Legal Question in Civil Litigation in California
how long are the statutes of limitations on suing for a personal check that was returned for insufficient funds?
2 Answers from Attorneys
I am not positive but it should be 2 years as a breach of an oral contract, unless you can convince a judge that the check is the contract so it is a written contract and you would have 4 years.
Mr. Shers answer assumes that the underlying obligation was oral. This means that if the check was given to you to satisfy an oral contract, or a contract implied in law, and you filed an action for breach of contract, the statute of limitations would be the two (2) year period set forth by Code of Civil Procedure section 339. If, however, the underlying obligation was based on a written contract, the statute of limitations would be the four (4) year period set forth by Code of Civil Procedure section 337.
California contains a special statute that governs checks that are returned for insufficient funds. Generally, anyone who passes a check that is dishonored is liable to the payee for the amount of the check and a service charge of no more than $25.00 for the first check returned, and $25 for each subsequent check. (Civ. Code, sec. 1719 subd. (a).) There is a special provision that provisdes for even more damages (treble damages) if a written demand for payment is sent via certified mail and not paid within 30 days. (Civ. Code, sec. 1719 subd. (b).)
This is what is known as a statutory cause of action with a statutory penalty. California has a special statute of limitation that provides for three (3) year limitation period for an action for a liability created by statute, other than a penalty or a forfeiture. (Code of Civ. Proc, sec. 338.)
I wouldn't wait too long. Courts aren't like vending machines, and you won't get the same result everytime. You are best to be on the safe side, and follow the guidelines of Civil Code section 1719, give notice, and file a lawsuit if the demand is not timely paid.