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  1. #1
    Join Date
    Dec 2009
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    5

    Default Does Email Reset the Statute of Limitations

    My question involves collection proceedings in the State of: California.

    A family member owed me $15k originally on a handshake, starting approximately 9/8/05. He was a trusted business mentor, and I guess I got my first lesson in business. He made erratic payments until he was down to $7k when he stopped. I have an email chain documenting his promises to pay from '06 to '09, with occasional mentions of his intermittent payments.

    On 9/21/09 I eventually convinced him to email an IOU stating:

    Please accept this as an IOU for $7 K

    Thank You [name]
    Question: Does having an email IOU reset or replace the statute of limitations? Are they admissible in small claims?

  2. #2
    Join Date
    Feb 2010
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    CT & IL
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    5,273

    Default Re: Does Email Reset the Statute of Limitations

    I would no think so .. any payment would re-set the SOL though ... so if you ask for a 20 buck payment & he pays, then the date he paid would re-start the SOL.

  3. #3
    Join Date
    Sep 2005
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    98,846

    Default Re: Does Email Reset the Statute of Limitations

    You apparently intend the arguments that the promises from 2007 - 2009 constitute ratification of the debt, and that the IOU in 2009 constitutes a novation? It's one or the other, although you can present competing alternative theories as to why you should be able to recover. Old case law, but on point:
    Quote Quoting Jones v. Wilton (1938) 10 Cal. 2d 493
    [in Rodgers v. Byers, 127 Cal. 528 [60 P. 42], and 1 Cal.App. 284 [81 P. 1123]] it was held... that where an unconditional acknowledgment and promise to pay are made before the statute of limitations has run on a promissory note, an action brought after the time has run on the note is nevertheless upon the note, the effect of the acknowledgment being to continue liability on the note for the statutory period from the date of the acknowledgment. But where the acknowledgment and promise are conditional or qualified, the action must be brought on the new substituted promise.
    Acknowledgment doesn't create a new obligation - it merely extends the time for bringing an action. If the new promise doesn't occur until after the original limitations period expires, the general rule is that the original contract is practically extinguished such that the suit can only be prosecuted based upon the new express promise, or upon the new promise which the law implies from an acknowledgment made in writing.

  4. #4
    Join Date
    Dec 2009
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    5

    Default Re: Does Email Reset the Statute of Limitations

    Quote Quoting Mr. Knowitall
    View Post
    You apparently intend the arguments that the promises from 2007 - 2009 constitute ratification of the debt, and that the IOU in 2009 constitutes a novation? It's one or the other, although you can present competing alternative theories as to why you should be able to recover. Old case law, but on point:

    Acknowledgment doesn't create a new obligation - it merely extends the time for bringing an action. If the new promise doesn't occur until after the original limitations period expires, the general rule is that the original contract is practically extinguished such that the suit can only be prosecuted based upon the new express promise, or upon the new promise which the law implies from an acknowledgment made in writing.
    So to be clear,

    • The written acknowledgements of the original verbal agreement each falling with the two year limitation extend the time for bringing an action the full two years from their created date?
    • The written IOU may constitute a new and separate obligation.


    Now, that said, can it be argued that there are now two actionable debts involved? Not to be greedy, but strategically can he be backed into a corner of having to admit they are one in the same, thus admitting a valid debt, so he is not potentially obligated for both?

    I'm certain there exists at least the implication that they are one in the same vis a vis the email chain that we can both produce, but hypothetically could he be obligated for two separate debts? I'll not ask for separate judgements, just curious.

    Lastly, does the simple IOU, quoted in its entirety above, constitute an actionable contract or agreement? There is no date or recourse mentioned, etc.

  5. #5
    Join Date
    Dec 2009
    Posts
    5

    Default Re: Does Email Reset the Statute of Limitations

    Response anyone?

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