HOUSE BILL REPORT

SSB 5213

BYSenate Committee on Law & Justice (originally sponsored by Senators Pullen, Moore, Madsen, Nelson, McCaslin, Bluechel, Thorsness and Newhouse)

Extending the statute of limitations on written charge accounts.

House Committe on Judiciary

Majority Report:  Do pass.  (16)

      Signed by Representatives Crane, Vice Chair; Padden, Ranking Republican Member, Belcher, Brough, Dellwo, Hargrove, Inslee, P. King, R. Meyers, Moyer, H. Myers, Patrick, Scott, D. Sommers, Tate and Wineberry.

House Staff:Bill Perry (786-7123)

AS PASSED HOUSE APRIL 5, 1989

BACKGROUND:

The period of time to commence an action on contracts is limited by statute.  The statute of limitations for actions based on a written agreement is six years.  The statute of limitations for actions based on a contract which is not in writing is three years.  The statute of limitations for actions based on seduction or breach of promise is three years.

All actions not otherwise specifically provided for are subject to a two years statute of limitations.

SUMMARY:

The statute of limitations is set at six years for an account receivable incurred in the ordinary course of business.  This six-year period applies whether or not the account receivable is based on a written contract.

The three-year limitation period is eliminated for actions based on seduction and breach of promise to marry.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Harry Lloyd, Seattle-King County Inter Credit Association; Randy Durham, Washington Retail Association; Bruce Davis, Credit Association of Washington; Will George, District 10 International Credit Association; Jim Brady, Washington Collectors Association; Ben Wood, Jr., S.C.A. Credit, Inc.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The difference in the statute of limitations between written and unwritten contracts can penalize the unsophisticated small business owner who may carry an account on the business's books for several years.

House Committee - Testimony Against:      None Presented.