Romero v. Amburn , 323 Or. App. 410 ( 2022 )


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  •                                        410
    Argued and submitted September 26, affirmed December 29, 2022, petition for
    review denied May 18, 2023 (
    371 Or 106
    )
    Mitchell ROMERO,
    Plaintiff-Appellant,
    v.
    Shannon C. AMBURN,
    dba Amburn Construction, LLC,
    dba Equity Quest Homes, LLC,
    dba SCA Construction, LLC,
    dba Kan Construction, LLC,
    Defendant-Respondent,
    and
    John DOES 1-20,
    Defendants.
    AMBURN CONSTRUCTION, LLC,
    an Oregon Limited Liability Company,
    Third-Party Plaintiff-Respondent,
    v.
    NSC INSTALLATION, LLC,
    an Oregon limited liability company; and
    Bradley R. Schmautz and Marcus Blackmon,
    individuals dba Reliable Construction,
    Third-Party Defendants-Respondents.
    Multnomah County Circuit Court
    18CV15985; A175063
    523 P3d 1135
    Plaintiff purchased a newly built house from defendant in 2008. In 2017, he
    discovered that construction defects had caused extensive damage to the house.
    He later brought this action for breach of contract and negligence. The trial court
    dismissed the claims on statute-of-limitations grounds. On appeal, plaintiff chal-
    lenges the dismissal of the contract claims, arguing that the six-year statute of
    limitations for contract claims in ORS 12.080(1) is subject to the discovery rule.
    Plaintiff argues that Waxman v. Waxman & Associates, Inc., 
    224 Or App 499
    ,
    198 P3d 445 (2008), in which the Court of Appeals rejected a virtually identical
    argument, was implicitly overruled by the Supreme Court in Rice v. Rabb, 
    354 Or 721
    , 320 P3d 554 (2014). Held: ORS 12.080(1) is not subject to the discovery
    rule. A long line of case law recognizes that a breach of contract action accrues
    upon breach. Although there is some tension between that long-established prin-
    ciple and the Rice line of case law, the two lines of case law are not necessarily
    irreconcilable so as to result in implicit overruling. The trial court therefore did
    Cite as 
    323 Or App 410
     (2022)                                        411
    not err in granting summary judgment for defendant based on the statute of
    limitations.
    Affirmed.
    Thomas W. Brown, Judge pro tempore. (Judgment)
    Michael A. Greenlick, Judge. (Supplemental Judgment)
    Benjamin M. Karlin argued the cause and filed the briefs
    for appellant.
    Jonathan Henderson argued the cause for respondents
    Shannon C. Amburn and Amburn Construction, LLC. Also
    on the brief were Samuel K. Anderson and Davis Rothwell
    Earle & Xóchihua, P.C.
    No appearance for respondents NSC Installation, LLC,
    Bradley R. Schmautz, and Marcus Blackmon.
    Before James, Presiding Judge, and Aoyagi, Judge, and
    Joyce, Judge.
    AOYAGI, J.
    Affirmed.
    412                                                    Romero v. Amburn
    AOYAGI, J.
    Plaintiff purchased a newly built house from defen-
    dant in 2008. Nearly 10 years later, he brought this action
    alleging hidden construction defects. Defendant moved for
    summary judgment on the contract claims, based on the
    six-year statute of limitations in ORS 12.080(1). Plaintiff
    opposed, arguing that the discovery rule applies to ORS
    12.080(1), by virtue of ORS 12.010. Relying on established
    case law that a breach of contract action accrues upon
    breach—including Waxman v. Waxman & Associates, Inc.,
    
    224 Or App 499
    , 198 P3d 445 (2008), in which we rejected
    an argument virtually identical to plaintiff’s—the trial
    court granted summary judgment for defendant. Plaintiff
    appeals, arguing that the Supreme Court implicitly over-
    ruled Waxman in Rice v. Rabb, 
    354 Or 721
    , 320 P3d 554
    (2014). Plaintiff contends that, under Rice’s reasoning,
    the discovery rule necessarily applies to ORS 12.080(1).
    As explained below, we recognize some potential tension
    between, on the one hand, Rice and its progeny, and on
    the other, Waxman and the line of cases on which it relies.
    However, we are unpersuaded that the two lines of cases are
    necessarily irreconcilable such that one implicitly overruled
    the other. Absent clearer guidance from the Supreme Court,
    we stand by existing precedent that ORS 12.080(1) is not
    subject to the discovery rule. Accordingly, we affirm.
    FACTS1
    Defendant is a builder. In 2007, defendant built the
    house at issue in this case. The house was built on specu-
    lation, that is, without a buyer under contract. Defendant
    received the final occupancy permit in August 2007.
    In April 2008, plaintiff contracted with defendant
    to purchase the house for $250,000. The sale closed in May
    2008.
    Nine and one-half years later, in October 2017, plain-
    tiff learned that the house had not been constructed prop-
    erly, resulting in water intrusion and extensive damage. In
    1
    When reviewing a grant of summary judgment, we state the facts from the
    summary judgment record in the light most favorable to the nonmoving party.
    Wirth v. Sierra Cascade, LLC, 
    234 Or App 740
    , 745, 230 P3d 29, rev den, 
    348 Or 669
     (2010). We therefore state the facts in the light most favorable to plaintiff.
    Cite as 
    323 Or App 410
     (2022)                                               413
    April 2018, plaintiff brought this action. The operative com-
    plaint contains both contract and negligence claims against
    defendant. Only the contract claims are at issue on appeal,
    so we limit our discussion to those claims. Plaintiff alleged
    that the parties’ contract required defendant to deliver to
    plaintiff “a habitable residence free of material defects,”
    that defendant had breached the contract by delivering a
    house with numerous defects, and that defendant had also
    breached the implied warranty of habitability. Plaintiff
    alleged that all of the defects were “hidden” and that plaintiff
    was “entirely unaware” of them until October 2017. Plaintiff
    sought $162,000 in damages for repairs to the house.
    Defendant moved for summary judgment. As rele-
    vant here, defendant argued that plaintiff’s contract claims
    were time-barred by the six-year statute of limitations in
    ORS 12.080(1), as the action was filed more than six years
    after the alleged breach. Plaintiff opposed the motion, argu-
    ing that the discovery rule applies and that there was a
    genuine dispute of material fact as to when plaintiff should
    have known of the defects. Relying on established case law
    that a breach of contract action accrues upon breach, includ-
    ing Waxman, 
    224 Or App 499
    , the trial court concluded that
    the discovery rule does not apply to ORS 12.080(1) and con-
    sequently, that plaintiff’s contract claims were time-barred
    by the statute of limitations. The court granted summary
    judgment for defendant on that basis.2
    Plaintiff appeals the resulting judgment. In his sole
    assignment of error, plaintiff challenges the summary judg-
    ment ruling on the contract claims.
    ANALYSIS
    Summary judgment is to be granted when “the
    pleadings, depositions, affidavits, declarations, and admis-
    sions on file show that there is no genuine issue as to any
    2
    The trial court did not reach defendant’s alternative argument that the
    contract claims were time-barred under ORS 12.115(1), the 10-year statute of
    ultimate repose for actions for negligent injury to person or property. Defendant
    raises that issue again on appeal, as an alternative basis to affirm the summary
    judgment ruling, arguing that ORS 12.115(1) should apply because the contract
    claims were essentially identical to the negligence claims. We need not reach that
    issue, given our disposition.
    414                                                     Romero v. Amburn
    material fact and that the moving party is entitled to pre-
    vail as a matter of law.” ORCP 47 C. In this case, whether
    defendant was entitled to summary judgment turns entirely
    on whether ORS 12.080(1)—which imposes a six-year stat-
    ute of limitations on most contract claims—is subject to the
    discovery rule.
    The discovery rule is “a rule of interpretation of
    statutes of limitation that has the effect of tolling the com-
    mencement of such statutes under certain circumstances.”
    Rice, 
    354 Or at 725
     (internal quotation marks omitted).
    When the discovery rule applies, the limitations period runs
    “from the earlier of two possible events: (1) the date of the
    plaintiff’s actual discovery of injury; or (2) the date when
    a person exercising reasonable care should have discovered
    the injury, including learning facts that an inquiry would
    have disclosed.” 
    Id.
     (internal quotation marks and emphases
    omitted). Whether the discovery rule applies to a particu-
    lar statute of limitations is a question of law, specifically
    statutory construction, making the key inquiry whether the
    legislature intended to incorporate a discovery rule into the
    particular statute. Hammond v. Hammond, 
    296 Or App 321
    ,
    332, 438 P3d 408 (2019).
    Here, everyone agrees that the relevant statute of
    limitations is ORS 12.080(1). ORS 12.080(1) provides that,
    subject to certain exceptions not relevant here, “[a]n action
    upon a contract or liability, express or implied * * * shall be
    commenced within six years.”3 That means that the action
    must be commenced within six years of when it “accrues.”
    See ORS 12.010 (“Actions shall only be commenced within
    the periods prescribed in this chapter, after the cause of
    action shall have accrued, except where a different limita-
    tion is prescribed by statute.”).
    3
    ORS 12.080(1) contains exceptions for actions “mentioned in ORS 12.070,
    12.110 and 12.135” and “as otherwise provided in ORS 72.7250.” None of those
    exceptions are relevant here. See ORS 12.070 (statute of limitations for actions on
    court judgments, decrees, and certain sealed instruments); ORS 12.110 (statute
    of limitations for actions on assault, battery, false imprisonment, certain per-
    sonal injuries, forfeiture, penalty, overtime or premium pay, medical or dental
    treatment, and nuclear incidents); ORS 12.135 (statute of repose for actions aris-
    ing from the construction, alteration, or repair of real property, or the design,
    planning, surveying, architectural, or engineering services for an improvement
    to real property); ORS 72.7250 (statute of limitations for actions for breach of a
    contract of sale under the Oregon Uniform Commercial Code).
    Cite as 
    323 Or App 410
     (2022)                             415
    For more than 50 years, it has been established law
    that a breach of contract action accrues at the time of breach.
    The earliest decisions in that line of cases sought only to pin
    down when a known claim could be brought. In Pierce v.
    Pierce, 
    153 Or 248
    , 253, 
    56 P2d 336
     (1936), the court stated,
    “Until a payor in a contract defaults, no action may be main-
    tained against him on the contract. When default is made,
    an action may be brought against the payor any place where
    he may be found.” In Weaver et al v. Williams, 
    211 Or 668
    ,
    676, 
    317 P2d 1108
     (1957), the court quoted approvingly from
    Williston on Contracts, including the statement, “As soon as
    a party to a contract breaks any promise he has made, he
    is liable to an action.” (Internal quotation marks omitted.)
    The court repeated the same statement in Hollin v. Libby,
    McNeill & Libby, 
    253 Or 8
    , 13, 
    452 P2d 555
     (1969).
    By 1972, however, the Supreme Court began speak-
    ing expressly in terms of “accrual.” In Seattle-First Nat’l Bk.
    v. Ore. Pac. Ind., 
    262 Or 578
    , 583, 
    500 P2d 1033
     (1972), the
    defendant stipulated to having breached certain contracts
    on a particular date, but it denied having stipulated to that
    date being when the cause of action accrued. The court
    rejected that distinction, stating, “The normal inference is
    that the cause of action accrues at the time the breach of
    contract occurs.” Twenty-four years later, in Vega v. Farmers
    Ins. Co., 
    323 Or 291
    , 293, 295 n 2, 
    918 P2d 95
     (1996), the
    court addressed “when an action by an insured to enforce
    an insurer’s obligations under the underinsured motorist
    portion of an insurance policy” accrues for purposes of ORS
    12.080(1). Citing “well-established principles of contract
    law,” the court held “that, unless the insurance policy pro-
    vides otherwise, the statute of limitations for an action to
    enforce an insurer’s contractual obligation to pay UM/UIM
    benefits begins to run when the insurer breaches the con-
    tract.” 
    Id. at 296
    .
    We have regularly relied on the foregoing line of
    authority as establishing that a breach of contract action
    accrues at breach, triggering the statute of limitations. See,
    e.g., MAT, Inc. v. American Tower Asset Sub, LLC, 
    312 Or App 7
    , 15, 493 P3d 14 (2021) (“The statute of limitations on a
    claim for breach of contract is six years, and it begins to run
    at the time of contract breach.”); Doughton v. Morrow, 255
    416                                      Romero v. Amburn
    Or App 422, 432, 298 P3d 578, rev den, 
    353 Or 787
     (2013) (“It
    is well settled that a contract claim accrues on breach, and
    not when that breach is subsequently discovered.” (Internal
    quotation marks and brackets omitted.)); Frakes v. Nay, 
    254 Or App 236
    , 263, 295 P3d 94 (2012), rev den, 
    353 Or 747
    (2013) (under ORS 12.080, a contract claim “must be com-
    menced within six years of its accrual,” and it “is well set-
    tled that a contract claim accrues on breach, and not when
    that breach is subsequently discovered” (internal quotation
    marks omitted)); Pritchard v. Regence BlueCross BlueShield,
    
    225 Or App 455
    , 458, 201 P3d 290, rev den, 
    346 Or 184
     (2009)
    (“A claim for breach of contract accrues when the contract is
    breached.”); Waxman, 
    224 Or App at 512
     (“Although ORS
    12.010 provides that an action must be commenced within
    the applicable period after the cause of action accrues, it
    is well settled that a contract claim accrues on breach.”);
    Assn. of Unit Owners v. Far West Federal Bank, 
    120 Or App 125
    , 134, 
    852 P2d 218
     (1993) (“The statute of limitations
    for contract claims is six years. ORS 12.080(1). The cause
    of action for breach of contract accrues when the contract is
    breached.”); Kantor v. Boise Cascade Corp., 
    75 Or App 698
    ,
    703, 
    708 P2d 356
     (1985), rev den, 
    300 Or 506
     (1986) (“A cause
    of action for breach of contract accrues when the contract is
    breached.”).
    Meanwhile, a second line of case law has been
    developing in parallel, initially relating to when a medical
    malpractice action accrues. In 1964, the Supreme Court
    held in Vaughn v. Langmack, 
    236 Or 542
    , 547-48, 
    390 P2d 142
     (1964), that a cause of action for medical malpractice
    accrues at the time of the negligent act, not when the neg-
    ligence was or might reasonably have been discovered.
    However, only two years later, the court reversed course in
    Berry v. Branner, 
    245 Or 307
    , 
    421 P2d 996
     (1966), overrul-
    ing Vaughn, and adopting the opposite rule. Under Berry,
    a cause of action for medical malpractice accrues when the
    negligence was or might reasonably have been discovered.
    
    Id. at 316
    .
    The discovery rule articulated in Berry was soon
    extended to other types of negligence claims. See Moore v.
    Mutual of Enumclaw Ins. Co., 
    317 Or 235
    , 247, 
    855 P2d 626
    (1993) (stating same and citing cases). Without tracing the
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    323 Or App 410
     (2022)                                     417
    full evolution of the discovery rule, as it is unnecessary for
    present purposes, we jump forward to the Supreme Court’s
    2014 decision in Rice. The issue in Rice was whether the
    discovery rule applies to ORS 12.080(4). 
    354 Or at 723
    . ORS
    12.080(4) requires actions “for taking, detaining or injuring
    personal property, including an action for the specific recov-
    ery thereof, excepting an action mentioned in ORS 12.137,”
    to “be commenced within six years.” Because ORS 12.080(4)
    does not identify the event that begins the statute running,
    it is necessary to look to ORS 12.010, which applies to ORS
    chapter 12. 
    Id. at 727-28
    . ORS 12.010 provides, “Actions
    shall only be commenced within the periods prescribed in
    this chapter, after the cause of action shall have accrued,
    except where a different limitation is prescribed by statute.”
    (Emphasis added.) Read together with ORS 12.010, ORS
    12.080(4) provides for the statute of limitation to begin run-
    ning when the cause of action “ ‘accrue[s]’ within the mean-
    ing of ORS 12.010[.]” Rice, 
    354 Or at 728
     (first brackets in
    original).
    As for the meaning of “accrues,” the Rice court
    looked to Berry, which led it to conclude that the discovery
    rule applies to ORS 12.080(4). Rice, 
    354 Or at 728
    . The court
    summarized each step of its reasoning to reach that conclu-
    sion as follows:
    “ORS 12.080(4) provides that ‘[a]n action for taking, detain-
    ing or injuring personal property * * * shall be commenced
    within six years’ but it does not specify when the limitation
    begins to run. ORS 12.010 provides that actions ‘shall only
    be commenced within the periods prescribed in this chap-
    ter, after the cause of action shall have accrued,’ unless a
    different limitation is prescribed. Because a different lim-
    itation is not prescribed in ORS 12.080(4) or elsewhere, the
    six-year limitation begins to run when the cause of action
    accrues. Under such circumstances, a cause of action under
    ORS 12.080(4) ‘accrue[s]’ within the meaning of ORS 12.010,
    ‘at the time [a] plaintiff obtained knowledge, or reasonably
    should have obtained knowledge of the tort committed upon
    her person by [a] defendant.’ Berry, 
    245 Or at 316
    .”
    
    Id.
    Since Rice was decided, we have applied its reason-
    ing to several other statutes of limitations that fall within
    418                                         Romero v. Amburn
    the purview of ORS 12.010. In Tavtigian-Coburn v. All Star
    Custom Homes, LLC, 
    266 Or App 220
    , 222, 337 P3d 925
    (2014), and Goodwin v. Kingsmen Plastering, Inc., 
    267 Or App 506
    , 508, 340 P3d 169 (2014), aff’d on other grounds, 
    359 Or 694
    , 375 P3d 463 (2016), we relied on Rice and followed
    the same reasoning to hold that the discovery rule applies
    to ORS 12.080(3). ORS 12.080(3) requires actions “for waste
    or trespass upon or for interference with or injury to any
    interest of another in real property, excepting those men-
    tioned in ORS 12.050, 12.060, 12.135, 12.137 and 273.241,”
    to “be commenced within six years.” In Hammond, 
    296 Or App at 323, 332-34
    , which involved an ejectment claim, we
    relied on Rice and followed the same reasoning to hold that
    the discovery rule applies to ORS 12.050. ORS 12.050 pro-
    vides that “[a]n action for the recovery of real property, or for
    the recovery of the possession thereof, shall be commenced
    within 10 years.” And, in Hayes Oyster Co. v. DEQ, 
    316 Or App 186
    , 200, 504 P3d 15 (2021), rev den, 
    369 Or 507
     (2022),
    we relied on Rice and followed the same reasoning to hold
    that the discovery rule applies to ORS 12.140, the catch-
    all statute of limitations providing that “[a]n action for any
    cause not otherwise provided for shall be commenced within
    10 years.”
    The present case requires us to consider the rela-
    tionship between the Vega/Waxman line of cases and the
    Berry/Rice line. Relatedly, we must determine whether our
    decision in Waxman is compatible with Rice or, conversely,
    so irreconcilable with its reasoning as to drive the conclu-
    sion that Rice implicitly overruled Waxman.
    In Waxman, 
    224 Or App at 501
    , the defendant built
    four rowhouses in the mid-1990s and sold one to a couple
    who, in 2001, sold it to the plaintiffs. After various construc-
    tion defects came to light, the plaintiffs brought an action
    against the defendant, including contract claims. 
    Id.
     The
    trial court dismissed the contract claims as barred by the
    six-year statute of limitations in ORS 12.080(1). 
    Id. at 504
    .
    The trial court rejected the plaintiffs’ argument that the
    discovery rule applies to ORS 12.080(1). 
    Id.
     We affirmed on
    appeal. 
    Id. at 512
    . We began from the premise that ORS
    12.080(1) and ORS 12.010 must be read together, such that
    the six-year limitations period begins to run when the cause
    Cite as 
    323 Or App 410
     (2022)                               419
    of action “accrues.” Id. at 511-12. However, we disagreed with
    the plaintiffs that we should look to Berry for the meaning of
    “accrues.” Id. at 511. We instead looked to Vega and the “well
    settled” principle “that a contract claim accrues on breach”
    except in cases of fraudulent concealment. Id. at 512. We
    explained that, in our view, “Berry simply does not stand for
    the proposition that a discovery rule applies to all actions for
    which ORS 12.010 is implicated.” Id. at 511-12.
    The crux of plaintiff’s argument in the present case
    is that Berry actually does stand for the proposition that a
    discovery rule applies to all actions for which ORS 12.010 is
    implicated, and that Rice clarified that point, thus implicitly
    overruling Waxman. In plaintiff’s view, under the reason-
    ing of Rice, any statute of limitations that falls within the
    purview of ORS 12.010, and thus begins to run when the
    cause of action “accrues,” is subject to Berry’s definition of
    “accrues,” i.e., the discovery rule. That would include ORS
    12.080(1).
    Defendant disagrees. Defendant emphasizes that
    Berry and Rice involved tort claims—specifically, Berry
    involved medical malpractice, and Rice involved conver-
    sion and replevin—and argues that, in deciding Rice, the
    Supreme Court did not intend to overrule Waxman, let alone
    the entire Vega/Waxman line of cases.
    Neither party fully engages with the other par-
    ty’s argument. Plaintiff dismisses the holding of Waxman
    as inconsistent with the reasoning of Rice, but he does not
    address Vega (the authority on which Waxman relied), which
    itself involved ORS 12.080(1). See Vega, 
    323 Or at 295-96
    ,
    295 n 2. Meanwhile, defendant does not really address the
    specific reasoning of Rice or chart a path to truly reconcile
    the Vega/Waxman line of cases with Rice.
    Ultimately, however, it is plaintiff’s obligation as the
    appellant to persuade us that the Supreme Court implicitly
    overruled Waxman, and we are not so persuaded. There is
    language in Rice that could be read to support plaintiff’s
    position. For example, at one point, the court states, “We
    conclude, following the reasoning of Berry, that a discovery
    rule applies to ORS 12.080(4) because that statute falls under
    the purview of ORS 12.010.” Rice, 
    354 Or at 728
     (emphasis
    420                                                      Romero v. Amburn
    added). At another point, the court seemingly adopts Berry’s
    definition of “accrues” as the meaning of “accrues” in ORS
    12.010. See 
    id.
     (“[A] cause of action under ORS 12.080(4)
    ‘accrue[s]’ within the meaning of ORS 12.010, ‘at the time
    [a] plaintiff obtained knowledge, or reasonably should have
    obtained knowledge of the tort committed upon her person by
    [a] defendant.’ Berry, 
    245 Or at 316
    .” (First brackets added.)).
    On closer scrutiny, however, we are not persuaded
    that Rice goes as far as plaintiff contends. The fact is that
    Rice did not involve a contract action. There is a long line
    of authority from the Supreme Court and this court that a
    contract action “accrues” at breach, including Vega, which
    specifically involved ORS 12.080(1). No one advocated for a
    discovery rule in Vega or many of the cases in the Vega/
    Waxman line, but the fact remains that those cases say over
    and over that a contract action accrues at breach. Holding
    otherwise would be a major shift in contract law.
    It is also important to recognize that Vega, Waxman,
    and other cases in the Vega/Waxman line specifically use the
    term “accrues.” Under the reasoning of Rice, there is no ques-
    tion that the limitations period in ORS 12.080(1) begins to
    run when the contract action “accrues.” See Rice, 
    354 Or at 728
     (explaining that, because ORS 12.080(4) does not specify
    when the six-year limitation period begins to run, the court
    looks to ORS 12.010, and it follows that the “the six-year lim-
    itation begins to run when the cause of action accrues”). If
    the Vega/Waxman line of cases was premised on ORS 12.010
    not applying or something other than accrual triggering the
    limitations period to begin running, we might be compelled
    to conclude that Rice overruled them. But that is not the
    case. Waxman accepted the premise that ORS 12.080(1) and
    ORS 12.010 must be read together, such that the limitations
    period begins to run when the contract action “accrues,”
    and it relied on Vega as establishing that a contract action
    “accrues” at breach. Waxman, 
    224 Or App at 512
    .
    We are therefore faced with two separate lines of
    case law, each addressing when particular types of actions
    “accrue.” 4 We are not persuaded that those two lines of case
    4
    Neither party mentions Moore. That case involved an action for breach of
    contract, specifically a fire insurance policy. 
    317 Or at 237
    . The applicable statute
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    323 Or App 410
     (2022)                                                 421
    law cannot coexist. That is particularly so in the absence of
    efforts by the parties to put the two lines of case law into
    sufficient historical context to make clear whether they
    are actually in tension or not. There is potential tension.
    We do not foreclose the possibility that the Supreme Court
    may see fit to clarify the law in a way that results in over-
    ruling Waxman. However, we believe that Berry and Rice
    allow room for at least the possibility that contract actions
    “accrue” at the time of breach, as the Vega/Waxman line
    of cases states, even if most other types of actions “accrue”
    when the plaintiff knew or reasonably should have known of
    the wrong, under the reasoning of Rice. As long as there is
    a legitimate possibility of reconciling the two lines of cases,
    we cannot say that one implicitly overruled the other.5
    Accordingly, we reaffirm our holding in Waxman
    that the statute of limitations in ORS 12.080(1) is not sub-
    ject to the discovery rule. It follows that plaintiffs’ contract
    claims are time-barred under ORS 12.080(1). The trial court
    did not err in granting summary judgment for defendant.
    Affirmed.
    of limitations required the action to be “ ‘commenced within twelve months next
    after inception of the loss.’ ” 
    Id. at 238
     (quoting ORS 742.240 (1991)). The primary
    issue on review was whether the defendant had waived the statute of limitations;
    the Supreme Court concluded that there was no evidence of waiver. 
    Id. at 240, 243-44
    . The court then considered the plaintiff’s alternative argument, based on
    Berry, that the discovery rule applied. 
    Id. at 244
    . In rejecting that argument, the
    court distinguished Berry and other negligence cases on the basis that they “fell
    within the purview of ORS 12.010” and that the use of the term “accrued” in ORS
    12.010 “provided a basis for recognizing a discovery rule,” whereas the limita-
    tions period in ORS 742.240 was triggered by the “inception of loss,” which “does
    not provide an equivalent basis for recognizing a discovery rule.” 
    Id. at 247-48
    .
    The court went on to explain that the legislative history showed that a discovery
    rule was not intended with respect to ORS 742.240 and that, in any event, “the
    phrase in question is not amenable to a discovery rule as a matter of English.”
    
    Id. at 250
    . Moore gives us some pause, given its reasoning, so we acknowledge
    it. However, Vega specifically addressed when a contract action “accrued” for
    purposes of the statute of limitations in ORS 12.080(1), and the Supreme Court
    decided Vega three years after Moore. On the whole, Moore does not persuade us
    to read Vega more narrowly than we did in Waxman.
    5
    We note that, if Waxman stood alone, we would have authority to reconsider
    it, even if Rice did not strictly overrule it, because Waxman is a decision of this
    court. We do not have that type of authority with respect to Supreme Court cases
    such as Vega, which are binding on us. The practical effect of the distinction is
    that an appellant must persuade us that there is no possible way to reconcile two
    Supreme Court cases before we will say that one implicitly overruled the other.
    

Document Info

Docket Number: A175063

Citation Numbers: 323 Or. App. 410

Judges: Aoyagi

Filed Date: 12/29/2022

Precedential Status: Precedential

Modified Date: 10/10/2024