Waterfront Pearl Condo. Owners v. Waterfront Pearl

An “injury” is discovered when a plaintiff knows or should have known of the existence of three elements: (1) harm; (2) causation; and (3) tortious conduct. The statute of limitations starts running when the plaintiff knows or should have known facts that would make a reasonable person aware of a substantial possibility that each of the elements exists. The plaintiff must be aware of the conduct and the “tortious nature” of the conduct.

Plaintiff, a non-profit corporation, appealed the lower court’s grant of summary judgment in favor of Defendants, WCM Industries, Inc. dba Watco Manufacturing Company. Plaintiff assigned error to the court’s dismissal of Plaintiff’s complain on the ground that the “claims were time-barred.” Plaintiff also argued that the lower court mishandled the discovery rule, by stating that Plaintiff “discovered its injury before December 18, 2015.” An “injury” is discovered when a plaintiff knows or should have known of the existence of three elements: (1) harm; (2) causation; and (3) tortious conduct. The statute of limitations starts running when the plaintiff knows or should have known facts that would make a reasonable person aware of a substantial possibility that each of the elements exists. The plaintiff must be aware of the conduct and the “tortious nature” of the conduct. Here, Plaintiff discovered a leak, but it was unclear where the leak was coming from. Because many different actors could have been liable, Plaintiff had no reason to know the nature of the tortious conduct, or the actors involved, summary judgment was inappropriate. Reversed and remanded.