A limitations period is too short when it’s unreasonably short.
Recently, the U.S. Court of Appeals for the Fourth Circuit affirmed the Maryland District Court upholding a one-year contractual limitations period for arbitration. Along with a separate contractual waiver any trial in a traditional court setting, the plaintiff was SOL when he didn’t demand arbitration within one year.
The Court reaffirmed its prior holding from a separate 2007 case that, generally, “limitations periods may be shortened by agreement, so long as the limitations period is not unreasonably short.” Absent the agreement, the plaintiff had three years to file a lawsuit for breach of contract.
See also: When typical limitations don’t apply.
Read, re-read, review, and thoroughly understand your contracts. It’s often better to reasonably act and be rejected than not act or be too late.
Bracey v. Lancaster Foods LLC, No. 19-1292 (4th Cir. Dec. 16, 2020)
Roads & Bridges | Contract Termination
CONTRACT TERMINATION | An unpredictable case teaches hard lessons to each party involved
Court decisions are “opinions.” There are majority and dissenting (disagreeing) […]
Roads & Bridges | Good Faith and Fair Dealing
GOOD FAITH AND FAIR DEALING | How Do You Prove a Party Has Failed to Act Based Upon an Ulterior Motive?
The duty […]
Roads & Bridges | Not Another Notice Story
NOT ANOTHER NOTICE STORY| This Defensive Argument Seems to be on the Rise
AS I CONSIDERED the subject matter for this column, I […]
Roads & Bridges | All According to Plan
ALL ACCORDING TO PLAN | Exact Measurements Go a Long Way
In December 2013, a contractor agreed to replace four bridges for the […]
Roads & Bridges | Connecting the Dots
CONNECTING THE DOTS | Showing Causation in Contracting Cases is Critical
In this asphalt case, the prime contractor agreed to perform a $13 […]
Roads & Bridges | Liquidated Damages
LIQUIDATED DAMAGES | Penalties and What is Unenforceable
Liquidated damages typically flow from delays, but they are not always solidly enforced.
In June 2017, […]
Roads& Bridges | Warranty Provisions
WARRANTY PROVISIONS | Contracts must be interpreted thoroughly to avoid absurd results
You are responsible for things within your control. Be careful if […]
Roads& Bridges | The Agreed Price
THE AGREED PRICE | This case stands as a warning about pay-if-paid clause
History cannot be rewritten and a bad, but legal, […]
Roads& Bridges | Confusing Waters
CONFUSING WATERS | A Supreme Court ruling leaves room for ambiguity
What happens when there may be a “significant nexus” between “adjacent” and/or […]
