Signed Acknowledgement of Debt Revives Time-Barred Claim

On November 25, 2020, the Second Department issued a decision in U.S. Bank, N.A. v. Mandracchia, 2020 NY Slip Op. 07118, holding that a signed acknowledgement of a debt revives a time-barred claim, explaining:

On the statute of limitations issue, the mortgage debt was accelerated in 2007, which started the statute of limitations running on the entire debt. However, in 2009, John acknowledged the debt and made payments, which, under the circumstances of this case, extended the statute of limitations. General Obligations Law § 17-101 effectively revives a time-barred claim when the debtor has signed a writing which validly acknowledges the debt. Since the instant mortgage foreclosure action was commenced within six years of the acknowledgment, it is not time-barred.

(Internal quotations and citations omitted).

It is not unusual for the statute of limitations to be an issue in complex commercial litigation. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions regarding whether claims are barred by the statute of limitations.