Sheehan & Associates, P.L.C.

Statutes of limitations affect dispute claims

Like all states, Michigan has strict rules regarding when a lawsuit for a breach of contract claim must be filed. If this time frame passes without a formal complaint being filed, the petitioning party may forever be barred from bringing the claim.

There are different statutes of limitations for different types of contracts and claims. For example, an action regarding a surety on a bond of an executor, guardian or administrator must be filed within four years after the discharge of that individual. However, there is only a two-year statute of limitations for actions that charge a surety for costs. Additionally, there is a two-year statute of limitations for claims regarding bonds that derive from a court appeal.

There is a ten-year statute of limitations for actions for bonds of public officers. Likewise, there is a ten-year statute of limitations for cases regarding deed and mortgage covenants. For actions on bonds, notes and similar instruments, there is a ten-year statute of limitations that are based on those instruments obligating the state of Michigan or a municipality within the state. For other claims based on disputes in contracts that are seeking damages, there is a six-year statute of limitations.

These statutes of limitations pertain to lawsuits that seek monetary damages. Additionally, they also apply to lawsuits that are seeking specific performance. Individuals who plan to pursue a breach of contract or other contract dispute claim may not be aware of the timeline in which they must bring forth a claim. An attorney who has experience in business and commercial matters can assess the facts of a contractual dispute and determine the applicable time frame in which an action must be commenced.

Source: Michigan Legislative, "600.5807 Damages for breaches of contract; specific performance; fiduciary bonds; deeds; mortgages; surety bonds; appeal bonds; public obligations.", October 28, 2014

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