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  1. #1
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    Default What Statute of Limitations Applies for a Debt Accrued in Another State

    Hi, I would like to first thank you all for taking the time to aid me in this matter. My question is this:

    I occurred a utility bill debt in NY, whose Statute of Limitations is 6yrs. I then moved to NC, whose Statute of Limitations is 3yrs. If I was pursued for debt collection, under what state would the jurisdiction (or statute) apply?

    I am asking this because it is my understanding that certain states have laws that state that debt collection must be filled in the state of residency and I am wondering if NC is one of those states. Meaning that if I was pursued for debt collection, the debt collectors would be forced to file the suit in NC under which the Statute of Limitations are more favorable to the consumer.

    Again I would like to thank you all for helping me with this matter.

  2. #2
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    Default Re: North Carolina and New York Statute of Limitations

    The fundamental truth is that the laws of where the lawsuit is filed apply.

    First off, if you moved from New York, the statute of limitations stops running until your return. So if you moved out of NY before the end of the six years, you can still be sued there.

    They can't sue you in NC after three years. NC has a "borrowing" statute but it only works to shorten the limitations period.

  3. #3
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    Default Re: North Carolina and New York Statute of Limitations

    Quote Quoting craigfin3rd
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    I occurred a utility bill debt in NY, whose Statute of Limitations is 6yrs. I then moved to NC, whose Statute of Limitations is 3yrs. If I was pursued for debt collection, under what state would the jurisdiction (or statute) apply?
    You've got more to worry about than the SOL. There's venue.

    NY allows a lawsuit to be filed in the county where one of the parties resides. That includes a corporation.

    See:

    http://law.justia.com/codes/new-york...article-5/503/

    The utility company could sue you in NY, get a judgment, domesticate (transfer) it to NC and enforce it there.

  4. #4
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    Default Re: North Carolina and New York Statute of Limitations

    The utility company could sue you in NY and then domesticate the judgment in NC and get the benefit of the 6 year statute of limitations that that state has. It could sue you in NC but would be limited to the period allowed by NC statutes. Either way, the enforcement of the judgment is governed by the law of the state where the property that is to be attached is located. Note that the statute of limitations in NY does not get extended while the defendant is out-of-state. That rule is common for extending the SOL for criminal prosecutions, but is not one most states use for civil actions.

  5. #5
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    Default Re: North Carolina and New York Statute of Limitations

    Quote Quoting Taxing Matters
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    Note that the statute of limitations in NY does not get extended while the defendant is out-of-state. That rule is common for extending the SOL for criminal prosecutions, but is not one most states use for civil actions.
    The NY tolling statute doesn't appear to distinguish between civil and criminal actions.

    http://law.justia.com/codes/new-york...article-2/207/

  6. #6
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    Default Re: North Carolina and New York Statute of Limitations

    While there are differing rules for tolling for criminal and civil actions, the civil actions very MUCH are tolled in NY when the defendent is out of state.

  7. #7
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    Default Re: North Carolina and New York Statute of Limitations

    Quote Quoting flyingron
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    While there are differing rules for tolling for criminal and civil actions, the civil actions very MUCH are tolled in NY when the defendent is out of state.
    Merely being out of state is not enough. Under New York Civil Practice Law and Rules (CPLR) § 207 (which Jack linked), that tolling provision does not apply if personal jurisdiction may be obtained by some means other than personal service within NY state. CPLR § 313 allows service without the state in the same manner as service within the state if the cause of action arises within NY state, as would apparently be the case here. Since the rules authorize service outside the state in that situation the tolling provisions of CPLR § 207 would not apply.

  8. #8
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    Default Re: North Carolina and New York Statute of Limitations

    Quote Quoting adjusterjack
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    The NY tolling statute doesn't appear to distinguish between civil and criminal actions.
    The statute you cite is only for civil actions.
    Quote Quoting Taxing Matters
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    Merely being out of state is not enough. Under New York Civil Practice Law and Rules (CPLR) § 207 (which Jack linked), that tolling provision does not apply if personal jurisdiction may be obtained by some means other than personal service within NY state. CPLR § 313 allows service without the state in the same manner as service within the state if the cause of action arises within NY state, as would apparently be the case here. Since the rules authorize service outside the state in that situation the tolling provisions of CPLR § 207 would not apply.
    That is correct. New York courts have been very resistant to applying the tolling statute -- not just due to CPLR Sec. 313, but also CPLR Sec. 308, section five of which provides for service, "in such manner as the court, upon motion without notice, directs, if service is impracticable under paragraphs one, two and four of this section." The narrow circumstances under which a defendant's absence from the state may result in tolling under Sec. 207 are outlined in Plitman v. Leibowitz, 990 F.Supp. 336, 337 (S.D.N.Y.1998), and it would not be unreasonable to argue that, when it comes to tolling, the exceptions are so broad that they have all but eliminated the rule.

  9. #9
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    Default Re: North Carolina and New York Statute of Limitations

    Quote Quoting Mr. Knowitall
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    ...and it would not be unreasonable to argue that, when it comes to tolling, the exceptions are so broad that they have all but eliminated the rule.
    I agree that’s a pretty fair assessment of it. Indeed, the court in the Plitman case linked makes much the same point: “Defendants are correct that, under governing New York case law, the tolling provision in § 207 is almost never available to a plaintiff, even to a plaintiff who can show that he unsuccessfully attempted to serve a hard-to-locate defendant out of state.” That is why I made the earlier statement that I did concerning tolling for out-of-state defendants; I oversimplified it a bit rather than a long explanation of why tolling generally doesn't work in civil cases but for pretty much all practical purposes I think my shortened statement of it works.

  10. #10
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    Default Re: North Carolina and New York Statute of Limitations

    Quote Quoting adjusterjack
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    You've got more to worry about than the SOL. There's venue.

    NY allows a lawsuit to be filed in the county where one of the parties resides. That includes a corporation.

    See:

    http://law.justia.com/codes/new-york...article-5/503/

    The utility company could sue you in NY, get a judgment, domesticate (transfer) it to NC and enforce it there.
    Wouldn't 811 provision of the Fair Debt Collection Practices Act limit the debt collectors to having to sue me in North Carolina? As there is no physical property attached to the bill. Also under CPLR 306-b wouldn't they be forced to serve me in North Carolina. As I no longer reside in NY.

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