What is a Statute of Limitations?

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What is a Statute of Limitations?

The statute of limitations is a law which sets forth the time period in which a lawsuit must be commenced. The limitations period begins to run when a cause of action is said to accrue. Meaning that the aggrieved party becomes aware of the facts that have given rise to that cause of action.

What happens after the Statute of Limitations runs out?

If a party fails to commence a lawsuit within the limitations period, that party will be prohibited from bringing a lawsuit based on those facts. In that instance, we say that the party is time barred from bringing a lawsuit. In Maryland, the default limitations period is three years. This is found in within Maryland Courts and Judicial Proceedings Section 1-501. Although, there may be different limitations periods based on the type of lawsuit at issue. For example, an action on a note has a 6-year statutory period.

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