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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.

Frequently asked questions about statute of repose

When the clock starts. A statute of limitations begins when you discover (or should have discovered) the injury — the 'discovery rule.' A statute of repose begins at a fixed event (completion of construction, sale of a product, delivery of services) regardless of when the injury occurs or is discovered. A statute of repose is an absolute bar; a statute of limitations can be extended by late discovery. Both can apply to the same claim — you must meet whichever deadline comes first.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.