Statutes of Limitation

This is the second in a series of articles on Mississippi statutes of limitation. You can read the first article here .

The phrase “open account” describes a business relationship where Party A purchases something from Party B on an ongoing basis.

A record of these purchases is kept by Party B, and from time to time, Party A makes payments. The amount owed by Party A at any given time will usually fluctuate.

If Party A stops paying, Party B has three years in which to file suit. The three years begins to run from the time of each purchase.

Mississippi law creates two exceptions to the three-year statute of limitation on open accounts.

The first exception applies when the parties have a “mutual account.” A “mutual account” is between merchants or traders who are each buying from the other. In that situation, the statute begins to run from the date of the last transaction.

The second exception is for transactions covered by the Uniform Commercial Code. The Code applies to, among other things, sales of most goods.

This second exception is, therefore, very significant. Most open accounts involve the purchase of “goods” as defined in the Code.

A suit on an unwritten contract (whether express or implied) must be commenced within three years after the cause of action accrued ( i.e. , came into existence).

There is an exception to this requirement. A lawsuit based on an unwritten contract of employment must be filed within one year after the cause of action accrued.

Some criminal statutes include provisions allowing the victim to recover money from the perpetrator. Any claim to recover money under the statute must be filed within one year after the criminal offense was committed.

If you believe you have a claim, do not let the statute of limitation run. Contact the Panter Law Firm for a consultation. 601-607-3156.

Panter Law Firm, PLLC, 7736 Old Canton Road, Suite B, Madison, MS 39110.

www.craigpanterlaw.com

Craig Painter

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