Lawyer Beats Virginia Statute Of Limitations Defense For Investor
Investor Client purchased a long dormant note secured by 2nd deed of trust on Virginia property. After the senior lender foreclosed, Investor sought to obtain a personal judgment against the borrower. The borrower’s attorney filed a plea in bar asserting that the suit was filed after expiration of a five year statute of limitations applicable to breach of contract lawsuits. Virginia creditor lawyer Ronald Drescher argued instead that Virginia has a special statute of limitations applicable to promissory notes that was six years. Borrower’s attorney attempted to convince the court that the longer statute of limitations did not apply to notes secured by residential real estate.
In the Circuit Court of Virginia for Loudon County the judge agreed with Drescher that the longer statute of limitations did apply and allowed the lawsuit to continue.
Special note: in many states there is a particularly long statute of limitations for instruments signed under seal (such as when the word “(SEAL)” appears after a signature line. The time limit for filing these lawsuits may extend as long as ten or twelve years (such as in Maryland). Caveat: the mere inclusion of the word “SEAL” after a signature line may not be sufficient to invoke the longer limitations period. The parties need to actually intend to execute their instrument under seal.
A Track Record of Success in Maryland, Virginia, Pennsylvania, & Delaware Commercial Litigation & Bankruptcy Cases
DISCLAIMER: Please note that every case is different and these verdicts and settlements, while accurate, do not represent what we may obtain for you in your case.
