Legal Question in Civil Litigation in Texas
The Letter
My mom is owed $18,000.00 by her son and wishes to collect on it. In 1999 he wrote her a letter stating he will pay her that sum in full but has not as of yet. Is this a binding contract between him and her in the matter of paying her back? And if she could get an attorney, will she win the case as she has no money to fight this and is willing to settle in small claims court for $5,000.00? In the past 3 years he has received over $200,000.00 and ingonres his obligations to his mother concerning the debt and the I.O.U. he signed and dated.
1 Answer from Attorneys
Re: The Letter
The general statute of limitations in Texas for an obligation such as this is four years from the due date. If the 1999 memo does not express a due date, the four-year period is likely to commence running at that time. If the obligation had been a promissory note, there would have been a longer period of time as is provided by Article Three of the Texas Business Code. First see if he will sign another memo like the 1999 memo. If she can get that signed, the four years will start anew.
As to attorneys' fees, she might get an attorney to bring the suit in her behalf in exchange for a contingent fee, and in hope that the brother will not raise the limitations defense.
Another considerations are to modify her will to make certain that the debt, plus interest from 1999 will be offset against his inheritance, or for that matter, she of course, set it at - 0 -.