Galbraith Engineering Consultants v. Pochucha

In Galbraith Engineering Consultants v. Pochucha, 290 S.W.3d 863 (Tex. 2009), the supreme court concluded that the Texas Legislature did not intend for former Texas Civil Practice and Remedies Code section 33.004(e), which concerns the effect of the timely joinder of designated responsible third parties on statutes of limitations, "to revive a claim otherwise barred by a statute of repose, as distinguished from a statute of limitations." Id. at 864. Although the court recognized that the legislature has grouped statutes of repose and limitations together in chapter 16 of the Civil Practice and Remedies Code, it noted that "there are significant differences between the two." Id. at 866. After noting that "statutes of repose are created by the Legislature, and the Legislature may, of course, amend them or make exceptions to them," the court framed the issue before it as "whether the Legislature intended to make such an exception when it enacted section 33.004(e) as part of its proportionate responsibility scheme, that is, did the Legislature intend for the revival statute to operate as a general exception to periods of repose." Id. at 867. The court's conclusion in Galbraith, limited to the effect of section 33.004(e) on statutes of repose, does not mean that section 16.064, which is expressly entitled, "Effect of Lack of Jurisdiction," does not apply to "statutes of repose." See id. at 867 & n.4 (acknowledging that legislature has used term "limitations" in "both contexts" of limitations and repose; explaining that "statutes of repose in chapter 16 of the Civil Practice and Remedies Code refer to limitations rather than a period of repose"). Indeed, a closer reading of Galbraith and an understanding of the fundamental purpose of section 16.064 and how it is different from section 33.004(e), which the supreme court recognized as a "revival statute," compels the opposite conclusion. Id. at 869. The supreme court in Galbraith noted that the legislature can "provide for the extension of a period of repose." Id. at 866. The court reasoned, however, that section 33.004(e), which allows a claimant sixty days to file a claim against a person after that person is "designated as a responsible third party," does more than "merely extend" the time to file the claim for a period of two months. Id. "It effectively renders the period of repose indefinite by attaching the claim's revival to the existence of some other claim and party that may not be subject to the same or similar period of repose." Id. The court noted that the original defendant, Bill Cox, and the subsequently designated responsible third party, Galbraith, worked on the same improvement to real property and were subject to similar ten-year statutes of repose. Id. "Hence, the court of appeals viewed section 33.004(e) as extending the period only by sixty days." Id. However, as further noted by the supreme court, "in other cases a responsible third party may be subject to a longer period of repose or none at all, creating an opportunity for revival many months or years beyond the ten-year period of repose prescribed by section 16.008." Id. at 867. The supreme court concluded that the legislature could not have intended the term "limitations" as used in section 33.004(e) to apply more broadly to include statutes of "repose." Id. at 868-69. It reasoned that so broadly construing the term "limitations" as used in section 33.004(e) would defeat the recognized purpose for statutes of repose, that is, the establishment of a definite end to the potential for liability, unaffected by rules of discovery or accrual. Id. at 868. The court found nothing in section 33.004 or the proportionate responsibility scheme to convince it that the legislature intended to revive claims extinguished by a statute of repose, and, "because application of the revival statute in this instance effectively renders the period of repose indefinite, a consequence clearly incompatible with the purpose for such statutes," it concluded that the legislature "intended for the term 'limitations' in section 33.004(e) to refer only to statutes of limitations." Id. at 869.