The “Statutes of Limitation”

From time to time, I receive telephone calls from clients who want to know how long they have to take action against someone. Ohio, as do all states, set time limitations by which you must file legal action. This is known in legal jargon as the “Statute of Limitations.” While this term is somewhat descriptive, it fails to completely describe some of the dates of which you should be aware. The Ohio Revised Code provide a series of statutes for this purpose. There are some dates set forth by which you must file an action. There are other dates that are dates of expiration. Allow me to explain.

Statute of Limitations

The State of Ohio sets, by statute, time limits by which you must file an action. Failure to file by that time nullifies any action. Some of the important dates are:

• Injury to person - If you or your employee is hurt in some type of accident (other than those injuries covered by statute such as injuries on the job) you have two years from the time you incurred the injury or discovered the injury. For example, if you are injured in an automobile accident, you have two years to file an action.

• Professional Malpractice - If you were injured as a result of negligence by a professional, you have one year from the time or the injury or when you discovered the injury to file an action. Giving a medical professional the appropriate notice can extend the time limit by 180 days in certain circumstances. If, for example, you incur bodily injury due to a doctor’s negligence and do not discover that injury for some time, you, generally, have one year from the date you discovered that injury to file an action.

• Contracts - If the contract is in writing, you have 15 years to file an action for breach of contract. If the contract was not in writing (known as an “oral contract”), you have only 6 years. Remember my adage - Always get it in writing!

• Collection on Account - If you keep running accounts, you have 6 years to file an action. You will note this is the same as your time limit for an oral contract. Therefore, it is important to obtain a written contract setting balance limits, guarantees or other issues relating to the sales of goods and/or services.

• Dishonored checks and drafts - There is a three year limitation. Note, this does not apply to the bank where you presented the check or the bank upon which the check was drawn. The bank’s liability is set forth by separate statute that outlines limitations on their liability.

• Judgments - Judgments are valid for 21 years.

• Embezzled funds - Although any resolution of criminal action may require reimbursement, the civil limitation is one year.

Federal statutes also contain limitations relating to issues involving federal projects, jobs and other issues.

Time Limits

While not exactly statutes of limitation, Ohio and the US Government do put limitations on the enforcement of certain liens and judgment.

• Mortgages - A mortgage that has not been released but has been of record for 21 years past it due date is deemed to be of no effect.

• Mechanic’s Lien - This type of lien is valid for 6 years. The lien is not renewable. Therefore, you must take action to foreclose within 6 years or lose your rights related to that realty.

• Judgment Liens - A judgement lien must be renewed every 5 years. This lien will only be enforceable as long as the judgment is in force. Note, although a judgment is valid for 21 years, a lien recorded pursuant to that judgment must be renewed every 5 years.

• Federal Tax Liens - This type of lien must be renewed every 10 years. Note, this type of lien attaches to after acquired property. A federal tax lien runs with the person, not the land. Therefore, if a federal tax lien is placed upon you and you subsequently purchase realty, that lien attaches to the newly acquired property.

• Federal Judgment Lien - This lien is effective for 20 years and is renewable.

• Ohio State Liens - This type of lien is valid for 15 years and is renewable if the renewal is filed within 6 months of the expiration of the lien.

• Condominium Lien - Liens by condominium association for CAM or other charges are valid for 5 years unless renewed prior to expiration.

• Child Support Lien - Liens upon property resulting from support issues have no expiration date and attach to after acquired property.

• UCC Financing Statements - Also known as “chattel mortgages,” these are valid for 5 years unless renewed prior to expiration or the term of the mortgage if filed as security along with the mortgage.

Also note that dower rights (rights of a spouse relating to property owned by the other spouse) attach to all property owned by a husband or wife. Also be aware that various state and federal laws may alter these date limitations in specific instances such as workers compensation, subcontractor rights on federal projects, etc.