Legal Question in Business Law in New York

Re: Statute of limitations: until when can one sue?

4 years in California from the time of breach. So once you violate the contract, they have 4 years afte discovery of your violation to sue. Clear? Your question needs some facts.

Re: Statute of limitations: until when can one sue?

The statute of limitations for a contract in New York is six years from the date of the breach unless the breach of the contract is based on the negligence other party, in which case the statute of limitations is three years. Whether or not you could stop performing your obligations under the contract could only be determined after reviewing its terms. In some instances, you could "declare a breach" by the other side and begin to "mitigate" your damages which may include not performing your obligations. Also, whether or not the New York statute of limitations will apply rather than the California statute of limitations depends upon the circumstances unless the contract specifically states that New York law shall apply to any disputes between the parties regarding the contract. If you need further assistance, our office handles significant contract disputes where the potential value of the case is greater than $75,000 and we offer consultation services where the potential value of the case is less than that amount. You can call us to arrange for a review of your contract and telephone consultation at (212) 267-7000. The fee for this service will be $350. Please also see our web site at venezialaw.com.

Re: Statute of limitations: until when can one sue?

As a California lawyer I can't give you information specific to New York. However, the following comments are kind of general and would apply in most states:

1. There will be a statute of limitations set by statute (as the name implies) for bringing suit on a contract.

2. Any attempt by the parties to anticipate suit and specify their own "statute" might be given some weight by a judge, but is likely to be ineffective since the limitations period is a reflection of legislative policy which private contracts should not be allowed to override.

3. The limitations period generally will start to run from the time of the breach, NOT from the time the contract is formed.

4. The limitations period is likely to be longer for a written contract than for a purely oral contract, and #3 above may not apply to an oral contract.

5. Determining when the breach occurs and hence when the clock begins to run on limitations can be technical and even experienced lawyers may not agree with each other, or with the judge, on this.

6. Your performance under a contract may be excused by the other party's prior material breach or the other party's anticipated breach. You may also "get away with" not performing due to the defense to suit provided you by an applicable statute of limitations. Legally the effect is the same, but I think there may be a moral and ethical difference.

7. Remember that the limitations period doesn't begin to run until there has been a breach by the prospective defendant.

8. Statutes of limitations are tricky and technical. Get local (New York) advice on your specific fact set.