Warranty Statute of Limitations Begins Running with Tender of Delivery
It seems to be such a basic proposition: the statute of limitations for breach of warranty begins running with tender of the goods for delivery. But it's amazing how often the issue gets litigated, with plaintiffs asserting a discovery rule.
In Mitchell v. Skyline Homes, the court granted the defendant's motion to dismiss on various warranty and other claims. Plaintiffs alleged that the "manufactured homes" sold by defendant were defective because they lacked a secondary water barrier. The defendant asserted the statute of limitations as a defense, noting that plaintiff's mobile home was purchased in 1997, but the action was not brought in court until June 2009.
The express warranty provided that "manufacturing defects reported to Skyline within 15 months after original retail delivery will be corrected without charge within a reasonable time." Even if the 15-month period extended the statute of limitations beyond the four years after delivery, it did not reach all the way to 2009. The court held the express warranty claim was time-barred.
As for the implied warranty claim, the court held that even if the bar to vertical privity could be overcome, the statute only ran from the date of delivery, i.e., from 1997 to 2001.
The court also dismissed the Consumer Legal Remedies Act claim because the product performed properly throughout the express warranty period.
It also dismissed the Unfair Competition Law claim because it was necessarily dependent upon the breach of express warranty claim, which was time-barred.
