Proposed Ohio Bill Seeking To Shorten Statute Of Limitations Awaits Governor's Signature

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A bill recently passed by the Ohio General Assembly yet again shortens the period of limitations for breach of contract claims. While S.B. 13’s changes to the statute of limitations for contract claims may have legal ramifications for some, it remains of the utmost importance to know if a contract contains provisions already limiting claim periods, which is almost always the case in construction contracts.

Bill Summary:

Section 2305.06 of the Ohio Revised Code governs the statute of limitations for actions for breach of written contracts. When Section 2305.06 was originally enacted in 1993, the statute of limitations was fifteen years. In 2012, the General Assembly shortened that timeframe from fifteen years to eight. Now, the General Assembly has done it again. Ohio State Senator George Lange introduced S.B. 13 on February 12 with the aim of further reducing the statute of limitations for breaches of a written contract from eight years to six. The bill as passed also amends Ohio Revised Code Section 2305.07 to shorten the statute of limitations period for breach of non-written contracts from six years to four years.

S.B. 13 was unanimously approved by the Ohio Senate on February 3rd where it received bipartisan support. The bill was also unanimously passed by the Ohio House on February 25th. Now it awaits Governor DeWine’s signature.

Bottom Line:

While S.B. 13 amends the statute of limitations for contract claims in general, it is important for construction project stakeholders to consider provisions within their own contracts that limit contract claims periods. Nearly every construction contract will include provisions shortening the time frame in which a party may bring a claim (oftentimes to just days). These provisions provide a period much shorter than the enumerated statute of limitations. It is important to remember that, regardless of whatever appears in the Ohio Revised Code, parties must comply with the claims provisions provided in their contracts. Hahn Loeser’s Construction Team is following S.B. 13 and will provide relevant updates as the bill gets signed into law.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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