Re: determining sol

Posted by lawguy (216.30.212.58) on April 02, 2003 at 09:24:44:

In Reply to: determining sol posted by rueban on April 02, 2003 at 08:36:07:

The applicable SOL will be determined by which state the suit is brought in.

Generally, the limitations period will be that of the state in which the suit is brought. If you are sued in KY, then it would be the KY limitations period.

However, some states, but not all, have what are called "borrowing statutes" which will "borrow" another state's SOL. Usually, these will apply only when the "cause of action" (i.e. right to sue) arises under the laws of another state or occurred in another state. Borrowing statutes will apply the shorter SOL period of either the state in which the suit is brought, or of the state where the cause of action accrued. (Its possible that a state could have a borrowing statute that would extend a limitations period, but I've never heard of it.)

Thus, if 1) the cause of action (i.e. your defaulting on a credit card) arose in another state, 2) you are sued in a different state, and 3) the state you are sued in has an applicable borrowing statute, then the shorter limitations period will apply. Otherwise, the SOL of the state in which suit is brought will apply.

The issuance of a new card and new account number would not alter any limitations periods. The obligations to pay the amounts already due existed before you lost your old card and got a new one. If the limitations period has already began to run (i.e. if you've already defaulted), the issuance of a new card won't reset this period.

But I would assume you aren't already in default, because it sounds very unlikely that a card issuer would issue a replacement card to a defaulting cardholder. Assuming such, then the limitations period hasn't begun to run, because they don't have a right to sue you because you haven't defaulted yet.

If you have defaulted already, and they gave you a new card, the new card won't restart or toll the limitations period unless you did something else to toll or restart the period (i.e. valid acknowledgement of debt, new contract, partial payment, or whatever else might toll the period for a given state SOL.)

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