Opinion ID: 2229859
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Heading: Statutes of Limitations and Repose.

Text: Iowa Code section 614.1 sets forth both general and specific provisions limiting the time periods in which actions may be brought. In general, actions for injuries to property and for relief on the ground of fraud must be brought within five years, and actions founded on written contracts must be brought within ten years. See Iowa Code §§ 614.1(4), (5). The general provisions of section 614.1 establish a limitations period that begins to run when the cause of action accrues. It is well settled that no cause of action accrues under Iowa law until the wrongful act produces loss or damage to the claimant. See, e.g., Scott v. City of Sioux City, 432 N.W.2d 144, 147 (Iowa 1988); Sandbulte v. Farm Bureau Mut. Ins. Co., 343 N.W.2d 457, 462 (Iowa 1984). While Iowa Code chapter 614 is captioned Limitations of Actions, subsection 614.1(11) is, in effect, a statute of repose. Statutes of repose are different from statutes of limitation, although they have comparable effects. Hanson v. Williams County, 389 N.W.2d 319, 321 (N.D.1986). A statute of limitations bars, after a certain period of time, the right to prosecute an accrued cause of action. By contrast, a statute of repose terminates any right of action after a specified time has elapsed, regardless of whether or not there has as yet been an injury. Id. at 321. A statute of repose period begins to run from the occurrence of some event other than the event of an injury that gives rise to a cause of action and, therefore, bars a cause of action before the injury occurs. Id.; see also Blaske v. Smith & Entzeroth, Inc., 821 S.W.2d 822, 834 (Mo.1991). Under a statute of repose, therefore, the mere passage of time can prevent a legal right from ever arising. See Koppes v. Pearson, 384 N.W.2d 381, 385 (Iowa 1986) (analyzing Iowa Code subsection 614.1(9) relating to medical malpractice claims); Harris v. Clinton Corn Processing Co., 360 N.W.2d 812, 816-17 (Iowa 1985) (interpreting a Tennessee statute of repose). Initially, McKiness contends that because its cause of action is based on a defective design, the action arose at the time the buildings were completed in 1971 and 1974. Morton challenges this contention noting that if the completion dates are used for accrual of the cause of action, then the claims are barred by either of the general limitations periods of subsection 614.1(4) or (5). McKiness then counters this argument by raising the application of the discovery rule to its claims. Under the discovery rule, a cause of action based on negligence does not accrue until plaintiff has in fact discovered that he has suffered injury or by exercise of reasonable diligence should have discovered it.... Chrischilles v. Griswold, 260 Iowa 453, 150 N.W.2d 94, 100 (1967). We have applied the discovery rule to a variety of claims including negligence, products liability, and warranty. See, e.g., Franzen v. Deere & Co., 334 N.W.2d 730, 732 (Iowa 1983) (products liability); Brown v. Ellison, 304 N.W.2d 197, 201 (Iowa 1981) (express and implied warranties); Chrischilles, 150 N.W.2d at 100-01 (negligence). Although the alleged negligent acts are traceable to the construction dates, no cause of action accrued until the acts or omissions produced injury. Chrischilles, 150 N.W.2d at 100. We find no evidence in the record that McKiness knew or should have known of any potential design defects prior to the collapse of the first building in 1991. It was at that point McKiness sought an expert opinion on the cause of the collapse and the potential problems with the second building. The district court's conclusion that the claims for implied warranty, negligence and strict liability accrued in 1991, rather than 1971 and 1974, is correct. Our review, however, does not end here. The district court granted Morton's motion for summary judgment on the basis of a special limitations provision. We must now examine the scope and the constitutionality of this statute.