STRICT 4-YEAR STATUTE OF LIMITATIONS DIDN’T APPLY
After it delivered tobacco goods to defendants – who operated a retail store – the latter failed to remit payment, and a lawsuit was filed for “breach of contract” and to “recover on an account stated.”
While the defendants later sought to dismiss the dispute, claiming that the matter was time-barred, the Suffolk County Supreme Court disagreed, and denied the motion.
On appeal, the Appellate Division, Second Department, noted that while a four-year statute of limitations typically applied to contracts relating to the sale of goods, and that the case had been filed beyond the four year limitations period (which usually accrues upon delivery), the plaintiff convincingly demonstrated that that the parties had a “custom and practice,” where merchandise was delivered on credit, and payment would be made at a “later date.”
Given that practice, the AD2 agreed with the court below that the case wasn’t time-barred, and that the litigation could continue.
Think it’s time to pay up?
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DECISION