Neuromonitoring Associates v. Centura Health Corp. 2012COA136 (August 16, 2012)

“Time keeps on slipping into the future.” (Steve Miller). But if it slips too far, say three years, the statute of limitations for a contract claim ends. In this case, a smaller company entered into a contract with a big company, who provided nearly all its revenue. The smaller company found out the big company was breaching the contract, but, not wanting the big company to cancel the contract, made a decision to protest but wait to bring a claim.  It waited too long, hoping the six year statute of limitations applied instead. The court of appeals held that because the damages were not liquidated or easily determined, the limitations period was three years. The decision not to pursue the claim kept the clock ticking.  But, if a contract contains a continuing duty to perform, each breach is a new claim. So, multiple, successive breaches within three years were timely and could proceed.

http://www.courts.state.co.us/Courts/Court_Of_Appeals/Opinion/2012/11CA1391-PD.pdf

http://www.cobar.org/opinions/opinion.cfm?opinionid=8631&courtid=1

Advertisements

Leave a comment

Filed under Contracts

Brief this Case

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s