Legal Question in Business Law in California

Breach of Contract

From the time the contract is breached how much time do I have to file a law suit to collect damages?


Asked on 9/30/08, 2:30 pm

3 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Breach of Contract

Written contract, 4 years, oral contract 2, do not wait, if the contract has an attorney fee provision or the amount is over $7500 use an attorney.

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Answered on 9/30/08, 2:42 pm
Terry A. Nelson Nelson & Lawless

Re: Breach of Contract

2 years if oral, 4 years if written. Feel free to contact me if you are serious about getting legal help, if the case is worth enough to justify filing in Superior Court. Small claims goes up to $7500.

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Answered on 10/06/08, 3:57 pm
Cathy Cowin Law Offices of Cathy Cowin

Re: Breach of Contract

Michael already provided the short answer, but for this forum, a little more information: There is a statute of limitation (last day by which you can file a lawsuit) for various claims. The statute is different if you are claiming say negligence versus breach of contract. Sometimes there will be additional claims available for your case based on your set of facts that are different than the primary one that you're thinking of as a lay person. For breach of contract, the statute of limitations is 2 years for an oral agreement and 4 years for an agreement in writing. The best advice, especially depending on how much money is on the line, is to take the information to your attorney sooner rather than later. Procrastination is generally not your friend! First of all, there may be other claims that will be precluded because you waited for that 4-year contract statute. Second, sometimes the less expensive and better strategy is negotiation with an attorney's assistance, and that statute could force you into a lawsuit when it would have been better to continue to negotiate. Third, attorneys get downright cranky when you bring them a lawsuit right before the statute! Fourth, witnesses move and documents get lost and such as time passes and your case becomes more difficult to prove. Last, sometimes it is even productive to sue when there is just a threat of a breach (this is called "anticipatory repudiation") if this mitigates your damages. So, the best advice is to take the problem to an attorney early and not late. I can't tell you how many times clients have said "if only" because they were trying to avoid that nasty lawyer bill and coming into the office sooner would have actually saved them not only a lot of money, but a lot of stress! A basic consultation is low cost (or sometimes a free lunch) and can help you formulate the best strategy for your particular circumstances.

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Answered on 10/01/08, 11:51 am


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