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Case Law Alerts

Pennsylvania Supreme Court to Decide Whether Key Exceptions Could Erode the 12-Year Construction Statute of Repose

Aloia v. Diament Bldg. Corp., 329 A.3d 586 (Pa. 2024) and Clearfield County v. Transystems Corp., 338 A.3d 110 (Pa. 2025)

January 1, 2026

The Pennsylvania Supreme Court has accepted review in two matters that could materially affect the scope and predictability of Pennsylvania’s 12-year construction statute of repose, potentially expanding exposure for design professionals, contractors and others involved in improvements to real property.

In Aloia, the court is poised to address whether the statute’s protection for those “lawfully performing or furnishing” construction-related services turns on general legal authorization to perform the work (e.g., permits/approvals) or whether alleged building code violations can remove a project from the statute’s protection and permit otherwise time-barred claims to proceed.

In Clearfield County, the court is expected to consider whether the common law doctrine of nullum tempus (“time does not run against the king”) allows counties or other political subdivisions to pursue claims notwithstanding the construction statute of repose, a ruling that could create a public-entity exception to repose protections.

Together, these cases are significant because they test the durability of the statute of repose as a firm, predictable cutoff for construction-related liability. Depending on how the court rules, long-settled expectations regarding finality and risk allocation may be altered, potentially expanding exposure for design professionals and contractors—particularly where code compliance is challenged, or public entities assert claims long after project completion.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.