Commonwealth Land Title Insurance Co. v. KCI Technologies, Inc., No. 18-7051 (D.C. Cir. 2019)Annotate this Case
Commonwealth filed suit against two land surveyors, KCI and WMC, alleging breach of contract and negligence claims in connection with four allegedly defective surveys that the two entities delivered to ICG, a non-party to this litigation. Commonwealth alleged that KCI's and WMC's surveys failed to notice the full size of a twelve-inch encroachment, which ICG discovered on its property. The district court dismissed the complaint based on the three year statute of limitations.
The DC Circuit reversed as to the first three counts of the complaint because the district court erred in dismissing them on statute of limitations grounds without applying the discovery rule. In this case, at the motion to dismiss stage, the court could not conclusively say that Commonwealth and ICG failed to exercise reasonable diligence in attempting to discover the encroachment's full size. Furthermore, it was premature to reject the possibility that Commonwealth's claims in counts one, two, and three did not accrue, at the earliest, until ICG discovered that the encroachment was twelve inches.