Tri-State Insurance Company of Minnesota A/S/O Campus Chalet, Inc. v. East Tennessee Sprinkler Company, Inc.

This appeal stems from a dispute over a purportedly defective sprinkler system which malfunctioned, causing significant damage to Campus Chalet, Inc. (“Campus Chalet”). East Tennessee Sprinkler Company, Inc. (“ETS”) installed the system in 1992 and remained contractually responsible for subsequent inspections, testing, and maintenance of the system. On October 5, 2023, Campus Chalet’s insurance carrier filed a complaint in the Circuit Court for Washington County (the “trial court”), against ETS, alleging that the sprinkler system malfunctioned and caused significant damage to Campus Chalet. ETS filed a motion to dismiss, arguing that the complaint was time-barred by a statute of repose. The trial court granted ETS’s motion, and this appeal followed. Because we agree with the appellant that the negligence and breach of contract claims are based on ongoing failures to inspect, test, and maintain the system, we reverse.