresubstantive are“a “asubstantive substantive definition definition definitionof, rather of, oratherf, ratherpersonalty personalty personaltyto it”). to itto”). it ”). than a pthanroceduralthan a p rocedurala p limitationrocedural limitation on,limitation rights on,”). on,rights rights”). ”). 16 But see16 But 16GalbraithBut see seeGalbraith GalbraithEng’g Consultant,Eng’g Eng’g Consultant, Consultant, Inc. v. Inc.Pochucha Inc. v. Pochuchav. ,Pochucha , , 9 Methodist9 Methodist9 MethodistHealthcare Healthcare Healthcare Sys., 307 Sys. S.W.3d Sys., 307, 307 S.W.3d at S.W.3d287. at 287. at 287. 290 S.W.3d290290 S.W.3d 863, S.W.3d 867 863, (Tex.863, 867 8672009) (Tex. (Tex. (incorrectly2009) 2009) (incorrectly (incorrectly stating statingthat stating that that 10 See id.10;See Galbraith10 See id. ;id. Galbraith; Eng’gGalbraith, Eng’g290 Eng’g S.W.3d, 290, 290 S.W.3d at S.W.3d866. at 866. at 866. section section16.008section 16.008“only 16.008 precludes“only “only precludes precludessuits againstsuits suits againstperson against personor person or or 11 Methodist11 Methodist11 MethodistHealthcare Healthcare Healthcare Sys., 307 Sys. S.W.3d Sys., 307, 307 S.W.3d at S.W.3d287. at 287. at 287. entitiesentities in theentities construction in the in theconstruction construction industry industry that industry annex that thatpersonalty annex annex personalty personaltyto to to 12 Id. (quoting12 Id.12 Id.(quoting Holubec (quoting Holubec v. HolubecBrandenberger v. Brandenbergerv. Brandenberger, 111 S.W.3d, 111, 111 S.W.3d 32, S.W.3d 32, 32,re alty”).realty”).realty”). 37 (Tex.37 2002)). (Tex.37 (Tex. 2002)). 2002)). 17 See S.17 Tex.See17 See S.Coll. Tex. S. of Tex. Coll. Law Coll. ofv. LawKBR,of Law v. Inc. KBR, v. , KBR,433 Inc. S.W.3d Inc., 433, 433 S.W.3d 86, S.W.3d 91 86, 86,91 91 13 TEX.13CIVT13EX. PT.RACEXCIV. .C.&IVPRACR. PEMRAC. &CODE.R &EM RAEMCNNODE C. ODE§A16.009(a);NN A.NN § 16.009(a);. § 16.009(a);JenkinsJenkins Jenkins(Tex. App.(Tex.(Tex.— App.Houston App.—Houston— [1stHouston Dist.] [1st [1st 2014,Dist.] Dist.] no2014, pet.);2014, no Jenkinsnopet.); pet.); Jenkins, Jenkins, , v. Occidentalv. v.Occidental Occidental Chem. Chem.Corp. Chem., Corp.415 Corp. ,S.W.3d 415, 415 S.W.3d 14, S.W.3d 24 14,(Tex. 14, 24 24(Tex. (Tex.415 S.W.3d415415 S.W.3d at S.W.3d25; Reames at 25; at 25;Reames, 949Reames S.W.2d, 949, 949 S.W.2d at S.W.2d763. at 763. at 763. App.—App.HoustonApp.—Houston— [1stHouston Dist.] [1st [1st 2013),Dist.] Dist.] 2013),rev’d 2013), onrev’d other rev’d on grounds onother other grounds, grounds, 18, Reames18 Reames,18 949Reames S.W.2d, 949, 949 S.W.2d at S.W.2d763; atBarnes 763; at 763; Barnesv. J.W.Barnes v.Bateson J.W. v. J.W. Bateson Co. Bateson, Co. Co., , 478 S.W.3d478478 S.W.3d 640S.W.3d (Tex. 640 640 2016);(Tex. (Tex. 2016);Williams 2016);Williams Williamsv. U.S. v. Nat.v.U.S. U.S. Nat. Nat.755 S.W.2d755755 S.W.2d 518, S.W.2d 519 518,– 20518, 519 (Tex. 519–20 App.– (Tex.20 (Tex.— App.Fort App. —WorthFort—Fort 1988,Worth Worth no 1988, 1988, no no Resources,Resources,Resources, Inc., 865 Inc. S.W.2dInc., 865, 865 S.W.2d 203, S.W.2d 206 203, (Tex.203, 206 206App. (Tex. (Tex.— App.Waco App.—Waco—Wacowrit). writ).writ). 1993, no1993, writ).1993, no writ).no writ). 19 See S.19 Tex. See19 See S.Coll. Tex. S. ofTex. Coll. Law Coll. ,of 433 Law of S.W.3dLaw, 433, 433 S.W.3d at S.W.3d92. at 92. at 92.

Texas Association of Defense Counsel | Fall/Winter 2019 19 ownerowner ownerto “superviseto to“supervise “supervise and and assist”and assist” assist”in thein inthe thehave haveconstruchave construc constructed orted repairedted or repairedor repaired an “improvement” an an“improvement” “improvement” to to to machinery’smachinery’smachinery’s installation installation installation, even, eventhough, even though thoughit did it not didit did not notthe realthe the property.real real property. property.In Sonnier In SonnierIn Sonnier, the ,Texas the, t heTexas Supreme Texas Supreme Supreme provideprovideprovideany any laboranylabor. 20 labor.The.20 20 The propertyThe property property owner owner owner Cour Court definedCourt definedt defined“improvement” “improvement” “improvement” broadly, broadly, broadly, stating stating stating contractedcontractedcontracted with withthe with manufacturerthe the manufacturer manufacturer to bearto to bearthe bear the thethat thatit that“includes it “includesit “includes all additionsall alladditions additionsto the to to freeholdthe the freehold freehold “ultimate“ultimate“ultimate responsibility” responsibility” responsibility” for thefor for themachinery’ the machinery’ machinery’s s sexcept except forexcept trade for for trade fixtures trade fixtures fixtureswhich which canwhich becan canremoved be beremoved removed installation.insinstallation.tallation.21 Due21 toDue21the Due to manufacturer’s theto the manufacturer’s manufacturer’s dual role,dual dual role, role,without withoutwithout injury injury injuryto tothe to theproperty.”the property.”property.”29 “An29 29“An“An the thecourtthe court courtheld held thatheld that itthat “constructed”it it“constructed” “constructed” the the theimprovement improvementimprovement can becan anythingcan be beanything anything that ‘permanentlythat that ‘permanently ‘permanently improvementimprovementimprovement within within withinthe the meaning the meaning meaning of sectionof ofsection sectionenhances enhancesenhances the value the the value of value the of premises’ theof the premises’ premises’ and may and and evenmay may even even 16.009.16.009.2216.009.22 22 be somethingbe besomething something that isthat easilythat is easilyis removable easily removable removable so long so solongas long as as it is attachedit isit attachedis attached to and to intendedandto and intended intended to remain to remainto remaina part a ofpart a part of of Nevertheless NeverthelessNevertheless, a manufacturer, a manufacturer, a manufactureractingactingsolely actingsolely solelythe [realthethe [realproperty].” [real property].” property].”30 That30 That30expansiveThat expansiveexpansivedefinition definitiondefinition as a asmanufacturer asa manufacturera manufacturer falls fallsoutside falls outside outsidesectionsection section16.009 16.009 ’s 16.009 ’s ’sencompa encompaencompasses ssesfixtures,sses fixtures, fixtures, which which whichare are personalare personal personal scopescope. scope.In .Sonnier In InSonnier Sonnier v. Chisholm v. v.Chisholm Chisholm--Ryder-Ryder Co.Ryder , Co.the Co., the, the property propertyproperty that havethat that havebecome have become become so attached so soattached attached to realty to torealty realty TexasTexas SupremeTexas Supreme Supreme Court Courtheld Courtheld that held the that thatstatute the the statute didstatutenotdid didnot notthat theythatthat theybecome they become become part ofpart itpart ofwhile ofit whileit simultaneously while simultaneously simultaneously applyapply toapply materialmento tomaterialmen materialmen or manufacturesor ormanufactures manufactures of theof ofthe theretaining retainingretaining their theirtheirseparate separateseparate identity. identity.identity.31 31All 31 AllAll personaltypersonaltypersonalty that athat third that a third partya third party subsequently party subsequently subsequently affixes affixes affixesimprovements improvementsimprovements are not are necessarily are not not necessarily necessarily fixtures, fixtures, fixtures, but all but but all all to theto property. theto the property. property.23 In that23 In23 case, thatIn that case,a portion case, a portion a portion of a prison of aofprison a prison fixtures fixturesfixtures—except—except— except trade tradetrade fixturesfixtures fixtures—are—are—are employeeemployeeemployee’s arm’s armwas’s arm wassevered wassevered severedwhile whileinspecting whileinspecting inspecting a a aimprovements. improvements.improvements.32 32 32 tomatotomato tomatochopper chopper chopper manufactured manufactured manufactured for usefor for usein use thein inthe the prison’sprison’sprison’scommercialcommercial commercial cannery. cannery. cannery.24 When24 24When Whenthe the the To qualifyTo Toqualify qualifyas an as improvement, asan animprovement, improvement, the itemthe the item item employeeemployeeemployee sued, sued, thesued, themanufacturer the manufacturer manufacturer raised raised raisedthe the themust must bemust annexed be beannexed annexed to the to realtothe the realproperty real property property.33 When.33 .33 When When statutestatute ofstatute repose of reposeof asrepose a defense.as aas defense. a defense.25 A closely25 A25 closelyA closelydivided divided divided determining determiningdetermining whether whether whether the the itemthe item hasitem has beenhas beenbeen supremesupremesupreme court c ourtheld court heldthat held thatsection that section section16.009 16.009 16.009did notdid did not notsufficiently sufficientlysufficiently annexed, annexed, annexed, the courtsthe the courts considercourts consider consider three three three apply.apply. Theapply. fiveThe The-justicefive five-justice-majorityjusticemajority majorityreasonedreasoned reasonedan iteman anitem item factors: factors: factors:(1) the(1) (1) modethethe mode andmode andsufficiency and sufficiency sufficiency of theof ofthe the does doesnotdoes nottransform not transform transformfromfrom personalty frompersonalty personalty to anto toan anannexation, annexation,annexation, either either actua either actuall oractua constructive; orl orconstructive; constructive; (2) the (2) (2) thethe improvementimprovementimprovement until untilit isuntil affixedit isit affixedis affixedto the to property. theto the property. property.26 26 26adaption adaptionadaption of the ofitem ofthe the itemto itemthe to use theto the oruse purposeuse or orpurpose purpose of the of ofthe the BecauseBecauseBecause section section section16.009 16.009 applies16.009 applies appliesonly onlyto thoseonly to thoseto who those who whorealty; realty; realty;and and(3) and the(3) (3) intentthethe intent ofintent theof ofpersonthe the person personwho who who constructconstructconstruct and andrepair and repair repairan “improvementan an“improvement “improvement,” its,” ,”its itsannexed annexedannexed the item. the the item.34 item.34 34 applicabilityapplicabilityapplicabilityis limitedis islimited limitedto thto ose toth osethatthose thatannex that annex annex personaltypersonaltypersonalty to real to tytoreal. 27realtyFour.27ty.27 Fourjustices Four justices justicesdissented, dissented, dissented, The ThefirstThe firstfactor first factor,, factorwhich which, addresseswhich addresses addresseshow howhow arguingarguing arguingthat thethat thatstatute the the statute shouldstatute should applyshould apply if apply“it ifwas “ ifit “thewasit wasthe thesecurely securelysecurely the itemthe the itemis itemattached is attachedis attached to the to propertytothe the property property, is , is, is objectiveobjectiveobjective intent intent of intent the of parties theof the parties at parties the at time the at the timethe time object the the object objectultimately ultimatelyultimately a question a questiona question of degree. of of degree. degree.While While theWhile itemthe the item item was wasconstructedwas constructed constructed that that it that wouldit itwould wouldbecome become become an an anneed neednotneed benot permanentlynot be bepermanently permanently attached attached attached and renderedand and rendered rendered improvementimprovementimprovement.”28 .”28.”28 immobile,immobile,immobile, merely m erely mplacingerely placing placingan item an an itemon item propertyon onproperty property obviouslyobviouslyobviously does doesnot does makenot not make itmake an it improvement. anit animprovement. improvement.35 35 35 WhatWhat AreWhat Improvements?Are Are Improvements? Improvements? Additionally,Additionally,Additionally, where where the where itemthe the itemis itemattached is isattached attached will will will affectaffect theaffect analysis.the the analysis. analysis. An itemAn An itemdirectly item directly directlyattached attached attached to to to In additIn Inaddition addition toionbeing to tobeing directly being directly directly involved involved involved,, a , a at he soil,thet hesoil,as soil,opposed as asopposed opposed to a structure,to ato structure, a structure, is more is more islikely more likely likely personperson seekingperson seeking seekingrepose repose underrepose under section under section section16.009 16.009 must16.009 must mustto beto considered beto beconsidered considered an improvement. an animprovement. improvement.36 36 36

20 Fuentes20 Fuentes20 v. Fuentes Cont’l v. Cont’l Conveyerv. Cont’l Conveyer Conveyer & Equip. & Equip. &Co. Equip., 63 Co. S.W.3d Co., 63, S.W.3d63 518, S.W.3d 518, 518,S.W.2d S.W.2d 651,S.W.2d 653 651, 651,(Tex. 653 653 (Tex.App. (Tex.— App.Houston App.—Houston— [1stHouston Dist.] [1st [1st Dist.] 1987, Dist.] 1987,no 1987, no no 521 (Tex.521521 (Tex.App. (Tex.— App.Eastland App.—Eastland— Eastland2001, 2001,pet. 2001, denied). pet. pet. denied). denied). writ)),writ)),disapprovedwrit)), disapproveddisapproved on other on on othergrounds other grounds groundsby Sonnier by bySonnier , Sonnier909, 909, 909 21 Id. at21 Id.52121 atId.–22. 521 at 521–22.–22. S.W.2dS.W.2d atS.W.2d 483. at 483. at 483. 22 Id. at22 Id.522.22 atId. 522. at 522. 31 Reames31 Reames31, Reames949 S.W.2d, 949, 949 S.W.2d at S.W.2d761 at. 761 at 761. . 23 Sonnier23 Sonnier23 v. Sonnier Chisholm v. Chisholm v. Chisholm-Ryder-Ryder Co.-Ryder, 909 Co. S.W.2dCo., 909, 909S.W.2d 475 S.W.2d, 479 475 –475,80479 , 479–80– 8032 Id. 32 Id.32 Id. (Tex. (Tex.1995).(Tex. 1995). 1995). 33 Sonnier,33 Sonnier,33 909Sonnier, S.W.3d 909909 S.W.3d at S.W.3d 479; atReames 479; at 479; Reames, 949Reames S.W.2d, 949, 949 S.W.2d at S.W.2d 761. at 761. at 761. 24 Id. at24 Id.477.24 atId. 477. at 477. 34 Sonnier34 Sonnier34, 909Sonnier ,S.W.3d 909, 909 S.W.3d at S.W.3d 479 at (citing 479 at 479 (citing Logan (citing Logan v. LoganMullis v. Mullis ,v. 686 Mullis , 686, 686 25 Id. 25 Id.25 Id. S.W.2dS.W.2d 605,S.W.2d 607 605, 605,(Tex. 607 607 (Tex.1985)). (Tex. 1985)). 1985)). 26 Id. 26at Id.47926 Id.at (“Only 479at 479 (“Only upon (“Only uponannexation upon annexation annexation does thedoes doespersonalty the thepersonalty personalty35 Reames35 Reames35, Reames949 , S.W.2d949, 949 S.W.2d atS.W.2d 762 at (holding 762at 762 (holding (holdingthat athat movable that a movablea movable lose itslose characteristicslose its itscharacteristics characteristics as personal as personalas personalproperty property propertyand becomeand and become becomeco nveyerconveyerco beltnveyer was belt an belt was improvement); was an improvement);an improvement);In re SanIn reIn A Sanngelore San A ngeloPro Angelo Pro Pro viewedviewed asviewed an improvement”).as anas improvement”).an improvement”). HockeyHockey Club,Hockey Club,Inc. Club,, 292Inc. Inc.,B.R. 292, 292 118,B.R. B.R. 130118, 118,(Bankr. 130 130 (Bankr. N.D.(Bankr. N.D.Tex.N.D. Tex. Tex. 27 Id. 27 Id.27 Id. 2003).2003).2003). 28 See28 id.See28at See48id.8 atid.(Owen, 48 at8 48(Owen,8 J., (Owen, dissenting). J., dissenting).J., dissenting). 36 In 36re In36San reIn Angelo Sanre San Angelo Pro Angelo HockeyPro Pro Hockey ClubHockey , Club292 Club , B.R.292, 292 atB.R. 132B.R. at 132 at 132 29 Id. at29 Id.479.29 atId. 479. at 479. (“[W]hen(“[W]hen(“[W]hen an item an isiteman annexed item is annexed is annexedto the to soil, theto as thesoil, opposed soil, as opposedas opposedto a to ato a 30 Dedmon30 Dedmon30 v.Dedmon Stewart v. Stewart v.-Warner Stewart-Warner Corp.-Warner ,Corp. 950 Corp. F.2d, 950, 950 244,F.2d F.2d 246 244, –244,47 246 246–47– 47wall, floor,wall,wall, floor, or floor,ceiling, or ceiling, or the ceiling, appropriate the theappropriate appropriate legal analysislegal legal analysis isanalysis not is not is not (5th Cir.(5th(5th 1992)Cir. Cir. 1992) (quoting 1992) (quoting (quotingDublin Dublin v.Dublin Carrier v. Carrierv. Corp.Carrier Corp., 731Corp., 731, 731 Hard at Work! 20 Texas Association of Defense Counsel | Fall/Winter 2019 was located under the plant’s drying system.50 The second factor—adaptation— wasThe located conveyer under belt the wasplant’s placed drying on system. wheels50 to addressesThe whethersecond the itemfactor and— theadaptation realty have— a Thefacilitate conveyer cleaning belt was the placeddryer.51 onWorkers wheels wouldto addressescommon whether purpose the. itemAn anditem t hethat realty furthers have athe facilitateperiodically cleaningmove the the dryer. conveyer51 Workers belt four would to five commonproperty purpose’s use and. An enhances item that its valuefurthers will thelikely periodicallyfeet and then move return the conveyerit to its original belt four positio to fiven after propertybe considered’s use and an enhances improvement. its value37 will likely feetthey and thenfinished return clit eaning.to its original52 Even positio thoughn after the be considered an improvement.37 theyconveyer finished belt clwaseaning. readily52 Evenmoved, though the court the held The third factor examines whether the conveyerthat it beltwas wasan improvement.readily moved, The the conveyercourt held belt personThe who third annexed factor theexamines item intendedwhether to make the it thatwas it wasconstructively an improvement. annexed The toconveyer the property belt , persona permanent who annexed addition the to item the intended property. to Intent make is it the wasbecause constructively the property annexed owner to “never the propertyintended, to a permanent“preeminent” addition factor, to the and property. “the otherIntent twois the are becausemove theit more property than fewowner feet “never as necessary intended for to [the “preeminent”evidence offactor, intent.” and38 “theCourts other determine two are the moveplant’s] it more operations than few and feet neveras necessary moved forit for[the any evidparties’ence ofintent intent.” by looking38 Courts to its determineexternal objective the plant’s]other operationspurpose.”53 andAdditionally, never moved the itcourt for any stated parties’manifestations. intent by looking39 A tobald its externalassertion objective that the otherthat purpose the conveyer.”53 Additionally, belt was wellthe courtadapted stated to the manifestations.personalty 39wasA notbald meantassertion to becomethat the an thatproperty the conveyer “because belt a wascritical well phase adapted of tothe the [tile - personaltyimprovement was cannotnot prevailmeant overto facts.become40 an propertymaking] “because process, a transportingcritical phase dried of thepower [tile from- improvement cannot prevail over facts.40 making]the dryer process, to transportingthe storage driedsilo, powercould fromnot be Applying that three-factor test, Texas theperformed dryer to unlessthe storage [the conveyersilo, could belt] not was be in courtsApplying have held that that three a -widefactor variety test, Texasof items performedplace.”54 unlessFinding [the those conveyer facts belt]evidence was dinthe courtsqualif haveied asheld improvements, that a wide including variety ofa furnaceitems ,41 place.”property54 Finding owner’s those intent, facts the courtevidence heldd that the the qualifa garageied as- doorimprovements, opener,42 an including air-conditioninga furnace unit,41 ,43 propertyconveyer owner’sbelt was intent, an improvement the court held as athat matter the of a garageindustrial-door kilns opener,44 ,42undergroundan air-conditioning gasoline unit storage,43 conveyerlaw.55 belt was an improvement as a matter of industrialtanks,45 kilns,asbestos44 underground-containing gasoline fireproofing storage law.55 tanksmaterials,45 ,asbestos46 and a -heatcontaining exchanger fireproofingat a refinery. 47 Though broad, the definition of materialsIn fact,,46 theand Texas a heat Supremeexchanger Court at a refinery.suggested47 in improvementThough hasbroad, its limits,the definition and it expressly of In Sonnierfact, the that Texas a motel Supreme could Court bolt asuggested painting toin the improvementexcludes trade has fixturesits limits,. Trade and fixtureit expresslys have a Sonnierwall ofthat one a of motel its room coulds withbolt athe painting intent thatto the it not excludes“well- establishedtrade fixtures and. Trade commonly fixture s understoodhave a wallbe of removed one of its and room therebys with transform the intent a paintingthat it not into “wellmeaning-established in Texasand commonlylaw.”56 They understood are items be removedan improvement. and thereby48 transform a painting into meaning“annexed in toTexas the realty law.” by 56the Theytenant toare enable items him an improvement. 48 “annexedto properly to the realtyor effic byiently the tenant carry to onenable the himtrade, As another example, in Reames v. to profession,properly or orefficiently enterprise carry contemplated on the trade, by the Hawthorne-As anotherSeving,example, Inc., thein FifthReames Court v. of profession,tenancy contractor enterprise or in which contemplated he is engaged by thewhile HawthorneAppeals -Seving,held that Inc.a movable, the Fifthconveyer Court belt of in a tenancyoccupying contract the or inpremises, which he and is engaged which whilecan be Appealsceramic held tile that plant a movable was an conveyerimprovement belt inunder a occupyingremoved thewithout premises, material and or permanentwhich can injury be to ceramicsection tile 16.009. plant 49was The an conveyerimprovement belt under, which removed without material or permanent injury to sectioncarried 16.009. powder49 thatThe wasconveyer later pressed belt, intowhich tiles , carried powder that was later pressed into tiles,

to look at such items as a fixture or a trade fixture but as an 44 Cofer v. Ferro Corp., No. 12-02-00151-CV, 2003 WL to lookimprovement.”). at such items as a fixture or a trade fixture but as an 44 Cofer21804821, v. Ferro at * 4Corp.(Tex., No.App. 12—-02-00151-Tyler Aug.CV, 6, 2003, 2003no WL pet.). improvement.”).37 See Dow Chem. Co. v. Abutahoun, 395 S.W.3d 335, 345– 21804821,45 Big W. at *Oil4 (Tex. Co. v.App. Willborn—Tyler Bros. Aug. Co. 6, 2003,, 836 S.W.2dno pet.). 800 , 37 See46 Dow(Tex. Chem. App. —Co.Dallas v. Abutahoun 2013), aff’d, 395, 463S.W.3d S.W.3d 335, 42345 (Tex.– 45 Big803 W.(Tex. Oil App.Co. v.— WillbornAmarillo 1992Bros., Co.no writ)., 836 S.W.2d 800, 46 (Tex.2015). App. —Dallas 2013), aff’d, 463 S.W.3d 42 (Tex. 80346 (Tex.Brown App. & —Root,Amarillo Inc. v. 1992Shelton, no ,writ). 446 S.W.3d 386, 390–91 2015).38 Sonnier, 909 S.W.at 479. 46 Brown(Tex. App.& Root,—Tyler Inc. v.2003 Shelton, no pet.)., 446 S.W.3d 386, 390–91 38 Sonnier39 See ,State 909 S.W.atv. Clear 479. Channel Outdoor, Inc., 463 S.W.3d (Tex.47 App.Karish— Tylerv. Allied 2003,-Signal, no pet.). Inc. , 837 S.W.2d 679, 681 (Tex. 39 See488, State 494 (Tex.v. Clear 2015). Channel Outdoor, Inc., 463 S.W.3d 47 KarishApp.— v.Corpus Allied -ChristiSignal, 1992Inc.,, 837no writ). S.W.2d 679, 681 (Tex. 488,40 494 Id.; (Tex.see also 2015). Logan, 686 S.W.2d at 608 (stating that “even App.48—SonnierCorpus, 909Christi S.W.2d 1992 at, no479 writ).–80. 40 Id.testimony; see also ofLogan intention, 686 S.W.2dthat the at chattel608 (stating was thatnot “evenmeant to 48 Sonnier49 Reames, 909, 949 S.W.2d S.W.2d at 479 at 762.–80. testimonybecome of a fixture intention will that not the prevail chattel in thewas fact not of meant undisputed to 49 Reames50 Id. , 949 S.W.2d at 762. becomeevidence a fixture to the will contrary”). not prevail in the fact of undisputed 50 Id.51 Id. evidence41 Dedmon to the , contrary”).950 F.2d at 250. 51 Id.52 Id. 41 Dedmon42 Ablin , 950v. Morton F.2d at Sw.250 .Co., 802 S.W.2d 788, 791 (Tex. 52 Id.53 Id. at 762. 42 AblinApp. —v. SanMorton Antonio Sw. 1990,Co., writ802 denied).S.W.2d 788, 791 (Tex. 53 Id.54 atId. 762. App.43— RodarteSan Antonio v. Carrier 1990, writCorp. denied)., 786 S.W.2d 94, 95 (Tex. 54 Id.55 Id. 43 RodarteApp.—El v. PasoCarrier 1990, Corp. writ, dism’786 S.W.2dd by agr.), 94, overruled95 (Tex. by 55 Id.56 C.W. 100 Louis Henna, Ltd. v. El Chico Rests. of Tex., App.Petro—El ShoppingPaso 1990, Ctrs., writ Inc.dism’ v.d Ownesby agr.), Corningoverruled Fiberglas by 56 C.W.L.P. , 100295 Louis S.W.3d Henna, 748, Ltd.755 v.(Tex. El ChicoApp.— Rests.Austin of 2009,Tex., no PetroCorp. Shopping, 906 S.W.2d Ctrs., 618 Inc. (Tex. v. Ownes App.— CorningEl Paso 1995, Fiberglas no writ). L.P.pet.)., 295 S.W.3d 748, 755 (Tex. App.—Austin 2009, no Corp., 906 S.W.2d 618 (Tex. App.—El Paso 1995, no writ). pet.).

Texas Association of Defense Counsel | Fall/Winter 2019 21 thethe thefreehold.”freehold.”the freehold.” freehold.”5757 Courts57 57Courts Courtshave have heldhave held thatheld thattrade that trade trade thoughthoughthough thoughtherethere there maymaythere maybe bemay incompletedincompletedbe beincompleted incompleted aspectsaspects aspects aspectsofof of of ffixturesixturesfixturesf ixturesremainremain remain remainpersonalpersonal personal personal propertyproperty property property “because“because “because “because thethe the the construction.”construction.”construction.”6363 And,63 63 And, tAnd,that t hatinterpretationthat interpretation interpretation is is is intentintentintent ofofintent [their][their]of of[their] [their]annexationannexation annexation annexation isis totois furtherfurtheristo tofurther furtherthethe the the consistentconsistentconsistent with withsimilar with similar similar statutes statutes statutesof repose of ofreposeinin repose otherother in otherin other purposepurposepurpose of the of tenant’softhe the tenant’s tenant’s trade, trade, not trade, to not improve not to improveto improve the the the statesstatesstates..6464states.64 .64 realty.”realty.”realty.”58realty.”58 Given58 Given58 thatGiven thatpurpose, that purpose, purpose, trade trade fixtures trade fixtures fixtures are are are typicallytypicallytypicallytypically intendedintended intended intended toto bebe to temporarytemporary beto betemporary temporary additionsadditions additions additionsand and and DeterminingDeterminingDetermining when when sectionwhen section section16.009’s 16.009’s 16.009’s ten-- ten ten- - retainedretainedretainedretained byby tenten by ant byten whentenantant when the when leasethe the lease ends lease .ends.5959 endsT.hus,59 .T59 hus, Thus, year yearperiodyear period beginsperiod begins isbegins a party is ais party-specific --aspecificspecific party-specific inquiry.inquiry. inquiry. inquiry. For For For ttraderadet radefixturesfixturestrade fixtures fixtures areare aa are narrownarrow are a narrow a narrowexceptionexception exception exception toto thethe to broadbroad theto the broad broad example,example,example, in Gordon in inGordonGordon v. Western v. v.Western Western Steel Steel Co.Steel ,, Co.thethe Co., the, the definitiondefinitiondefinition of improvements. of improvements.of improvements. plaintiffplaintiffplaintiff sued suedits sued general its itsgeneral general contracto contracto contractorr for forr allegedallegedforr foralleged alleged defectsdefects defectsin the in constructioninthe the construction construction of condominiums. of ofcondominiums. condominiums.6565 65 65 WhatWhat ClaimsWhat Claims ClaimsAre BarredAre Are Barred Barredby the by bythe the The ThegeneralThe general generalcontractor, contractor, contractor, in turn,in in turn, filedturn, filed claimsfiled claims claims StatuteStatute Statuteof Repose? of Repose?of Repose? againstagainst againsttwo two oftwo itsof ofsubcoits itssubco ntractorssubcontractorsntractorswho whohadwho had had delivereddelivereddelivered and a erectednda nderected erectedthe thestructural the structural structural steel .steel.6666 steel.66 .66 Moreover, Moreover,Moreover, the types the the types of types claims of ofclaims coveredclaims covered covered by by by BecauseBecauseBecause they theyhad they completed had had completed completed their theirwork their work more work more than more than than §16.009§16.009§ 16.009are expansive.are are expansive. expansive. The Thestatute The statute statuteapplies applies appliesto to to tenten tenyearsyearsten years yearsbeforbefor beforee beforthey e they werethey were weresued, sued, sued,the thethe claimsclaims for:claims “(1)for: for: injury,“(1)injury, “(1)injury, damage,injury,damage, damage, damage, oror lossloss or toorlossto reallossreal to ororrealto real or or subcontractorssubcontractorssubcontractorssubcontractors assertedasserted asserted asserted thethe statutestatutethe the statute statuteofof reposerepose of ofrepose reposeasas as as personalpersonalpersonal property; property;property; (2) personal(2)(2)personal personal injury; injury;injury; defense.defense.defense.6767 InIn67 response,response,67In Inresponse, response, thethe generalthe general the general general contractorcontractor contractor contractor (3)(3) wrongful(3)(3)wrongful wrongful death; death; death;(4) contribution;(4)(4)contribution; contribution; or or or arguedargued arguedthat thatthe that claimsthe the claims claimswere were timely were timely becausetimely because because the the the (5)(5) indemnification”indemnification”(5)(5)indemnification” indemnification” ifif theytheyif if they arisearisethey arise outoutarise outofof out “a“aof of“a “a condominiums,condominiums,condominiums, as a aswhole, asa whole, a whole,were were finished were finished finishedwithin withinwithin defectivedefectivedefective or unsafe or orunsafe conditionunsafe condition condition of the of real theof the propertyreal real property property nine nineyearsnine years of years the offilingfiling theof the filing ofoffiling thethe oflawsuitlawsuit theof the lawsuit..lawsuit6868 .68 .68 or a deficiencyor aor deficiency a deficiency in the in cons thein thetruction construction constructiontruction oror repairrepair or repairor ofof repair thethe of theof the improvement.”improvement.”improvement.”improvement.”6060 Notably,60 Notably,60 Notably, section section section16.009 16.009 16.009applies applies applies The TThirteenthheT heThirteenth Thirteenth Court Court ofCourt Appe of ofAppea lslsAppeagreedalsa agreedls agreed whenwhenwhenthethe thealleged allegedthe alleged allegedinjuryinjury injury injuryresultsresults results resultsfromfrom from aafromny a nyany with withthewith subcontractorsthe the subcontractors subcontractors and hasand and heldhashas heldthat, held that,when that, when when dangerousdangerousdangerous condition condition condition on the on property, onthe the property, property, even even if evenit isif itif isit is differentdifferentdifferent persons persons persons are responsible are are responsible responsible for distinct for for distinct distinctparts parts parts not notthenot the improvementthe improvement improvement that that thethat the defendantthe defendant defendant of theof construcofthe the construction constructiontion oror tionrepairrepair or orrepair work,work,repair work, thethework, statutorystatutorythe the statutory statutory constructedconstructedconstructed or repaired. or repaired.or repaired.6161 61 61 periodperiodbeginsperiod begins uponbegins upon the upon substantial the the substantial substantial completion completion completion of of of each eachperson’seach person’s person’s port ionionport portofofion theionthe of work.ofwork.the the work.6969 work.The69 The69courtThe court court HowHow Is Howthe Is Repose theIs the Repose ReposePeriod Period Calculated?Period Calculated? Calculated? concludedconcludedconcludedthatthat that “[s]tarting “[s]tartingthat “[s]tarting “[s]tarting thethe statutestatutethe the statute statuteofof reposerepose of ofrepose repose whenwhen eachwhen each [person]each [person] [person] finishes finishes finishes its improvementits itsimprovement improvement Section SectionSection 16.009’s 16.009’s 16.009’s ten--year ten ten- yearperiod-year period totoperiod assertassertto assertto assertconforms conformsconforms with withthe with legislative the the legislative legislative intent intent of intent preventing of preventingof preventing thosethosethose claimsclaimsthose claims beginsclaimsbegins tobegins run to upontorun run upon “the upon “thesubstantial “the substantial substantial indefiniteindefiniteindefiniteindefinite liability liability liability liability forfor thosethosefor for those whowhothose whoconstructconstruct who construct construct oror or or completioncompletioncompletion of the of improvement.”ofthe the improvement.” improvement.”6262 “Substantial62 “Substantial62 “Substantial repairrepairrepair improvementsimprovementsrepair improvements improvements toto realreal to propertypropertyrealto real property property.”.”7070 And.”70.” ,,And70thetheAnd, the, the completion”completion”completion” is left is undefined left is left undefined undefinedby theby statute bythe the statute.. statuteWhile. While. While courtcourt statedcourt stated that stated thethat thatpracticalities the the practicalities practicalities did not did didmilitate not not militate militate TexasTexas courtsTexas courts havecourts havenot have interpretedinterpretednot notinterpreted interpretedtermtermterminin term thethein inthe the inin favorfavorin infavor ofoffavor ananof ofalternativealternativean analternative alternative construction.construction. construction. construction. TheThe The The contextcontextcontextof sectionsectionof ofsection section16.009,16.009, 16.009, 16.009, theythey theyhave theyhave elsewh have elsewh ereelsewh ereere substantialsubstantialsubstantialsubstantial completioncompletion completioncompletion ofof ofthethe of the various variousthe various various defineddefineddefined “substantial “substantial “substantial completion” completion” completion”toto meanto tomean “somean “so “so improvementsimprovementsimprovementsimprovements withinwithin within aawithin largerlarger a largera project projectlarger project projectisis unlikelyunlikely is unlikelyis unlikely completedcompletedcompleted that thatthe that [improvement]the the [improvement] [improvement] is capable is capableis capable of of of toto “stretch“stretchto to“stretch “stretch beyondbeyond beyond beyondseveralseveral several severalyears,years, years, andandyears, andgeneralgeneral and general general beingbeing utilizedbeing utilized utilized for its for intended for its its intended intended purposes purposes purposes . .. .. ,, .eveneven. .. ,. even . , even contractorscontractorscontractorsand andbeneficiariesand beneficiaries beneficiaries ordinarily ordinarily ordinarily have have have

5757 Id.Id. 57(quoting(quotingId.57 Id.(quoting (quotingBoyett Boyett v. BoyettBoegner v. Boegner v. ,,Boegner 746746 ,S.W.2dS.W.2d 746, 746 S.W.2d 25, 25,S.W.2d 2727 25, (Tex.(Tex. 25,27 (Tex.27 (Tex. 6464 See,64 e.g.,See,64 See, Hille.g., e.g.,Cnty. Hill Hill Cnty.High Cnty. HighSch. High Dist.Sch. Sch. ADist. v. Dist. Dick A v. A AndersonDickv. Dick Anderson Anderson App.—App.HoustonApp.—Houston— Houston[1st Dist.] [1st [1st Dist.]1988, Dist.] 1988,no 1988,writ); no writ);noseesee writ); alsoalsosee ReamesReames seealso also Reames,, Reames, , Constr.,Constr., Inc.Constr.,,, 390Inc. Inc.,P.3d 390, 390 602,P.3d P.3d 605602, 602,(Mont. 605 605 (Mont. 2017) (Mont. 2017);; Lamprey 2017); Lamprey; Lampreyv. v. v. 949 S.W.2d94994 S.W.2d9 atS.W.2d 761 at (defining 761at 761 (defining (defining a “trade a “trade fixture”a “trade fixture” asfixture” “an as item, “anas “an item, item, BrittonBritton Constr.,Britton Constr., Inc.Constr.,,, 37 Inc. A.3d Inc., 37, 359, A.3d37 A.3d 366 359, 359,(N.H. 366 366 (N.H. 2012); (N.H. 2012);Weston 2012); Weston Weston whichwhich canwhich be can removed can be removedbe removedwithout without material without material ormaterial permanent or permanent or permanent injury injury injury v.v. McWilliamsMcWilliamsv. McWilliamsv. McWilliams & & Assocs.,Assocs., & Assocs., & Inc.Inc.Assocs.,,, 716 716Inc. Inc. N.W.2dN.W.2d, 716, 716 N.W.2d 634, 634,N.W.2d 636636 634, 634,(Minn.(Minn. 636 636 (Minn. (Minn. toto the the to freefree theto hold,hold, thefree free thathold, that hold, aa that tenant tenant that a tenant annexesannexesa tenant annexes totoannexes the the to realtyrealty theto the realty toto enablerealty enable to enableto enable 2006);2006);Ocean2006); Ocean WindsOcean Winds Corp. Winds Corp. of Corp.Johns of Johns ofIsland Johns Island v. IslandLane v. , , Lane v.556 Lane, 556, 556 thethe tenanttenantthe thetenant to to tenantcarrycarry to oncarry onto itscarry its on business”).business”). itson business”).its business”). S.E.2dS.E.2d 337S.E.2d,, 419419337, 337(S.C.(S.C. 419, 419 (S.C.2001)2001)(S.C. 2001);; Gordon 2001); Gordon; v.Gordon W. v.Steel W.v. W.CoSteel ..Steel,, 950Co .Co, 950., 950 5858 Eun58 BokEun58 EunLee Bok v.Bok Lee Ho Lee v.Chang Ho v. HoChang Lee Chang,, 411 Lee LeeS.W.3d, 411, 411 S.W.3d 95, S.W.3d 110 95, (Tex. 95,110 110 (Tex. (Tex. S.W.2dS.W. 743,S.W.2d 7472d743, 743, (Tex.747 747 (Tex.App. (Tex. —App.Corpus App.—Corpus— ChristiCorpus Christi 1997, Christi 1997,writ 1997, writwrit App.—App.HoustonApp.—Houston— Houston[1st Dist.] [1st [1st Dist.]2013, Dist.] 2013,no 2013,pet.). no pet.).no pet.). denied)denied) (quotingdenied) (quoting (quotingPatraka Patraka v.Patraka Armco v. Armco v. Steel Armco Co.Steel Steel,, 495 495Co. Co., F. F. 495 Supp.Supp., 495 F. Supp. F. Supp. 5959 C.W.59 100C.W.59 C.W. Louis 100 100 LouisHenna, Louis Henna, Ltd. Henna,,, 295295Ltd. Ltd. S.W.3d,S.W.3d 295, 295 S.W.3d atat S.W.3d 755755 at (quoting(quoting 755 at 755 (quoting (quoting 1013, 1013,1071013,–20 107 (M.D. 107–20– (M.D.20 Pa. (M.D. 1980)). Pa. Pa.1980)). 1980)). JimJim WalterWalterJimJim Walter Window WindowWalter Window WindowComponentsComponents Components Componentsv.v. TurnpikeTurnpikev. Turnpikev. Turnpike Distr.Distr. Distr. Ctr.Ctr. Distr.,, Ctr. Ctr., ,65 65 Gordon65 Gordon65,, Gordon950950 S.W.2d,S.W.2d 950, 950 S.W.2d atat S.W.2d 744.744. at 744. at 744. 642 S.W.2d642642 S.W.2d 3,S.W.2d 5 Tex.3, 53, Civ.Tex. 5 Tex. App.Civ. Civ.— App.Dallas App.—Dallas —1982,Dallas 1982,writ 1982, ref’dwrit writ ref’d ref’d 6666 Id.Id. 66 Id.66 Id. n.r.e.)).n.r.e.)). n.r.e.)). 6767 Id.Id. 67atat Id.745.745.67 Id.at 745.at 745. 6060 TEX60..CT60IVEXIV T...PEXCRACIV. C..P.IV&RAC. PRRACEM. &...RC &EMODE R.EMCAODE.NN CODE.. A§§NN16.009(a) A.NN § 16.009(a). § 16.009(a)–(b).(b). –(b).–(b). 6868 Id.Id. 68 Id.68 Id. 6161 Id.Id. 61§ 16.009(a).Id.61 Id.§ 16.009(a). § 16.009(a). 6969 Id.Id. 69atat Id.748.69 Id.at 748. at 748. 6262 Id.Id. 62 Id.62 Id. 7070 Id.Id. 70 Id.70 Id. 6363 See63 UhlirSee63 See Uhlirv. UhlirGolden v. Goldenv. TriangleGolden Triangle TriangleDev. Corp.Dev. Dev. Corp.,, 763 Corp. , S.W.2763, 763 S.W.2d S.W.2d d 512, 514512, 512,(Tex. 514 514 (Tex.App. (Tex.— App.Fort App.— WorthFort—Fort Worth 1988, Worth 1988,writ 1988, denied).writ writ denied). denied).

22 Texas Association of Defense Counsel | Fall/Winter 2019 opportunitiesopportunitiesopportunities to supervise to tosupervise supervise or disapprove or ordisapprove disapprove of the of ofthe the any anypersonany person personwho whoconstruct who construct constructed ored edrepairedor orrepaired repaired any any any workwork alongwork along thealong way.”the the way.”71 way.” And71 ,71And the And, courtthe, the court furthercourt further further improvementimprovementimprovement on the on property. onthe the property. property. And ,And the And ,statute’s the, the statute’s statute’s remarkedremarkedremarked that that“it that is“it not “itis overlyisnot not overly overlyburdensome burdensome burdensome to to to protectionsprotectionsprotections are substantial. are are substantial. substantial. It provides It providesIt provides a complete a complete a complete decipherdecipherdecipher when when whenrespective respectiverespective contractors contractorscontractors defensedefensedefense to any to toclaimany any claim filedclaim filedbeyond filed beyond beyondthe statute’sthe the statute’s statute’s substantiallysubstantiallysubstantially complete complete complete their theirimprovements their improvements improvements (e.g. ,( e.g. (e.g., , inflexibleinflexibleinflexible and absolute and and absolute absolute ten-year ten ten- yeardeadline.-year deadline. deadline. whenwhen theywhen theysubmit they submit submittheir theirfinal their finalbills final billsand/or bills and/or and/orwalk walk walk awayaway fromaway from the from project). the the project). project).”72 Thus,”72” Thus,72 when Thus, when applying when applying applying AboutAbout theAbout Authors the the Authors Authors sectionsection section16.009, 16.009, 16.009,the court the the court must court must determine must determine determine when when the when the the defendantdefendantdefendant substantially substantially substantially completed completed completed its work, its itswork, notwork, not not CleveCleve CleveClinton, Clinton, Clinton, Partner Partner Partner – G –ray –G rayReedGray Reed Reed& & & whenwhen whenthe the entirethe entire entireproject project projectwas was substantiallywas substantially substantially McGrawMcGrawMcGraw LLP, LLP, Houston LLP, Houston Houston complete.comcomplete. plete. [email protected] [email protected] [email protected] WithWith aWith client a clienta listclient fulllist list fullof full familiesof offamilies families navigating navigating navigating WhatWhat AreWhat theAre Are Exceptions the the Exceptions Exceptions to the to theto the businessbusinessbusiness and generational and and generational generational transitions, transitions, transitions, Fortune Fortune Fortune 500 500 500 StatuteStatute Statuteof Repose? of ofRepose? Repose? companiescompaniescompanies and risk-and and takingrisk- risk-taking maverickstaking mavericks mavericks who whowon’t who won’t won’t take take“no”take “no”f or“no” anfor fanswer, oran ananswer, answer, Cleve Cleve ClintonCleve Clinton Clinton knows knows knows If theIf defendant theIf the defendant defendant shows shows that shows sectionthat that section section16.009 16.009 16.009 whatwhat it whattakes it takes itto takes develop to todevelop develop creative creative creative solutions solutions solutions when when when appliesapplies appliesand theand and plaintiffthe the plaintiff plaintiff did notdid did filenot not hisfile file claimhis his claim claim big ideasbigbig ideas result ideas result inresult big in problems.inbig big problems. problems. Whether Whether Whether he’s he’s he’s withinwithin thewithin ten the -theyear ten ten- yearperiod,-year period, period,then thenthe then burden the the burden burdenshifts shifts shifts servingserving servingas lead as asleadcounsel lead counsel counsel in one in inofone onethe of growingofthe the growing growing to theto plaintiff theto the plaintiff plaintiff to show to showto an show exception an anexception exception or defense or ordefense defense to to to numbernumbernumber of fiduciaryof offiduciary fiduciary litigation litigation litigation claims claims claimswithin within within the statutethet hestatute statuteof repose. of ofrepose. 73repose. Section73 73Section Section 16.009 16.009 16.009contains contains contains familyfamily businesses,family businesses, businesses, advising advising advising a family a family a infamily transition, in transition,in transition, threethree exceptions.three exceptions. exceptions.74 It will74 It74 notwillIt will bar not notclaims: bar bar claims: claims:“(1) on“(1) “(1) on on or helpingor orhelping helping a developer a developer a developer sidestep sidestep sidestep a legal a legal anda legal public and and public public a writtena writtena writtenwarranty, warranty, warranty, guaranty, guaranty, guaranty, or other or otheror contract other contract contract that that that relationsrelationsrelations disaster disaster disaster in a new in ain residentialnew a new residential residential community, community, community, expresslyexpresslyexpressly provides provides provides for a forlonger for a longer a period;longer period; period;(2) against (2) (2) against against Cleve’sCleve’sCleve’s focus focus is focus always is always is thealways same the the same – understandsame – understand – understand and and and a persona persona inperson actual in actualin possession actual possession possession or control or controlor controlof the of real theof the real real achieveachieveachieve the client’s the the client’s client’sgoals, goals, eithergoals, either in either or in out inor of orout theout of ofthe the propertypropertyproperty at the at timeatthe the timethat time thethat that damage,the the damage, damage, injury, injury, injury,or or or courtroom.courtroom.courtroom. His clients His His clients spanclients spannearly span nearly every nearly every industry, every industry, industry, deathdeath deathoccurs; occurs; occurs;[and] [and] [and](3) based(3) (3) based basedon on willful onwillful willful includingincludingincluding beverage beverage beverage distribution, distribution, distribution, real real estate,real estate, estate, misconductmisconductmisconduct or fraudulent or orfraudulent fraudulent concealment concealment concealment with withthe with the the manufacturing,manufacturing,manufacturing, telecommunications telecommunicationstelecommunications and andand performanceperformanceperformance of the of construction ofthe the construction construction or repair.” or orrepair.” repair.”75 The75 The75 The transportation.transportation.transportation. secondsecond secondexception exception exception is the is mostisthe the mostsignificant, most significant, significant, as it as asit it preservespreservespreserves the property the the property property owner’s owner’s owner’s continuing continuing continuing duty dutyto duty to to Bill BillDrabble,Bill Drabble, Drabble, Partner-Elect Partner-Elect Partner-Elect – Gray – Gray– ReedGray Reed &Reed & & warnwarn orwarn make or ormake safe make safedangerous safe dangerous dangerous conditions conditions conditions on the on onthe the McGraw McGraw McGraw LLP LLP, Houston LLP, Houston, Houston - - - property.property.property. [email protected]@[email protected] Bill DrabbleBillBill Drabble Drabble focuses focuses focuses his practice his his practice practice on representing on onrepresenting representing In addition,In In addition,addition, section section section16.009 16.009 16.009allows allows allows propertypropertyproperty owners, owners,owners, landlords, landlords,landlords, tenants tenants tenantsand andand potentialpotentialpotential plaintiffs plaintiffs plaintiffs to extend to extendto theextend repose the the repose periodrepose period byperiod by by developersdevelopersdevelopers in real in inestatereal real estate litigationestate litigation litigation before before courtsbefore courts courts providingprovidingproviding a written a a written writtenclaim claim claimfor fordamages,for damages,damages, throughoutthroughoutthroughout North North Texas, North Texas, includingTexas, including including disputes disputes disputes over over over contribution,contribution,contribution, and indemnificationand and indemnification indemnification to the to pot tothe entialthe pot potential ential land landsales,land sales, sales,breaches breaches breaches of leaseof oflease agreements,lease agreements, agreements, defendantdefendantdefendant within within thewithin ten the -theyear ten ten- yearperiod.-year period. 76period. Providing76 Providing76 Providing premises-liabilitypremises-liabilitypremises-liability claims claims claimsand and otherand other disputesother disputes disputes a writtena writtena writtenclaim claim willclaim willextend will extend extendthe periodthe the period periodfor twofor for two two involvinginvolvinginvolving commercial commercial commercial and residentialand and residential residential properties. properties. properties. yearsyears fromyears from the from date the the thedate date claim the the claim is claim presented. is presented.is presented.77 77 77 He alsoHeHe handlesalso also handles handles a wide a wide avariety wide variety varietyof intra-company of ofintra-company intra-company disputes,disputes,disputes, such such assuch prosecutingas asprosecuting prosecuting and anddefending and defending defending ConclusionConclusionConclusion claimsclaims claimsfor breachesfor for breaches breaches of shareholder of ofshareholder shareholder or company or orcompany company agreement,agreement,agreement, breach breach breachof offiduciary of fiduciaryfiduciary duty dutyduty SectionSectionSection 16.009 16.009 16.009of the of Civilofthe the Civil Practice Civil Practice Practice and and and claimsclaims claimsagainst against againstdirectors directors directors and and officers,and officers, officers, and and and RemediesRemediesRemedies Code Code is Code useful is isuseful in useful defending in defendingin defending negligence negligence negligence contestscontestscontests for controlfor for control controlover over theover company.the the company. company. Bill’s Bill’s Bill’s or personalor orpersonal personal-injury-injury -injuryclaims claims claimsarising arising arisingout outof out aof ofa a practicepracticepractice also also includesalso includes includes appeals. appeals. appeals. He wasHe He was thewas the the dangerousdangerousdangerous condition condition condition on real on onproperty.real real property. property. With With a fewWith a few a few principalprincipalprincipal author author authorof briefs of ofbriefs briefsfiled filed infiled thein intheFifth the Fifth Fifth narrownarrow narrowexceptions, exceptions, exceptions, the statute the the statute appliesstatute applies appliesbroadly broadly broadly to to to Circuit,Circuit,Circuit, intermediate intermediate intermediate appellate appellate appellate courts courts andcourts andthe and the the TexasTexas SupremeTexas Supreme Supreme Court. Court. Court.

71 Id. 71 Id.71 Id. 72 Id. 72 Id.72 Id. judgmentjudgmentjudgment for the for defendant forthe thedefendant defendant because because thebecause plaintiff the theplaintiff plaintifffailed failed failed 73 See73 Nw. See73 SeeAustin Nw. Nw. Austin Mun. Austin Mun.Util. Mun. Dist.Util. Util. No.Dist. Dist. 1 No.v. CityNo. 1 v. 1 of Cityv. Austin City of Austinof, Austin, , to raiseto araiseto fact raise aissue fact a fact onissue anissue onexception anon exceptionan exception to the tostatute theto thestatute of statute of of 274 S.W.3d274274 S.W.3d S.W.3d820, 820,836 820, (Tex.836 836 (Tex.App. (Tex. —App. AustinApp.—Austin— 2008,Austin 2008, pet.2008, pet. pet. repose).repose). 74repose). TEX 74. CT 74IVEX T. .PEX CRACIV. C. .IVP &RAC. PRRACEM. &. .CR &ODEEM R.EM CAODE.NN CODE. A§ NN A.NN § . § denied);denied); denied);see also see see Rylandalso also Ryland Grp.,Ryland Grp.,Inc. Grp., v. Inc. Hood Inc. v. ,Hood v.924 Hood ,S.W.2d 924, 924 S.W.2d S.W.2d 16.009(e).16.009(e).16.009(e). 120, 121120,120, (Tex.121 121 (Tex.1996) (Tex. 1996)(per 1996) curiam)(per (per curiam) (renderingcuriam) (rendering (rendering summary summary summary 75 Id. 75 Id.75 Id. 76 Id. §76 16.009(c).Id.76 Id.§ 16.009(c). § 16.009(c). 77 Id. 77 Id.77 Id. Texas Association of Defense Counsel | Fall/Winter 2019 23