Bill Text: NJ S1742 | 2020-2021 | Regular Session | Introduced


Bill Title: Shortens statute of limitations on certain contracts claims; clarifies that partial payment on obligation either tolls or revises, as applicable, relevant statute of limitations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2020-02-13 - Introduced in the Senate, Referred to Senate Judiciary Committee [S1742 Detail]

Download: New_Jersey-2020-S1742-Introduced.html

SENATE, No. 1742

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 13, 2020

 


 

Sponsored by:

Senator  NIA H. GILL

District 34 (Essex and Passaic)

 

 

 

 

SYNOPSIS

     Shortens statute of limitations on certain contracts claims; clarifies that partial payment on obligation either tolls or revises, as applicable, relevant statute of limitations.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning certain statutes of limitations, and amending N.J.S.2A:14-1 and N.J.S.2A:14-24.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    N.J.S.2A:14-1 is amended to read as follows:

     2A:14-1.     Every action at law for trespass to real property, for any tortious injury to real or personal property, for taking, detaining, or converting personal property, for replevin of goods or chattels, or for any tortious injury to the rights of another not stated in sections 2A:14-2 and 2A:14-3 of this Title, [or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants,] shall be commenced within 6 years next after the cause of any such action shall  have accrued.

     Every action at law for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents, and servants, shall be commenced within 3 years next after the cause of any such action shall have accrued. 

     This section shall not apply to any action for breach of any contract for sale governed by section 12A:2-725 of the New Jersey Statutes.

(cf: P.L.1961, c. 121, s.1)

 

     2.    N.J.S.2A:14-24 is amended to read as follows:

     2A:14-24.   In actions at law grounded on any simple contract, no acknowledgment or promise by words only shall be deemed sufficient evidence of a new or continuing contract, so as to take any case out of the operation of this chapter, or to deprive any person of the benefit thereof, unless such acknowledgment or promise shall be made or continued by or in some writing to be signed by the party chargeable thereby.

     Where there shall be 2 or more joint contractors or executors or administrators of any contractor, no such joint contractor, executor or administrator shall lose the benefit of this chapter so as to be chargeable in respect or by reason only of any written acknowledgment or promise signed by another or others of them.  If, in an action against 2 or more joint contractors, or executors or administrators of a contractor, it appears at the trial or otherwise that the plaintiff, although barred as to 1 or more of such joint

contractors, or executors or administrators, shall, nevertheless be entitled to recover against any other or others of the defendants by virtue of a new acknowledgment or promise, or otherwise, judgment may be given, with costs, for the plaintiff as to such defendant or defendants, against whom he shall recover, and for the other defendant or defendants against the plaintiff.

     Nothing in this section shall take away, lessen or alter the effect of any payment of principal or interest made by any person whatsoever on the obligation in suit, which, consistent with case law, tolls or revives, as applicable, the relevant statute of limitations.

(cf: N.J.S.2A:14-24)

 

     3.    This act shall take effect immediately, and apply to all causes of action which accrue on or after that date.

 

 

STATEMENT

 

     This bill would reduce the statute of limitations on contract lawsuits not covered by the Uniform Commercial Code, N.J.S.12A:1-101 et seq., from six years to three years.  Additionally, it clarifies that any partial payment on a debt obligation, whether paid toward principal or interest, either tolls or revives, as  applicable, the relevant statute of limitations for that obligation.  This clarification is an acknowledgement of New Jersey's extensive case law on the "partial payment rule" and how it affects the calculation of statutes of limitations, or provides for a complete revival of same.

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