by KPMLAW | Jan 16, 2017 | KPMBlog, News, Uncategorized
Written by Stephanie Gacek Cook, Esq. There have been a number of suits filed by Virginia Polytechnic Institute & State University (“Virginia Tech”) against several general contractors who constructed various buildings on campus. In turn, these general contractors have filed suit or at least initiated claims against many of its subcontractors who performed work on these projects. The statute of limitations for claims filed by a state agency or public institution, such as Virginia Tech, is unlimited. According to Va. Code Ann. 8.01-231, “[n]o statute of limitations which shall not in express terms apply to the Commonwealth shall be deemed a bar to any proceeding by or on behalf of the same.” In other words, no statute of limitations applies to the state of Virginia or its governmental bodies and agencies. Recently, however, the Supreme Court of Virginia issued an opinion that makes it clear that this unlimited statute of limitations does not also apply to claims made by general contractors against its subcontractors on projects involving state agencies. See Hensel Phelps Construction Company v. Thompson Masonry Contractor, Inc., et. al., 2016 Va. LEXIS 166, 791 S.E.2d 734. In Hensel Phelps, Virginia Tech awarded Hensel Phelps a contract to construct the Student Health & Fitness Center in 1997. The work was substantially completed in 1998. Virginia Tech issued final payment to Hensel Phelps in 1999, and Hensel Phelps issued final payment to its subcontractors also in 1999. One subcontractor was asked to fix a problem covered by their warranty, and it concluded all work by June of 2000. Virginia Tech subsequently discovered other, defective work and elected to repair...
