FINAL BILL REPORT

SSB 5213

                              C 38 L 89

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.

Senate Committee on Law & Justice

House Committe on Judiciary

SYNOPSIS AS ENACTED

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. 

Persons engaged in many commercial businesses oftentimes do not enter into a written contract with customers.  It is suggested that the statute of limitations should be extended to six years for all actions based on an account receivable.

SUMMARY:

The statute of limitations is extended to six years for contracts that are based on an account receivable incurred in the ordinary course of business.

VOTES ON FINAL PASSAGE:

     Senate   30   17

     House 95  1

EFFECTIVE:July 23, 1989