When parties in a business relationship get into a legal dispute, one party may turn to the courts to assert their rights in a lawsuit. However, Oregon law limits how long a party has to file a lawsuit to resolve a business dispute. This deadline, known as the statute of limitations, ensures parties file their claims promptly so courts can resolve them as quickly as possible. In Oregon, the limitations period for a business lawsuit can depend on the nature of a party’s claim.
The General Rule – Six Years for Contract Claims
Most business lawsuits involve claims that one party in a business relationship has breached an agreement. As a result, a business lawsuit may assert a breach-of-contract claim. Under Oregon’s statute of limitations for contract claims, a party typically has six years to file a lawsuit to pursue that claim.
Common Deviations from the Six-Year Limitations Period
Certain circumstances may apply a different limitations period for a business lawsuit than the six-year period for contract claims. Other limitations periods commonly applied to business lawsuit claims include:
- Collection of unpaid debts: Six years
- Breach of contract claims for contracts involving the sale of goods: Four years under Oregon’s version of the Uniform Commercial Code
- Fraud: Two years
- Unfair trade or business practices: One year
When Does the Limitations Period Start Running
The statute of limitations for a business lawsuit typically begins when a party commits the act or acts underpinning the claim in a lawsuit. For example, the limitations period for a contract claim begins when a party breaches a business agreement. However, certain factors can alter when the limitations period for a business lawsuit begins to run. Under the discovery rule, a limitations period does not begin to run until a claimant knows or should know of their injury and the facts underpinning their claim. For example, the limitations period for a business lawsuit asserting a fraud claim may not begin to run until a claimant discovers a counterparty’s fraud or should have discovered the fraud through reasonably diligent inquiries.
Partnership Disputes and Breach of Fiduciary Duty Claims
Business lawsuits can also arise from disputes between business partners or claims that partners breached their fiduciary obligations to each other and to the company. Business partner disputes or fiduciary claims do not have specific statutes of limitations. Instead, courts impose limitations periods based on the substance of the claims and the most relevant analogs to other types of claims (e.g., contract claims, fraud claims, etc.). As a result, how a party frames its lawsuit can determine the applicable limitations period.
Circumstances That Can Alter the Limitations Period
Other circumstances that can change the length of time that a party has to file a business lawsuit include:
- Fraudulent concealment: A court may “toll” (pause) the limitation period for a claim if a defendant intentionally conceals evidence of their liability from a claimant.
- Written acknowledgment of debt: When a party who owes a debt signs a written document acknowledging that debt, that written statement can restart the six-year limitations period for actions to collect debts. Making a partial payment toward a debt can also restart the limitation period.
Contact Our Business Litigation Attorneys Today
When you need to file a lawsuit to vindicate your rights in a business dispute, the statute of limitations imposes a deadline for filing your suit. Contact Wayne A. Lamb Law today for an initial consultation with a civil litigation lawyer to discuss the details of your business dispute and determine how long you have to file a lawsuit to pursue your rights in court.