Statutory (2 Years from Discovery of Problems)

In February of 1994 the Alabama Legislature adopted a new statute related to civil actions against builders, architects or engineers. Ala. Code § 6-5-221 (1975). That statute stated that claims must be brought within two years from when the cause of action accrued. Ala. Code § 6-5-221 (1975). Under the statute, a cause of action is deemed to accrue, or arise, where the damage is latent “at the time the damage or injury is or in the exercise of reasonable diligence should have been first discovered, whichever is earlier.” Id. at § 6-5-220(e). Therefore, the cause of action commences at “the time of discovery — thereby applying for the first time to both these tort and contractual actions, the so-called ‘discovery rule.’” Id. at § 6-5-225. Additionally, the statute was revised in 2011 to bar any action filed more than 7 years after the cause of action accrues.

Regarding builders, the statute only applies to those who, at the time of construction, were licensed as a general contractor in the State of Alabama. Id. at § 6-5-220 (a). Additionally, the statute only applies to construction done pursuant to architectural or engineering plans. Id. at § 6-5-221 (a).