By Marsha D. Makel, Esq.
On June 26, 2012, Ohio Governor John Kasich signed into law Senate Bill 224 which shortens the period of limitations for actions on a contract in writing. Previously in Ohio, the statute of limitations for “an action upon a specialty or an agreement, contract, or promise in writing” was fifteen years.
There were previous proposals to reduce the statute of limitations to six years under Ohio Revised Code 2305.06. However, after opposition by many, including the Ohio Creditors’ Attorney Association, for which the firm is a part and participates, the statute of limitations was reduced to eight years. Below is Senate Bill 224 as signed by the Governor:
Be it enacted by the General Assembly of the State of Ohio:
Section 1. That section 2305.06 of the Revised Code be amended to read as follows:
Sec. 2305.06. Except as provided in sections 126.301 and 1302.98 of the Revised Code, an action upon a specialty or an agreement, contract, or promise in writing shall be brought within fifteen eight years after the cause thereof of action accrued.
Section 2. That existing section 2305.06 of the Revised Code is hereby repealed.
Section 3. Subject to Section 4 of this act, section 2305.06 of the Revised Code, as amended by this act, applies to actions in which the cause of action accrues on or after the effective date of this act.
Section 4. For causes of action that are governed by section 2305.06 of the Revised Code and accrued prior to the effective date of this act, the period of limitations shall be eight years from the effective date of this act or the expiration of the period of limitations in effect prior to the effective date of this act, whichever occurs first.
Senate Bill 224 will be effective 90 days after June 26, 2012. However, please note that this change to Ohio Revised Code 2305.06 only affects contracts in writing under this section. The statute of limitations for promissory notes still remains six years pursuant to Ohio Revised Code 1303.16 and four years for contracts for sales of goods under Ohio Revised Code 1302.98.
If you have any questions on this information, please contact Ms. Marsha D. Makel, Esq. Marsha is an associate in the Compliance Department of the Columbus office of Weltman, Weinberg & Reis Co., L.P.A. and can be reached at (614) 857-4413 or via e-mail at mmakel@weltman.com.
That Credit Union Blog 