No. 89-C-1645.

557 So.2d 1376 (1990)

BUNGE CORPORATION and Northbrook Excess & Surplus Insurance Company, Insurance Company of North America, American Home Assurance Company, Atlanta International Insurance Company, Bellefonte Reinsurance Company, California Union Insurance Company, Hanover Insurance Company, International Insurance Company, Lexington Insurance Company, British National Insurance Company, Ltd., Subrogees of Bunge Corporation v. GATX CORPORATION, GATX Tank Erection Corporation, GATX Terminals Corporation, GATX Leasing Corporation, GATX Marine Corporation, GATX Second Marine Corporation, GATX Third Marine Corporation, Varlen Corporation, Sapulpa Corporation, Sapulpa Tank Company, John Doe 1 Corporation, John Doe 2 Corporation, John Doe 3 Corporation, and John Doe 4 Corporation.

Supreme Court of Louisiana.

Rehearing Denied April 26, 1990.

Attorney(s) appearing for the Case

C.G. Norwood, Jr., Michael M. Noonan, Margaret Diamond, William Bologna, McGlinchey, Stafford, Mintz, Cellini & Lane, H. Bruce Shreves, Jay H. Kern, Warren W. Wingerter, Simon, Peragine, Smith & Redfearn, New Orleans, George F. Curran, for applicant.

John J. Weigel, Madeleine Fischer, Jones, Walker, Waechter, Poitevent Carrere & Denegre, New Orleans, Steve Griffith, for respondents.

DIXON, Chief Justice.

The issue before us is whether the ten year peremptive period for actions arising out of construction defects as set out in R.S. 9:2772 applies where a contractor acquires knowledge of a hazardous condition in his construction and yet fails to warn the owner.

In 1966, predecessor corporations of defendant GATX contracted to build a grain storage tank at plaintiff Bunge's Destrehan plant. The tank, two hundred feet in diameter and fifty...


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