Gensler v. Korb Roofers, Inc.

Gilbert, C. J., delivered the opinion of the Court. The appellants, Herman H. Gensler and Rhoda M. Gensler, his wife, in May 1976, filed a declaration grounded on breach of warranty, in the Circuit Court for Howard County against Korb Roofers, Inc. (Korb), the appellee and John N. Bowers, Inc. (Bowers). The declaration averred that Korb “was the roofing subcontractor for . . . Bowers” on the property known as 11005 Elves Way, Columbia, Howard County, Maryland.

Gensler said that he purchased the property, a new home, from Bowers “on or about April 1973” for the sum of $76,000. According to Gensler’s brief, the “roof began to leak three months later.” Korb was notified and one of its employees visited the property, but no corrective action was undertaken by Korb. Gensler’s declaration recited: “That there has resulted, a breach of the warranties by John N. Bowers, Inc., said warranties being that the house was built to good engineering standards, free of defects and fit for use as a residence, said roof and roof drains being included among those parts of the house so warranted; but that in fact, the roof and roof drains were improperly constructed, in that the Defendant, John N. Bowers, Inc., and the Defendant Korb Roofers, Inc., failed to install the roof and drain system on the roof, in a good and workmanlike manner, and failed to pitch the roof in a good and workmanlike manner; all of which are in breach of the aforesaid warranties, and which have caused the leaks complained of herein. That as a direct result of the Defendants’ acts as aforesaid, the Plaintiffs ⁵⁴⁰ [Gensler] have had serious damage to the interior of their house, and have been and will be in the future, obligated to expend large sums of money to repair the roof and drain systems.

That they have lost the partial use of their home.” (Emphasis supplied.) Bowers 1 and Korb filed demurrers. Korb asserted that there was no privity of contract between itself and Gensler and, additionally, Korb raised the defense of the Statute of Limitations. Md. Real Prop. Code Ann. § 10-204 (c).

That section mandates: “Any action arising under this subtitle shall be commenced within two years after the defect was discovered or should have been discovered or within two years after the expiration of the warranty, whichever occurs first.” It is, of course, apparent on the face of the declaration that the action for breach of warranty was barred by Md. Real Prop. Code Ann. § 10-204 (c). Apparently, without waiting for a ruling on the demurrer, Gensler filed an amended declaration on September 10,1976. A belated leave to amend order was obtained from the court on September 24, 1976. 2 The amended declaration, filed only against Korb, asserted that: “Korb . .. failed to install the roof and drain system on the roof, in a good and workmanlike manner and failed to pitch the roof in a good and workmanlike manner, all of which failures have caused the leaks complained of herein.

As a direct result of the Defendant’s [Korb’s] negligence as aforesaid, the . .. roof collected a pool pf water whose weight threatened to collapse the roof, and it permitted water to enter the house causing severe damage to its interior. The Plaintiffs [Gensler] ⁵⁴¹ have been and will be in the future obligated to expend large sums of money to repair the roof and roof drain systems. They have lost the partial use of their house.” (Emphasis supplied.) The amended declaration, like its predecessor, was met by a demurrer. That demurrer interposed the question of limitations as well as lack of privity between the parties. 3 Judge James Macgill, after oral argument, sustained the demurrer without leave to amend, and this appeal ensued.

Our reading of the record discloses that Judge Macgill did not ground his decision on the question of limitations but rather on the basis that under existing Maryland law “a sub-contractor is [not] liable for negligent construction to the owner that purchases the home.” Gensler puts two questions to us. He asks: “1. Does Maryland law permit third parties foreseeably damaged by the negligence of contractors with whom they have not dealt to recover in tort against these contractors? 2. Did the Appellee’s [Korb’s] dealings with .. . [Gensler] after the transfer of the house constitute the privity required in contract?” The first issue is actually an overly broad question bearing upon this case only because of its massive sweep.

In any event, we shall not endeavor to answer it or the second issue because it is apparent from the record that the cause of action, if indeed there be one, is barred by the Statute of Limitations, in warranty by Md. Real Prop. Code Ann. § 10-204 (c), and in negligence by Md. Cts. & Jud. Proc. Code Ann. § 5-101. 4 ⁵⁴² Assuming, arguendo, that there was privity of contract between Gensler and Korb, the general rule is that the period of limitations begins to run from the date of the breach, for it is then that the cause of action accrues and becomes enforceable.