Facts

A bank had several rental buildings constructed in 1983/84 in Baden-Dättwil. The company R. AG was commissioned to plaster the facades by a subcontractor, Niklaus M. Subsequently, cracks appeared on the facades. R. AG then brought an action against M. to compel him to repair the plastering. The district court dismissed the claim, but the cantonal court overturned this judgment and remanded the case for a new decision. M. appealed against this decision to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed M.'s appeal. It considered that the time limit for notifying defects had only started to run on September 3, 1986, the date on which R. AG had discovered the significant cracks and had immediately reported them. Although shrinkage cracks had been observed as early as April 30, 1986, R. AG could legitimately consider them as normal phenomena not constituting a breach of contract.

Regarding the statute of limitations, the Federal Supreme Court ruled that the five-year limitation…