If you have incurred losses due to a broken contract, you can recover monetary or other damages you sustained.
However, there is a legal time limit that is placed on your pursuit of recovery. It’s known as the statute of limitations.
If you fail to file a lawsuit within the time allowed by law, you may be permanently barred from seeking legal remedies.
The length of the statute of limitations varies from state to state. And it can be extended when all parties reach a mutual agreement to toll the time period.
In Florida, the SOL period can range from 2 to 5 years, depending on the type of civil action you wish to pursue.
In breach of contract cases, the time period is 5 years when a written contract is involved.
Florida Court’s Opinion
In Beck vs. Lazard Freres & Co, LLC, the Florida court barred an action that was filed 8 years after a contract breach occurred.
The lawsuit was initiated by Beck, a trustee for Southeast Banking Corporation, against Lazard Freres & Co., an investment firm. Lazard was accused of writing a letter endorsing another banking institution which later proved to be detrimental to Southeast.
Beck alleged that Lazard breached its contract with Southeast, failed to honor its duty of good faith and failed to perform services with reasonable care.
Lazard wrote the letter in September of 1988. The purchase was approved by Southeast in December of 1988. However, the suit for breach of contract was filed 8 years later, in December of 1996.
Because Beck wasn’t aware of the breach for years, he believed that the SOL did not begin to run until the breach was brought to his attention, and not when the actual letter was written and delivered.
The Florida court disagreed, and held that:
“Actions for breach of contract are barred five years after the cause of action accrued regardless of whether the plaintiff knew that it had a claim.”
Beck’s lawsuit was dismissed and his claim for breach of contract was barred by Florida’s five year statute of limitations.
If you have been injured due to a breached contract or agreement, contact our contract law attorneys before it’s too late.
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Tags: breach of contract, Broward County, Florida, Fort Lauderdale, SOL, statute of limitations
