Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 7, 2017
The Firm
201-896-4100 info@sh-law.comA statute of repose establishes a deadline within which a lawsuit must be filed after the occurrence of a certain event. As discussed in yesterday’s article, a statute of limitations prescribes a period of limitation for the commencement of certain types of legal action, with the goal of encouraging the resolution of legal claims within a reasonable amount of time. The so-called “clock” begins to run from the time when the plaintiff’s cause of action accrues, typically when the harm giving rise to the claim occurred.
Conversely, statutes of repose are designed to bar actions after a specified period of time has run from the occurrence of some event other than the injury which gave rise to the claim. The goal is to immunize potential defendants from long-term liability. A statute of repose generally can’t be paused or tolled.
Statutes of repose govern the filing of legal claims in several areas of law. In New Jersey, a statute of repose governs construction defect cases. N.J.S.A. § 2A:14-1.1 provides:
No action, whether in contract, in tort, or otherwise, to recover damages for any deficiency in the design, planning, surveying, supervision or construction of an improvement to real property, or for any injury to property, real or personal, or for an injury to the person, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained on account of such injury, shall be brought against any person performing or furnishing the design, planning, surveying, supervision of construction or construction of such improvement to real property, more than 10 years after the performance or furnishing of such services and construction.
Calculation of the ten-year limitations period for the statute of repose typically starts one day after issuance of the certificate of substantial completion for the project. However, New Jersey courts have acknowledged that there may be instances in which another event signals the commencement of the limitations period.
A recent decision by the U.S. Supreme Court highlights the importance of complying with a statute of repose. In California Public Employees’ Retirement System v. ANZ Securities, Inc., et al., 582 U. S. ____ (2017), the Court addressed the Securities Act of 1933’s three-year statute of repose. It provides that “[i]n no event shall any such action be brought . . . more than three years after the security was bona fide offered to the public…”
The Court concluded that the provision, as a statute of repose, was not subject to tolling. “The instruction that ‘[i]n no event’ shall an action be brought more than three years after the relevant securities offering admits of no exception. The statute also runs from the defendant’s last culpable act (the securities offering), not from the accrual of the claim (the plaintiff’s discovery of the defect),” Justice Anthony Kennedy wrote. Accordingly, the California Public Employees’ Retirement System’s late filing of a securities lawsuit was grounds for dismissal.
Because time is of the essence when pursuing legal claims, it is advisable to contact an experienced attorney as soon as you suspect you may have a claim.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!