Fay A. Galbraith v. Vangas

This case involves the issue of applicable statutes of limitation, where property damage occurs as a result of the explosion of a propane water heater in a residence. We are asked to determine, first, whether the action properly lies in contract, rather than tort, triggering the applicability of the statutes of limitation relating to contracts. Second, if the action properly lies in tort, then did the cause of action accrue when the water heater was installed, or did it accrue upon the subsequent explosion, when the property damage occurred? The water heater was installed at Galbraith's residence, by a predecessor entity of Vangas, in 1961. In 1979, it exploded, destroying Galbraith's house, and damaging or destroying her personal property inside the house. She sued Vangas, claiming that its negligent installation of the water heater caused the damages to her property. The district court granted summary judgment to Vangas, concluding that the action was barred because it was not commenced within three years pursuant to the statute of limitation governing tort actions for property damage.[Footnote 1] Galbraith appeals the order granting summary judgment to Vangas. We reverse, and remand the cause for further proceedings.