Features

A defendant can cite the statute of limitations as a defense in court. If the time period for the underlying cause of action had expired when the lawsuit was filed, the suit could be dismissed.

Types

Statute of limitations time periods differ from case to case, whether it is breach of contract, negligence, securities fraud or violations of state consumer-protection statutes.

Stopping the Clock

Under certain circumstances, a statute of limitations period will be stopped if a potential defendant has concealed sufficient information through fraud or misrepresentation. The statute of limitations period may also be halted until the potential plaintiff discovers the harm or injury sustained. This frequently occurs in medical malpractice claims in which a patient may not become immediately aware of the harm suffered.

Considerations

The statute of limitations may vary from state to state. The period for a breach of contract action may be three years in one state and six years in another.

Function

The purpose of the statute of limitations is to eliminate the filing of lawsuits long after the circumstances that caused a dispute have passed.

Source:

Cornell University School of Law: Statute of Limitations