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RICHARDS v. MIDLAND BRICK SALES CO.5/31/1996
rt law and contract law to determine whether a loss is compensable in tort or in contract. If the damage was a foreseeable result from the failure of a product to work properly, the remedy lies in contract, since the loss relates to a consumer's disappointed expectations due to deterioration, internal breakdown or nonaccidental cause. Nelson, 426 N.W.2d at 125. On the other hand, when the harm is a sudden or dangerous occurrence resulting from a general hazard in the nature of the product defect, tort remedies are generally appropriate because the harm could not have been reasonably anticipated by the parties. Id.
In this case, Richards argues she has suffered more than economic loss because the defective brick caused actual damage to her home. We reject this argument for two reasons. First, Richards submitted no evidence to show the brick caused actual damage to other portions of her home. See Pulte Home Corp. v. Osmose Wood Preserving, Inc., 60 F.3d 734, 742 (11th Cir. 1995) (plaintiff suffered only economic losses due to defective plywood used on roof of house even though it was necessary to remove and replace existing shingles and other roof components to replace defective plywood since the components were not damaged by the plywood, but replaced as a consequence of repairing the plywood). The damage in this case was limited to the product itself. Second, the policies underlying contract law relate to the nature of the damage claimed by Richards. The remedy for the economic loss and disappointment associated with the alleged failure of the bricks clearly lies in contract. Therefore, any recovery must be based on contract law, such as a breach of an express or implied warranty. The trial court [551 NW2d Page 652]
correctly dismissed the negligence and strict liability claims.
III. Statute of Limitations
The five-year statute of limitations governs actions for breach of implied warranty. Fell v. Kewanee Farm Equipment Co., 457 N.W.2d 911, 919 (Iowa 1990). Such actions must be filed within five years after they accrue. Iowa Code § 614.1(4) (1993). Actions for breach of implied warranty accrue when delivery is made, regardless of the lack of knowledge of the breach. Iowa Code § 554.2725(2). The discovery rule applies only when a warranty of future performance has been made, so that discovery of a breach must await performance. See id.
Richards claims the statute of limitation does not apply because the transaction was not a sale of goods but the rendition of services. We find nothing in the record to suggest Midland supplied services to Richards. The transaction involved the sale of goods to a building contractor, and therefore, the limitation period defined by Iowa Code section 554.2725(2) applies. Accordingly, Richard's claim for breach of implied warranty expired in 1988. The trial court properly dismissed her claim.
AFFIRMED.
SACKETT and VOGEL, JJ., take no part.
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