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Washburn v. Beatt Equipment Co.

11/25/1992

ry standards. One expert testified, without objection, that these failures by defendant caused the explosion. VRP vol. 6, at 215. There was expert testimony that the pipe was significantly thinner than called for in the specifications. VRP vol. 6, at 196; vol. 7, at 323. The pipe was not properly prepared before it was welded, wrapped and coated. As a result corrosion was inevitable. VRP vol. 7, at 322, 337-38. The coating which is applied to the welded and wrapped joints is critical to protection against corrosion. The specifications called for a coal-tar enamel; defendant used cheaper, less durable and more permeable asphalt coating, and applied a thickness roughly a third less than specified. VRP vol. 5, at 273-83. The thinner coating would "definitely decrease the life of the coating." VRP vol. 5, at 282-83.


A coatings expert testified, without objection, that the improper coating material, applied at less thickness than specified, contributed to the corrosion which caused the explosion. VRP vol. 5, at 283.


The coating was damaged before the pipe was buried. VRP vol. 6, at 204. The backfill material did not meet specifications; consequently chunks of asphalt material damaged the coating. This was a very important defect. VRP vol. 6, at 201-02, 205. The experts testified that the installation was substandard, and that the variations from the specifications and industry standards were "greatly significant." VRP vol. 6, at 199, 211. The experts testified, without objection, that these deficiencies were the proximate cause of the explosion.


With that background we turn to the heart of the question of liability. The only defense to liability asserted on


appeal is the statute of repose. Defendant argues that it constructed an improvement upon real property within the reach of RCW 4.16.300. Under RCW 4.16.300 and .310, a cause of action must accrue within 6 years of substantial completion of the improvement, and then a claimant must file suit within the applicable statute of limitations. Del Guzzi Constr. Co. v. Global Northwest Ltd., 105 Wash. 2d 878, 883, 719 P.2d 120 (1986). Defendant argues that plaintiffs' cause of action would have to have accrued within 6 years of completion of its work.


However, the statute of repose is subject to an exception, i.e., it "shall not apply to claims or causes of action against manufacturers". RCW 4.16.300.


Because of this particular record, we have a very narrow issue concerning whether defendant was a "manufacturer" within the proviso in RCW 4.16.300. More particularly, if there was a jury question whether defendant was a manufacturer, affirmance is required.


First, however, we note plaintiffs' argument that the pipeline was not an "improvement upon real property" within the meaning of RCW 4.16.300, contrary to the trial court's determination. If the pipeline was not an improvement to real property, RCW 4.16.300 simply does not apply and the builder's statute of repose, RCW 4.16.310, does not bar the suit. We base our decision in this case upon other grounds, however, and assume, without deciding, that the pipeline was an improvement upon real property, as the trial court held.


Second, we dispose of the alternative product seller theory of liability. Plaintiffs were allowed to pursue their claim that defendant was a product seller to whom the statute of repose did not apply. It is true, as plaintiffs claim, that the jury necessarily found defendant to be

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