(January 2013) – On September 28, 2012, Senate Bill 224 became law, shortening the period of limitations for actions on a contract in writing. The previous statute of limitations was 15 years, but Senate Bill 224 reduced it to 8 years. The new statute of limitations affects contracts in writing (other than promissory notes which have a 6 year statute of limitations and contracts for sale of goods which have a 4 year statute of limitations) and runs from the date of breach; not the date of the contract.
If the breach of contract occurred prior to September 28, 2012 the statute of limitations is 8 years from September 28, 2012 or the remaining period of limitations in effect prior to the enactment of this statute, whichever occurs first. If the breach occurs after September 28, 2012 then the 8 years statute of limitations applies.
If you have questions about the change in this law or any other issues regarding litigation, breaches of contract, or statute of limitations please feel free to contact Attorney Robert B. Preston, III at [email protected] or any of Black McCuskey’s attorneys in our litigation or commercial practice area groups