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What are statutes of limitations? Or, is it vital to take timely action

Question

I loaned a friend of mine (at the time) $10,500 about four years ago. This was an oral agreement. No written promissory note was signed. She left California shortly after I gave her the money and is now back in the State. Can I collect from her, or is it too late?

Marilyn J.
Almaden Valley

Dear Marilyn:

Your question involves the rather tricky area of Statutes of Limitation. As in many legal matters, a question may appear to be simple, but a long answer may be necessary.

A statute of limitation is a statute that fixes the latest time within which a civil action may be brought. This is a very complex area of the law, and it is very important for you, as well as our readers, to consult an attorney concerning a question like this.

Statutes of limitation are enacted as a matter of public policy to promote justice by preventing the assertion of stale claims after the lapse of long periods of time. Reasons for this are that frequently evidence has been lost after a period of time, memories have faded, and witnesses have disappeared.

If such a defense of the statute of limitations is valid, it will be a complete defense to the bringing of the claim. The Legislature in Sacramento is the sole decision-maker in this area. It has adopted strict statutes of limitation for every kind of situation. Many statutes of limitation are set forth in the law, and a "catch-all" provision governs those situations that are not addressed explicitly.

I should add also that your question seems to be a matter pertaining to the general civil law of the State of California. There may well be other federal statutes that apply to claims arising under the federal law.

It should also be noted that there are different deadlines for many different categories of claims. For example, a legal action must be commenced within one year for most personal injury cases, two years for oral contracts, three years for property damage, fraud and mistake, and four years for breach of written contracts.

It is not easy, however, to categorically state as to just when the time starts running. It is also often difficult to determine just now long the clock keeps running on the claim. For example, the statute of limitations may be tolled (or held in abeyance) under Civil Code 351 when the defendant is out of the State of California. The statute of limitations may also be tolled under Civil Code §352 if the defendant is under the age of majority, insane, or imprisoned on a criminal charge.

So you see, Marilyn, your question may seem simple but may turn out to be quite involved. This is the kind of question that you should explore with legal counsel in more detail as soon as you can. It is also the kind of question that serves as a good reminder to take prompt action whenever legal rights are at stake. Otherwise, you may find that your rights have vanished into a state of repose. Since definite periods of time have been fixed by the law for the bringing of claims, and if the specified time has elapsed before the commencement of an action, the defense of the statute of limitations will be upheld no matter how unjust or unconscionable the defense may be.