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You are here: Home1 / Civil Procedure2 / ALTHOUGH THE CAUSES OF ACTION WERE PLED AS “CONVERSION” AND...
Civil Procedure, Contract Law, Conversion, Partnership Law

ALTHOUGH THE CAUSES OF ACTION WERE PLED AS “CONVERSION” AND “UNJUST ENRICHMENT,” THEY STEMMED FROM ALLEGED BREACHES OF THE PARTNERSHIP AGREEMENT; THEREFORE THE SIX-YEAR BREACH-OF-CONTRACT STATUTE OF LIMITATIONS APPLIED, NOT THE THREE-YEAR TORT STATUTE OF LIMITATIONS (SECOND DEPT). ​

The Second Department determined that, although the causes of action were couched as “conversion” and “unjust enrichment,” they stemmed from the alleged breach of a partnership agreement. Therefore the six-year contract, not the three-year tort, statute of limitations applied:

… [T]he causes of action were subject to a six-year statute of limitations rather than a three-year statute of limitations. “In determining which limitations period is applicable to a given cause of action, the court must look to the substance of the allegations rather than to the characterization of those allegations by the parties” … . “[W]hen damage to property or pecuniary interests is involved, the six-year statute governs regardless of how the theory of liability is described, as long as the asserted liability had its genesis in the contractual relationship of the parties” … . Thus, “where liability is premised on a contractual relationship, the six-year statute of limitations applies” … . Fernandes v Fernandes, 2025 NY Slip Op 00848, Second Dept 2-13-25

Practice Point: Here the causes of action for conversion and unjust enrichment stemmed from alleged breaches of the partnership agreement, so the breach-of-contract, not the tort, statute of limitations applied.

 

February 13, 2025
Tags: Second Department
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https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png 0 0 Bruce Freeman https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png Bruce Freeman2025-02-13 10:29:082025-02-16 10:50:07ALTHOUGH THE CAUSES OF ACTION WERE PLED AS “CONVERSION” AND “UNJUST ENRICHMENT,” THEY STEMMED FROM ALLEGED BREACHES OF THE PARTNERSHIP AGREEMENT; THEREFORE THE SIX-YEAR BREACH-OF-CONTRACT STATUTE OF LIMITATIONS APPLIED, NOT THE THREE-YEAR TORT STATUTE OF LIMITATIONS (SECOND DEPT). ​
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