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 | Reshaping Agreements
RESHAPING AGREEMENTS | Oral Agreements Must Be Written in Stone
Reuse, reshaping, and/or reapplication of existing materials was the goal in this roadway […]
Pay-If-Paid Unenforceable in Virginia Starting Jan. 1, 2023
As of Jan. 1, 2023, pay-if-paid clauses are unenforceable, regardless of whether a surety/payment bond claim is involved. This is only for […]
How Short is Too Short
A limitations period is too short when it’s unreasonably short.
Construction Contracting Without Relief Clauses During COVID-19
What to do if your contract lacks the parts to handle COVID-19? Considerations for creating new contracts during COVID-19.
Your Contract Can Handle COVID-19
Uncertainty and risk are not new or novel to contractors. Contracts reduce uncertainty and share the risk of doing or providing something. COVID-19 may have contributed to, but it has not single-handedly created, uncertainty and risk.
Contractors Can Use RFI to Notify the Government
The Board (and the government) should not elevate form over substance in evaluating the sufficiency of a contractor’s notice.
Taxes Due!
It’s tax season again, so it’s time to pay the piper.
Contractor Wins when Government Reconsiders Accord
Ever had buyer’s remorse or second-guessed a decision? When the U.S. Army Corps of Engineers did that, a Contractor won its claim […]
Claim Certified with Digital Signature Deemed OK
The law is not a trend-setter. It doesn’t readily change or adapt to tech. So, a commonplace practice in business became a dispute when a claimant digitally certified a claim under the Contract Disputes Act.
