Legal Question in Business Law in California

Re: Arbitration agreement

Arbitration is merely a means to resolve a dispute. The statute of limitations on a claim is the same whether the claim is made through court or arbitration. For example, the statute of limitations for enforcement of a written contract is generally four years from the date of breach. (There are several exceptions - this is a simple example.) Whether the contract contains an arbitration provision is not relevant for purposes of calculating the limitations period - it's still four years. Unless your contract includes a limitation of remedies or similar provision that would restrict (or enlarge) the limitations period, the statute of limitations for breach of contract will be four years.

This, of course, presumes that the claim being made against you is one that arises out of the contract and is in fact one that is encompassed by the arbitration provision. It also presumes that the arbitration provision is broad enough to encompass the claim made. There is an entire body of law surrounding this area, and I would need to review the actual contract (and claim) to provide a definitive answer.

Good luck.

Re: Arbitration agreement

It is written contract and, thus, 4 years:

CCP 337. Within four years: 1. An action upon any contract, obligation

or liability founded upon an instrument in writing, except as

provided in Section 336a of this code; provided,

Re: Arbitration agreement

In an arbitration, the statute of limitations can be raised as an affirmative defense to the same extent it could be raised in a lawsuit in court. Since the limitations period for litigation based on a written contract is four years from the date of breach, the fomer client's arbitration demand cannot be repulsed on the ground that it is stale. It is now timely and will be for a few more years.

It is possible that the arbitration clause is defective or that the matter to be arbitrated is outside the scope of the agreement to arbitrate. If so, after a skirmish over the clause's validity, the same dispute would no doubt end up before a judge in court. So, one way or another, you'd better get ready to defend the claim on the inherent merits of your defense.