Steve Harms

Tuesday, June 14, 2011

Statute of Limitations on the Sale of Goods: It's four years even if a payment is made

A Michigan Court of Appeals just ruled this month that the FOUR year statute of limitations built in to the Uniform Commercial Code (UCC) applies to all actions for open account sales of goods.

In the case, a payment was made on the account in May of 2005 and the suit was filed in August 2009 (four years and three months).  The creditor argued that the payment started a whole new statute running, for SIX years (the traditional contract statute of limitations) rather than just four years.

The Court disagreed with the creditor.  While the payment does start the running of the statute of limitations all over again, it runs for FOUR years, not six years.

BOTTOM LINE:  in any transaction having to do with goods (as opposed to services like any professional services..accounting, legal, medical, or any other services), make sure your suit is FILED within FOUR years if your state, like Michigan has the typical UCC four year statute of limitations for the sale of goods!  (The case is Fisher Sand and Gravel v Neal A Sweebe, an 8 page opinion available through Michigan Lawyers Weekly, 07-75990)

More Michigan Collection Law in extensive detail (700 page book), Handling the Collection Case in Michigan


Anonymous said...

Its an important information that you share with us.In sales of goods we have to follow legal four year contract statute of limitation rather than traditional six year contract.

digital signature software said...

Thanks sir,your blog provide us important legal advise at no cost.Now i understand that four year contract statute of limitation is right legal act.