Know Your Limitations | Practical Law

Know Your Limitations | Practical Law

This Legal Update addresses the role of state statutes of limitation in federal litigation.

Know Your Limitations

Practical Law Legal Update 4-551-5346 (Approx. 3 pages)

Know Your Limitations

by Practical Law Litigation
Published on 17 Dec 2013USA (National/Federal)
This Legal Update addresses the role of state statutes of limitation in federal litigation.
Even in federal court, state statutes of limitation often determine whether a plaintiff can pursue its claim.
Some federal laws that do not have their own statutes of limitation borrow the statutes of limitation for analogous state law claims (see Jones v. R.R. Donnelley & Sons. Co., 541 U.S. 369, 371, 377-80 (2004)). For example, federal courts may apply state statutes of limitation to federal statutory claims concerning civil rights, employee benefits or trademarks (Wallace v. Kato, 549 U.S. 384, 387-88 (2007); Ruppert v. Alliant Energy Cash Balance Pension Plan, 726 F.3d 936, 941 (7th Cir. 2013); DC Comics v. Towle, No. 11 CV 3934, , at *19 (C.D. Cal. Feb. 7, 2013)).
Additionally, federal courts normally apply state statutes of limitation when parties assert state law claims under diversity jurisdiction or supplemental jurisdiction (Guaranty Trust Co. of NY v. York, 326 U.S. 99, 107-12 (1945); Mondragon v. Camping, No. 12 CV 02573, , at *2 (D. Colo. Oct. 11, 2013)).
When applying state statutes of limitation, federal courts use the forum state's choice of law rules, as they do for other state law issues. This can result in the application of another state's law or different states' statutes of limitation governing different claims in the same action. (See, for example, Polkampally v. Countrywide Home Loans Inc., No. 13 CV 174, , at *2-3 (D.N.J. Nov. 6, 2013).)
Both plaintiffs and defendants in federal court must, therefore, familiarize themselves with the potentially applicable state statutes of limitation. A plaintiff's failure to comply with the state statute of limitation may prevent it from vindicating its rights. A court ruling that a claim is time-barred is a dismissal on the merits, just like a ruling that the plaintiff failed to state a claim or failed to prove liability (Plaut v. Spendthrift Farm, Inc., 514 U.S. 211, 228 (1995)).
For help in determining state statutes of limitation, attorneys should consult Practical Law's Statutes of Limitation: State Q&A Tool. The tool enables users to review and compare state statutes of limitation and accrual rules for over 20 common causes of action.