Contract Glossary
Statute of Repose
Definition
A hard deadline, measured from a specific event like project completion or product delivery, after which no legal claim can be brought, regardless of when the injury or defect was discovered. Unlike a statute of limitations (which starts when you discover the harm), a statute of repose starts when the triggering event occurs, even if the harm hasn't happened yet.
In Practice
An architect designs a commercial building that is completed in 2020. In 2032, a structural defect causes part of the building to collapse. The building owner wants to sue the architect, but the state has a 10-year statute of repose for construction defects. Even though the owner just discovered the defect, the claim is barred, the 10-year window from completion has closed. This is why architects and contractors carry tail coverage on their professional liability insurance.
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