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UCC Four-Year Limitation Barred Claim Seeking Payment For Sale Of Goods

Plaintiff was an importer of electronics who sold goods to the defendant. They had a business relationship from 2003 through November 9, 2004 when the final transaction occurred. Payment was due within 60 days, no later than 1/8/05. Suit was filed 3/6/09 claiming the defendant owed $8,185,302.24. The District Court held the alleged breach of con- tract occurred no later than 1/8/05, and therefore, the suit was untimely and barred by the four-year statute of limitations of the Uniform Com- mercial Code.

The Seventh Circuit affirmed. The UCC requires that a breach of con- tract for a sale “must be commenced within four years after the cause of action has accrued.” Once the party is apprised of a breach, the statute of limitations begins to run. Plaintiff knew that defendant owed it money for goods yet failed to take any ac- tion until more than four years plac- ing the claim outside of limitations of the UCC. Apex Digital, Inc. v. Sears Roebuck & Co., 735 F.3d 962 (7th Cir. 2013). 

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About this Author

Litigation of business and commercial cases is a major focus of Heyl Royster. Our experience encompasses all aspects of commercial dispute resolution - state and federal forums, administrative proceedings, arbitration, and mediation - in almost every area of substantive business law.