In the case of State ex rel. New Riegel Local School Dist. Bd. of Edn. v. Ohio School Facilities Comm., 2017-Ohio-875, an Ohio appellate court found the Ohio School Facilities Commission (“Commission”) did not owe a legal duty to reopen a construction project in order to assist a school district with funding to repair project defects after the Commission issued a certificate of completion.
The project involved the construction of a K-12 building. The Commission issued a certificate of completion sometime in 2002 or 2004. More than a decade later, the school district requested that the Commission re-open the school building project and provide funding to repair the roof and through-wall flashing systems. The Commission refused, and the school district filed suit.
The Ohio appellate court found that Commission’s ownership of, and interest in, the project ceased when it issued the certificate of completion terminating its involvement in the project. According to the Ohio appellate court, there is no statutory language that establishes a duty for the Commission to create and fund a project construction fund after the issuance of a certificate of completion.
So what is a school district down in the dumps about a defective construction project to do? The Ohio appellate court noted two potential avenues of redress for such school districts. First, oppose the issuance of the certificate as “’improperly’ or ‘prematurely’ issued.” New Riegel at ¶ 29. Second, initiate the legislatively created “corrective action program” under R.C. 3318.49, which provides “‘funding for the correction of work.’” New Riegel at ¶ 31, quoting R.C. 3318.49(A). While not suggested by the appellate court, presumably the school district should also investigate a potential action against the contractor.
To read this case, please click here.
Authors: Matthew John Markling and Patrick Vrobel.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.