The Six-Year Statute of Limitations (SOL’s) Governing CFA Claims
In NJ, a six-year statute of limitations (SOL’s) generally applies, meaning a lawsuit must be filed within 6 years of when a person “knows or should have known” of the deceptive or fraudulent offense or unconscionable practice.
You may have noticed that I used the term “generally applies” when I referenced the six (6) year SOL’s. The reason for this less than precise standard is because many CFA claims often involve the sale of products regulated by the New Jersey Uniform Commercial Code (UCC). If a breach of contract or breach of warranty claim is joined together with a CFA claim in the same lawsuit, it’s likely that the four-year SOL’s set forth in N.J.S.A. 12A:2-725 applies. If the transaction involves both goods and services and includes a CFA claim, a court will examine the primary purpose of the transaction. If the transaction is primarily one for services and only incidentally for goods, the six-year statute of limitations of N.J.S.A. 2A:14-1 which covers contract cases likely applies to both the CFA and the breach of contract claim.
When fraud or fraudulent concealment is the basis for the claim, the SOL’s may be extended and deemed to have commenced when the claimant should have reasonably discovered the fraud.
The DISCUSSION ABOUT THE statute of limitations discussed above AND BELOW THIS DISCLAIMER is highly technical and at times difficult to understand. Do not rely on this general discussion of the statute of limitations IF YOU HAVE A CFA CLAIM. Rather, immediately contact an attorney to schedule a consultation to evaluate any time constraints to bringing legal action involving a consumer fraud claim.
Beware of the Contractual Provisions Restricting the Statute of Limitations
Parties (this means you) to a commercial or consumer transaction are legally permitted to enter into contracts that restrict and limit (limit means shorten) the law governing the statute of limitations. One NJ court ruled that:
” [c]ontract provisions limiting the time a party may bring suit have been held to be enforceable, if reasonable.”
The Uniform Commercial Code allows parties to agree to “reduce the SOL’s to not less than one year.”
The prerequisite to enforcement of contractual statutes of limitations appears to be agreement and reasonableness.
A statute of limitations clause is likely unreasonable if it prevents a consumer from bringing suit before the consumer might discover that they suffered a loss. Let me repeat again my advice recited above relating to the statute of limitations: Do not rely on this general discussion of the statute of limitations. Rather, immediately contact an attorney to schedule a consultation to evaluate any time constraints to bringing legal action involving a consumer fraud claim.
Fredrick P. Niemann Esq.
To discuss the statute of limitations on your CFA claim, please call Frederick P. Niemann, Esq. toll-free at (855) 376-5291 or email him fniemann@hnlawfirm.com. He welcomes your inquiries.
Consumer Fraud Act Attorney Serving These New Jersey Counties:
Atlantic County, Bergen County, Burlington County, Camden County, Cape May County, Cumberland County, Essex County,
Gloucester County, Hudson County, Hunterdon County, Mercer County, Middlesex County, Monmouth County,
Morris County, Ocean County, Passaic County, Salem County, Somerset County, Sussex County, Union County, Warren County