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Watkins v. Tankersley Construction6/29/2005
This case involves the issue of whether the remedy for the wrong committed has been legislatively precluded. The chronology of events and relevant facts are undisputed. In the fall of 1992, Munford Development Company ("Munford"), a corporation, purchased the residential lot at issue in Munford, Tennessee. Defendant/Appellee Charles Walker ("Walker") was a shareholder and the president of Munford at the time. Defendant/Appellee Charles Walker Enterprises ("Walker Enterprises") is a sole proprietorship owned by Walker. Walker Enterprises performs bulldozer and elevation work for construction job sites. Munford paid Walker Enterprises to do dozer and elevation work on the residential lot, and to fill the land to make it suitable as a building site for a house. Neither Walker, individually, nor Walker Enterprises ever had any ownership interest in the lot or the development. On November 5, 1993, Munford sold the lot at issue to Tankersley Construction, Inc. ("Tankersley Construction"). Tankersley Construction built a house on the lot that became 130 Kilkenny Drive. The house was substantially completed by March 1994.
On March 25, 1994, Tankersley sold the lot and house to John and Mary Woods (collectively, "the Woods"). On February 3, 1997, the Woods sold the lot and house to Plaintiffs/Appellants Rick and Ellen Watkins (collectively, "the Watkins"). The Watkins moved into the house shortly thereafter.
On April 12, 1997, only weeks after they moved into the house, the Watkins discovered structural damage to the house resulting from abnormal settlement. The walls of the house had significant cracks, which caused leaks and other serious problems. The Watkins began to try to determine the cause of the structural damage to their home. Finally, they obtained an inspection of the lot on which the house was built. They found that, when the lot was filled and graded in preparation for the construction, biodegradable materials such as tree stumps and roots were used as fill. When this matter began to decay, the house settled unevenly, resulting in the structural damage.
On April 3, 2000, the Watkins filed the instant lawsuit against Munford, Tankersley Construction, O'Neal Tankersley, individually and d/b/a Tankersley Construction, Walker Enterprises, and Walker, individually and d/b/a Walker Enterprises, for their negligence in the development of the property and the improper grading and filling of the building site. The Watkins asserted in their complaint that, in the filling of the site, the soil impaction was improper, and that the site was filled with biodegradable materials that had decayed over time. When the fill material decayed, the complaint alleged, the house on the site began to settle at an abnormal rate. Mrs. Watkins later filed an affidavit describing the manifestations of the accelerated settlement of the house. In the affidavit, she said that cracks began to appear all over the home, with new cracks appearing " ach and every day," and with the house audibly "cracking as it settles." She stated that the abnormal settling of her home had resulted in significant leaks throughout the home, and necessitated the rebuilding of the front porch, the replacing of supports, and other remedial measures. In the affidavit, Mrs. Watkins asserted that the damage to the house was caused by the instability of the lot, and that the house is now unmarketable due to that instability.
All parties filed motions for summary judgment. The defendants argued that the Watkins' lawsuit was barred by the four-year statute of repose found in Tennessee Code Annotated ยง 28-3-202:
Limitation of actions.-All actions to recover damages for any deficiency in the design, plann
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