Unless the parties agree otherwise, the Statute of Limitations for a breach of contract claim in Michigan is six years. However, the parties may agree by contract to a shorter limitations period. A court would not enforce a one day or one week limitations period, but a contractual limitations period as short as one year has been regularly enforced by the Michigan courts.
The Michigan Court of Appeals continued this trend on September 29, 2009, when it issued its decision in Siuda v Tobin. The contract for purchase of a modular home stated that any claim had to be filed no more than one year from the date of sale of the home, rather than the normal six years. The purchasers claimed that the home was damaged during construction, but failed to bring suit until three years after construction began. The Court of Appeals rejected all of the purchasers’ arguments against the enforcement of the shortened Statute of Limitations.
You should review the forms and contracts that your company uses, and decide whether to shorten the time period that your customers or suppliers have to bring a lawsuit. On the flip side, if you have a potential lawsuit, you need to review the contracts to make sure how long you have to bring a claim. Don’t simply assume that the Statute of Limitations has not been modified.
Click to Download Case from Michigan Court of Appeals in PDF Format
This article was written by Mark S. Demorest, Managing Member of Demorest Law Firm
