Bill Shortens Lawsuit Period for Written Contracts

The Ohio House of Representatives today passed Senate Bill 224, legislation that generally shortens the period of limitations for actions upon a written agreement, contract or promise.

Current Ohio law allows a party to file a lawsuit for a breach of written contract within 15 years after the cause of action. Under SB 224, the period of limitation would be reduced to eight years, eliminating Ohio’s distinction as being tied for the longest period in the nation.

“This law has dated back to the days of early statehood, when businesses and consumers moved at a much slower pace,” Speaker William G. Batchelder (R-Medina) said. “Obviously the speed at which industry moves has increased rapidly since then, and SB 224 brings Ohio more in line with today’s fast-paced world.”

In 40 states, as well as the District of Columbia, the limitation period in which to file a lawsuit for breach of written contract is six years or fewer.

SB 224 passed the House unanimously and will now be sent to Governor Kasich for his signature.