Issue: What is the statute of limitations applicable to a bank action in an action to reform their loan contract?
| Area of Law: | Banking & Finance Law, Litigation & Procedure |
| Keywords: | Statute of limitations; Claim for reformation; Contract |
| Jurisdiction: | Federal, Indiana |
| Cited Cases: | 553 N.W.2d 760; 942 F. Supp. 2d 279; 289 P.3d 1066; 27 N.E. 200 |
| Cited Statutes: | Indiana Code § 34-11-2-11, § 34-11-1-2(a) |
| Date: | 09/01/2014 |
To determine whether a bank’s claim for reformation is barred by the statute of limitations and determine when the statute of limitations began to run, the following authorities are instructive:
- Indiana Code § 34-11-2-11 (2014).
“All actions upon contracts in writing other than those for the payment of money . . . must be commenced within ten (10) years after the cause of action accrues.”
- City of East Chicago v. East Chicago Second Century, Inc., 878 N.E.2d 358, 378 n.19 (Ind. Ct. App. 2007), rev’d on other grounds, 908 N.E.2d 611 (Ind. 2009).
Section 34-11-2-11 “does not apply to [a claim for reformation], as an action for reformation is not an action at law brought upon the contract. Rather, it is an action for the equitable remedy of reformation of the contract.”
- Trip-Tenn, Inc. v. Schultz, 656 N.W.2d 747, 751 (S.D. 2003).
Claim for reformation of a contract is not a claim upon the contract for statute of limitations purposes.
- Diocese of Bismarck Trust v. Ramada, Inc., 553 N.W.2d 760, 766 (N.D. 1996).
An action to reform a deed is an action “upon a contract.”
- Indiana Code § 34-11-1-2(a) (2014).
“A cause of action that: (1) arises on or after September 1, 1982; and (2) is not limited by any other statute; must be brought within ten (10) years.”
- Bryant v. Swetland, 27 […]