66 N.Y.2d 948 (1985)
A cause of action against a contractor for defects in construction accrues upon completion of the actual physical work, and subsequent incidental repairs do not extend the accrual date for statute of limitations purposes.
Summary
Cabrini Medical Center sued Humphreys & Harding for breach of contract due to alleged construction defects, nearly a decade after final payment and occupancy of the building. The New York Court of Appeals held that the claim was time-barred by the six-year statute of limitations because the cause of action accrued upon completion of the actual physical work, signaled by final payment, issuance of a certificate of occupancy, and full occupancy, not by subsequent incidental repair work. The court reversed the Appellate Division’s order compelling arbitration and directed a permanent stay of arbitration.
Facts
In July 1971, Cabrini Medical Center (plaintiff) hired Humphreys & Harding (defendants) as contractor and construction manager for a 16-story addition. The contract stipulated final payment was due 20 days after substantial completion, provided the work was completed, the contract fully performed, and the architect issued a final certificate. The architect certified substantial completion on December 20, 1973, and final payment was made. By November 22, 1974, a permanent certificate of occupancy was issued, and Cabrini fully occupied the building. Funds retained for punch-list items were released on January 28, 1975. In March 1977 and October 1981, masonry repair work was performed.
Procedural History
On May 25, 1983, Cabrini sued Humphreys & Harding for breach of contract, alleging fraud and negligence in construction. Special Term denied the defendant’s motion to stay arbitration and dismiss the complaint, compelling arbitration instead. The Appellate Division affirmed. The Court of Appeals reversed, holding the claim was time-barred and directing a permanent stay of arbitration.
Issue(s)
Whether the statute of limitations for a construction defect claim begins to run from the date of substantial completion of the project or from the date of subsequent repair work.
Holding
No, because a cause of action against a contractor for defects in construction generally accrues upon completion of the actual physical work, and subsequent incidental repairs do not extend the accrual date.
Court’s Reasoning
The Court of Appeals reasoned that Cabrini’s claim accrued prior to May 25, 1977, making the 1983 lawsuit time-barred. The court emphasized that completion of work was signaled when Cabrini instructed its architect to release all payable funds. "By itself instructing its architect to release all funds payable to defendants, plaintiff here signaled the completion of work under the terms of the contract." The issuance of a final certificate of payment and Cabrini’s complete occupancy of the building further indicated completion before May 25, 1977. The court deemed the 1981 repair work (installation of eight square feet of concrete block) "at most incidental" and insufficient to extend the accrual date. "The repair work performed by defendants’ masonry subcontractor in October 1981 — installation of some eight square feet of back-up concrete block — was at most incidental to construction of the building and cannot serve to extend the accrual date of plaintiff’s cause of action." The court also rejected Cabrini’s arguments that fraud or negligence extended the statute of limitations, finding such allegations incidental to the breach of contract claim. The continuous treatment doctrine and equitable estoppel were deemed inapplicable due to the absence of a continuous professional relationship or a fiduciary relationship, respectively. The court distinguished between the completion of the project and later, minor repairs. To hold otherwise would create uncertainty for contractors and potentially extend liability indefinitely based on minor subsequent work.