Legal Question in Credit and Debt Law in California
stachute of limitations
An attorney who forgave a debt approximately 4 yrs ago just called and wants
his money. He forgave it because he knew I got screwed in my divorce case
and had no money. He has done nothing in that 4 yrs to try and collect. Can
he legally come after me?
I would really appreciate an answer,
Thank you,
Rick Keene
2 Answers from Attorneys
Re: stachute of limitations
Any lawsuit by the attorney may be barred by the statute of limitations. We would need to review your retainer agreement, last statement, and payment schedule showing any payments made to assist you. Please contact us if you need any further assistance or to defend you in the action.
Re: stachute of limitations
The statute of limitation for breach of a written contract in California is genrally 4 years. The 4 years can be measured by the last payment you made on the contract. In all likelihood, you signed a retainer agreement (a contract) at the time you hired the lawyer, which means if it has been less than 4 years (even by 1 day) from the last payment you made to the lawyer, the lawyer can technically sue you to recover what you owe.
In California, before suing a client, an attorney must give the client the opportunity to arbitrate the dispute through the state or a local bar association Mandatory Fee Arbitration Program. The attorney must serve you with a notice of your rights under the Bar's Mandatory Fee Arbitration Program prior to filing suit, and give you the opportunity to agree to arbitration (which may be non-binding or binding).
If you have any proof that the attorney "forgave" the amount you owed him or her (i.e., a letter stating that he or she is forgiving the debt), that is a defense you can raise in either the fee arbitration (if you choose to accept arbitration) or any lawsuit that may be filed against you.