A Guide for the Perplexed
Statute of Limitations - “Borrowing” statutes and rules
In General
Every state in the U. S. sets time limits on various types of lawsuits. For example, personal injury claims from automobile accidents usually have to be filed in court within one or two years after the accident happened. Lawsuits for breach of a written contract might be limited to four, five, or more years. It is different from state to state.
The laws that establish these time limitations are called “statutes of limitation.” As with any legislative enactment, statutes of limitations can be amended and changed at any time without warning.
When the time for filing a lawsuit has expired, a defendant can ask the court to dismiss the action. It is important to know that a statute of limitations defense is not automatic. If the age of a claim is not affirmatively presented to the court within the time allowed, the defense might be forfeited.
Statutes of limitation have wider relevance, If a debt collection agency improperly attempts to collect a debt that is older than the statute of limitation allows, it is possibly a violation of the federal Fair Debt Collection Practices Act or state consumer protection laws.
However, such “zombie debts” can still legally appear on your credit report even if they cannot be collected.
Statutes of limitation do not eliminate the debt or absolve one from liability when the time limit is expired. The simple act of crossing a state line might resurrect a claim in the second state that had expired in the first state. This can happen when two states have different limitations on actions.
A statute of limitations is typically considered to be a procedural law that restricts a court’s ability to docket a case based on its age. A state court normally uses its own state’s statute of limitations for any case that is filed. Choice of law decisions generally distinguish between procedural and substantive law issues. Since state time limits on actions are usually, but not always, procedural the forum state rules generally apply.
A “borrowing” statute or rule, on the other hand, requires a court to apply another limitation on actions. A state may thus borrow a different statute of limitations for a particular type of action. One main purpose of borrowing statutes is to prevent plaintiffs from engaging in forum shopping in order to find the longest available statute of limitations, but there is a wide diversity of state laws.
A borrowing statute may be applied where a plaintiff sues in a state different from the state where the act that is the basis of the lawsuit occurred. For example, if an individual is injured in a car accident with an out-of-state driver, that injured person may sue in the driver's home state. If the state in which the lawsuit is filed has a borrowing statute, that state may apply the other state's statute of limitations, as long as it is a shorter statute of limitations than that of the borrowing state.
In determining which state is the one in which the cause of action arose, states will apply various choice of law principles, which may be quite complicated. States that do not have borrowing statutes may apply their own statutes of limitation to most or all lawsuits filed in their state courts, although at times they may apply an out-of-state limitations period based upon a choice of law analysis.
In some states, the borrowing statute will only be applied if the plaintiff was not a resident of that state at the time the cause of action accrued; in others, it will only apply if the defendant was not a resident. Some states limit the use of borrowing statutes to specific types of cases, such as breach of contract actions.
States that do not have borrowing statutes.
Arkansas
Connecticut
Georgia
Indiana
Louisiana
Maine
Maryland
Nebraska
New Hampshire
New Jersey
New Mexico
North Dakota
Ohio (tort actions only)
Oregon
South Carolina
South Dakota
Vermont
Thirty-three states have borrowing statutes in effect.
Alabama
Ala. Code § 6-2-17
Effect of foreign statutes upon actions on contracts.
When the statute of limitations of another state or foreign country has created a bar to an action upon a contract made or act done in such state or country while the party sought to be charged thereby was a resident of such state or country, the bar thus created is effectual in this state against any action commenced thereon in the same manner it would have been in the state or country where the act was done or contract made.
“In Alabama, the traditional choice of law rule of lex loci delicti governs tort causes of action and requires that the substantive law of the place where the tort occurred must be employed, while procedural law of the forum state is to be applied.”
Randolph v. Tennessee Valley Authority, 792 F. Supp. 1221 (N. D. Ala. 1992)
See also: Jones v. Triple Crown Services Co., 44 F. Supp. 2d 1339 (M. D. Ala. 1999)
Alaska
Alaska Statutes § 09.10.220
Action arising in other jurisdictions between nonresidents
When a cause of action has arisen in another state or in a territory or foreign country between nonresidents of this state, and by the laws of the state, territory, or country where the cause of action arose that action cannot be maintained because of a lapse of time, the action may not be maintained in this state.
“The trial court held that pursuant to AS 09.10.220, the six year statute of limitation on judgments applicable in Nevada bars recovery of arrearages which accrued prior to September 1971.” [f.n.1]
Malekos v. Chloe Ann Yin, 655 P. 2d 728 (Alaska 1982)
Arizona
AZ Rev. Stat. § 12.506
Action barred by foreign statute of limitation, bankruptcy or insolvency
A. No action shall be maintained against a person removing to this state from another state or foreign country to recover upon an action which was barred by the law of limitations of the state or country from which he migrated.
B. No action shall be brought to recover money from an immigrant who was released from its payment by the bankruptcy or insolvency laws of the state or country from which he migrated.
California
California Code of Civil Procedure § 361.
Effect of Limitation Laws of Other States
When a cause of action has arisen in another State, or in a foreign country, and by the laws thereof an action thereon cannot there be maintained against a person by reason of the lapse of time, an action thereon shall not be maintained against him in this State, except in favor of one who has been a citizen of this State, and who has held the cause of action from the time it accrued.
Colorado
CO Rev. Stat. § 13-80-110
Causes barred in state of origin
If a cause of action arises in another state or territory or in a foreign country and, by the laws thereof, an action thereon cannot be maintained in that state, territory, or foreign country by reason of lapse of time, the cause of action shall not be maintained in this state.
Delaware
10 Delaware Code § 8121
Cause of action arising outside State
Where a cause of action arises outside of this State, an action cannot be brought in a court of this State to enforce such cause of action after the expiration of whichever is shorter, the time limited by the law of this State, or the time limited by the law of the state or country where the cause of action arose, for bringing an action upon such cause of action. Where the cause of action originally accrued in favor of a person who at the time of such accrual was a resident of this State, the time limited by the law of this State shall apply.
Florida
Florida Statutes § 95.10
Cause of action arising in another state.
When the cause of action arose in another state or territory of the United States, or in a foreign country, and its laws forbid the maintenance of the action because of lapse of time, no action shall be maintained in this state.
Hawaii
Hawaii Rev. Stat. § 657-9
Action barred in foreign jurisdiction
When a cause of action has arisen in any foreign jurisdiction, and by the laws thereof an action thereon cannot there be maintained against a person, by reason of the lapse of time, an action thereon shall not be maintained against the person in this State, except in favor of a domiciled resident thereof, who has held the cause of action from the time it accrued.
Idaho
Idaho Code § 5-239
Actions barred in another state
When a cause of action has arisen in another state or territory, or in a foreign country, and by the laws thereof an action thereon can not there be maintained against a person by reason of the lapse of time, an action thereon shall not be maintained against him in this state, except in favor of one who has been a citizen of this state and who has held the cause of action from the time it accrued.
Illinois
735 IL Comp.d Stat. 13-210
Foreign limitation.
When a cause of action has arisen in a state or territory out of this State, or in a foreign country, and, by the laws thereof, an action thereon cannot be maintained by reasons of the lapse of time, an action thereon shall not be maintained in this State.
Iowa
Iowa Code § 614.7
Bar in foreign jurisdiction.
When a cause of action has been fully barred by the laws of any country where the defendant has previously resided, such bar shall be the same defense here as though it had arisen under the provisions of this chapter; but this section shall not apply to causes of action arising within this state.
Kansas
Kansas Statutes § 60-516
Actions originating in another state
Where the cause of action has arisen in another state or country and by the laws of the state or country where the cause of action arose an action cannot be maintained thereon by reason of lapse of time, no action can be maintained thereon in this state except in favor of one who is a resident of this state and who has held the cause of action from the time it accrued.
Kentucky
Kentucky Rev. Stat. KRS § 413.320
Cause of action barred here if barred where it accrued
When a cause of action has arisen in another state or country, and by the laws of this state or country where the cause of action accrued the time for the commencement of an action thereon is limited to a shorter period of time than the period of limitation prescribed by the laws of this state for a like cause of action, then said action shall be barred in this state at the expiration of said shorter period.
Minnesota
Minnesota Statutes 541.31
Conflict of Laws - Limitation Periods
Subdivision 1. General. (a) Except as provided by subdivision 2 and section 541.33, if a claim is substantively based:
(1) upon the law of one other state, the limitation period of that state applies; or
(2) upon the law of more than one state, the limitation period of one of those states chosen by the law of conflict of laws of this state applies.
(b) The limitation period of this state applies to all other claims.
Subdivision 2. Action arising out of state; resident plaintiff. If a cause of action arises outside of this state and the action is barred under the applicable statute of limitations of the place where it arose, the action may be maintained in this state if the plaintiff is a resident of this state who has owned the cause of action since it accrued and the cause of action is not barred under the applicable statute of limitations of this state.
Massachusetts
Massachusetts General Laws Ch. 260, § 9
Nonresident defendant; suspension of limitation
If, when a cause of action hereinbefore mentioned accrues against a person, he resides out of the commonwealth, the action may be commenced within the time herein limited after he comes into the commonwealth; and if, after a cause of action has accrued, the person against whom it has accrued resides out of the commonwealth, the time of such residence shall be excluded in determining the time limited for the commencement of the action; but no action shall be brought by any person upon a cause of action which was barred by the laws of any state or country while he resided therein.
Michigan
Mich. Comp. Laws § 600.5861
Cause of action accruing without state; limitation on commencement of action.
An action based upon a cause of action accruing without this state shall not be commenced after the expiration of the statute of limitations of either this state or the place without this state where the cause of action accrued, except that where the cause of action accrued in favor of a resident of this state the statute of limitations of this state shall apply. This amendatory act shall be effective as to all actions hereinafter commenced and all actions heretofor commenced now pending in the trial or appellate courts.
Mississippi
Mississippi Code. § 15-1-65
Action barred in another jurisdiction barred here
When a cause of action has accrued outside of this state, and by the laws of the place outside this state where such cause of action accrued, an action thereon cannot be maintained by reason of lapse of time, then no action thereon shall be maintained in this state; provided, however, that where such a cause of action has accrued in favor of a resident of this state, this state's law on the period of limitation shall apply.
Missouri
MO Rev Stat § 516.190
Limitations on actions originating in other states. — Whenever a cause of action has been fully barred by the laws of the state, territory or country in which it originated, said bar shall be a complete defense to any action thereon, brought in any of the courts of this state.
Montana
Montana Code Annotated § 27-2-104
Application of this state's statutes of limitations -- actions against nonresidents. When a cause of action that does not involve the title to or possession of real property within the state accrues against a person who is not then a resident of the state, an action is governed by part 5 of this chapter.
Montana Code Annotated §27-2-503.
Conflict of laws -- limitation periods.
1) Except as provided by 27-2-505, if a claim is substantively based:
(a) upon the law of one other state, the limitation period of that state applies; or
(b) upon the law of more than one state, the limitation period of one of those states chosen by this part applies.
(2) The limitation period of Montana applies to all other claims.
Nevada
NV Rev Stat § 11.020
Effect of laws of limitation of other states or countries. When a cause of action has arisen in another state, or in a foreign country, and by the laws thereof an action thereon cannot there be maintained against a person by reason of the lapse of time, an action thereon shall not be maintained against the person in this State, except in favor of a citizen thereof who has held the cause of action from the time it accrued.
New York
NY CPLR 202
Cause of Action Accruing Without the State. An action based upon a cause of action accruing without the state cannot be commenced after the expiration of the time limited by the laws of either the state or the place without the state where the cause of action accrued, except that where the cause of action accrued in favor of a resident of the state the time limited by the laws of the state shall apply.
North Carolina
North Carolina General Statute § 1-21
Defendant out of State; when action begun or judgment enforced.
If when the cause of action accrues or judgment is rendered or docketed against a person,
he is out of the State, action may be commenced, or judgment enforced within the times herein
limited after the return of the person into this State, and if, after such cause of action accrues or
judgment is rendered or docketed, such person departs from and resides out of this State, or
remains continuously absent therefrom for one year or more, the time of his absence shall not
be a part of the time limited for the commencement of the action or the enforcement of the
judgment. Provided, that where a cause of action arose outside of this State and is barred by the
laws of the jurisdiction in which it arose, no action may be maintained in the courts of this State
for the enforcement thereof, except where the cause of action originally accrued in favor of a resident of this State.
The provisions of this section shall not apply to the extent that a court of this State has or
continues to have jurisdiction over the person under the provisions of G.S. 1-75.4.
Ohio
ORC 2305.03(B)
No tort action, as defined in section 2305.236 of the Revised Code, that is based upon a cause of action that accrued in any other state, territory, district, or foreign jurisdiction may be commenced and maintained in this state if the period of limitation that applies to that action under the laws of that other state, territory, district, or foreign jurisdiction has expired or the period of limitation that applies to that action under the laws of this state has expired.
Oklahoma
12 OK Stat § 105
Law governing
The period of limitation applicable to a claim accruing outside of this state shall be that prescribed either by the law of the place where the claim accrued or by the law of this state, whichever last bars the claim.
Pennsylvania
42 Pa. C.S. § 5521
Limitations on foreign claims
(a) Short title of section This section shall be known and may be cited as the "Uniform Statute of Limitations on Foreign Claims Act."
(b) General ruleThe period of limitation applicable to a claim accruing outside this Commonwealth shall be either that provided or prescribed by the law of the place where the claim accrued or by the law of this Commonwealth, whichever first bars the claim.
(c) Definition As used in this section "claim" means any right of action which may be asserted in a civil action or proceeding and includes, but is not limited to, a right of action created by statute.
Rhode Island
R.I. Gen. Laws § 9-1-18 (1969);
Effect of absence from state on limitations.
If any person against whom there is or shall be cause for any action, as enumerated in this chapter, in favor of a resident of the state, shall at the time the cause accrues be outside the limits of the state, or being within the state at the time the cause accrues shall go out of the state before the action is barred by the provisions of this chapter, and does not have or leave property or estate in the state that can be attached by process of law, then the person entitled to the action may commence the action, within the time before limited, after the person has returned into the state in such a manner that an action may, with reasonable diligence, be commenced against him or her by the person entitled to the action; provided, however, that no action shall be brought by any person upon a cause of action accruing outside this state which was barred by limitation or otherwise in the state, territory, or country in which the cause of action arose while he or she resided in the state.
Tennessee
Tenn. Code. § 28- 1-112
Application of foreign statutes.
Where the statute of limitations of another state or government has created a bar to an action upon a cause accruing therein, while the party to be charged was a resident in such state or such government, the bar is equally effectual in this state.
Texas
Tx. Civ. Prac. and Rem. Code § 16.066
Action on Foreign Judgment
(a) An action on a foreign judgment is barred in this state if the action is barred
under the laws of the jurisdiction where rendered.
(b) An action against a person who has resided in this state for 10 years prior to the action may not be brought on a foreign judgment rendered more than 10 years before the commencement of the
action in this state.
(3) In this section "foreign judgment" means a judgment or decree rendered in another state or a foreign country.
Tx. Civ. Prac. and Rem. Code § 16.067
Claim Incurred Prior to Arrival in this State
(a) A person may not bring an action to recover a claim against a person who has moved to this state if the claim is barred by the law of limitations of the state or country from which the person came.
(b) A person may not bring an action to recover money from a person who has moved to this state and who was released from its payment by the bankruptcy or insolvency laws of the state or country
from which the person came.
(c) A demand that is against a person who has moved to this state and was incurred prior to his arrival in this state is not barred by the law of limitations until the person has lived in this state for 12 months. This subsection does not affect the application of Subsections (a) and (b).
Utah
Ut. Code § 78B-2-103
Action barred in another state barred in Utah.
A cause of action which arises in another jurisdiction, and which is not actionable in the other jurisdiction by reason of the lapse of time, may not be pursued in this state, unless the cause of action is held by a citizen of this state who has held the cause of action from the time it accrued.
Virginia
Va. Code § 8.01-247
When action on contract governed by the law of another state or country barred in Virginia.
No action shall be maintained on any contract which is governed by the law of another state or country if the right of action thereon is barred either by the laws of such state or country or of this Commonwealth.
Washington
Wa. Rev. Code § 4.16.290
Foreign statutes of limitation, how applied.
When the cause of action has arisen in another state, territory or country between nonresidents of this state, and by the laws of the state, territory or country where the action arose, an action cannot be maintained thereon by reason of the lapse of time, no action shall be maintained thereon in this state.
West Virginia
W. Va. Code § 55-2-17
. . . . And upon a contract which was made and was to be performed in another state or country, by a person who then resided therein, no action shall be maintained after the right of action thereon is barred either by the laws of such state or country or by the laws of this state.
Wisconsin
Wis. Stat. § 893.07
Application of foreign statutes of limitation.
(1) If an action is brought in this state on a foreign cause of action and the foreign period of limitation which applies has expired, no action may be maintained in this state.
(2) If an action is brought in this state on a foreign cause of action and the foreign period of limitation which applies to that action has not expired, but the applicable Wisconsin period of limitation has expired, no action may be maintained in this state.
Wyoming
WY Stat. § 1-3-117
Effect of foreign law
If by the laws of the state or country where the cause of action arose the action is barred, it is also barred in this state.
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