Temporary Ventilation System Constitutes “Improvement to Real Property” and Four-Year Limitations Period Applied to Action
In Fireman’s Fund Insurance Company v. First Rockford Group, First Rockford Group (“First Rockford”) was engaged in the business of constructing commercial properties. Fireman’s Fund Insurance Company (“Fireman’s Fund”) insured First Rockford for property damage to a building that was under construction in Rockford, Illinois. First Rockford installed permanent flooring. First Rockford hired Rockford Heating to install a ventilation system for the temporary furnaces. On February 1, a fire occurred in the building, originating in one of the furnaces, and caused damage to the building’s walls and ceilings. Under the terms of the insurance contract, Fireman’s Fund paid a total of $67,208.97 in damages to First Rockford.
Fireman’s Fund, as subrogee of First Rockford, filed a complaint in the Circuit Court of Winnebago County, alleging that Rockford Heating was negligent by failing to exercise a reasonable degree of care and caution in the construction and installation of the ventilation system for the two temporary furnaces. The complaint alleged that Rockford Heating’s negligence caused the fire.
The court reviewed whether Section 13-214(a) of the Code (735 ILCS 5/13-214(a) (West 2010)) applies and bars the complaint by the four-year limitation period.
Under Illinois law, a statute’s language is ambiguous when it is capable of being understood in two or more different senses by reasonably well-informed persons. In this case, the parties offer conflicting interpretations of the term “improvement to real property” in Section 13-214(a). Where the language of a statute is ambiguous, it is appropriate to consider other sources to ascertain the legislature’s intent. As the legislative debates indicate, the statute was intended to relate to anyone involved “in the planning, supervision, or the construction of the improvement to real property.” This gives parties who are engaged in construction activities an idea of the time frame during which they could be held liable for injuries resulting from negligence in performing those activities. To hold that the ventilation system was not part of the improvement would achieve the inconsistent result that First Rockford, which supervised the construction, installed the temporary furnaces in order to continue the construction, and ordered the installation of a ventilation system for the furnaces, would be shielded by Section 13-214(a); while Rockford Heating, which acted at the direction and under the control of First Rockford, would not be protected. Therefore, the court found that the ventilation system, although a temporary installation, was an essential step in the installation of an improvement to the property and that, under the language in Section 13-214(a), Rockford Heating’s activities fall under its purview.
Fireman’s Fund Ins. Co. v. Rockford Heating & Air Conditioning, Inc., 2014 IL App (2d) 130566.
