Division 2: Jury to Decide Whether Owner Waived Contract's Suit Limitation Period
In this latest installation in the Mike Johnson saga, Division 2 held this week that the City of Olympia must go to trial on a contractor's $768,000 impact claim arising out of a sewer line project.
The case was before Division 2 on the contractor's appeal from a grant of summary judgment in favor of the City. The contract was governed by the WSDOT Standard Specifications, which in Section 1-09.11(3) provide that any suit must be filed within 180 days of final acceptance. Because the suit was not brought within that time, the City moved for summary judgment and prevailed.
On appeal, Division 2 concluded that a triable issue of fact existed on whether the City had waived enforcement of the 180 day suit limitation when it engaged in claim negotiations with the contractor after expiration of the applicable suit period. The Court distinguished Mike Johnson as a case where the owner (who also engaged in claim negotiations) had "continuously asserted" that it did not intend any waiver of defense during the negotiations.
The case was before Division 2 on the contractor's appeal from a grant of summary judgment in favor of the City. The contract was governed by the WSDOT Standard Specifications, which in Section 1-09.11(3) provide that any suit must be filed within 180 days of final acceptance. Because the suit was not brought within that time, the City moved for summary judgment and prevailed.
On appeal, Division 2 concluded that a triable issue of fact existed on whether the City had waived enforcement of the 180 day suit limitation when it engaged in claim negotiations with the contractor after expiration of the applicable suit period. The Court distinguished Mike Johnson as a case where the owner (who also engaged in claim negotiations) had "continuously asserted" that it did not intend any waiver of defense during the negotiations.
