Civil Actions - Specialties - Statute of Limitations
If enacted, SB156 will affect statutes under the Maryland Courts and Judicial Proceedings Article. It specifically aims to amend Section 5-102, which governs how long individuals have to initiate certain legal actions. With this bill, there will be a unified timeframe for filing actions concerning judgments and other related financial specialties, which proponents argue will encourage prompt resolution of legal disputes and provide more certainty in contractual obligations. Additionally, the bill seeks to clarify that the statute applies to both judgment creditors and debtors, ensuring fairness in applying these time limits.
Senate Bill 156, titled 'Civil Actions – Specialties – Statute of Limitations', seeks to amend existing laws concerning the statute of limitations for various civil actions related to specialties. The bill expands the scope of actions that must be filed within a defined time period, specifically setting a 12-year limit from the date the cause of action accrues or from the death of the last principal debtor or creditor, whichever occurs first. This legislative change is intended to provide clearer guidelines for individuals and entities engaged in civil actions linked to financial instruments like promissory notes and contracts under seal.
A notable point of contention surrounding SB156 is its intention to override the prior ruling of the Court of Appeals in the case of Cain v. Midland Funding, LLC. The previous decision upheld that the 12-year statute of limitations was applicable only to judgment creditors and not to debtors. Critics may argue that this bill shifts the balance of power towards creditors, potentially disadvantaging debtors by imposing longer pressure under the threat of legal action. Therefore, stakeholders are divided on whether this legislative initiative will enhance justice in civil actions or lead to unintended consequences that inadequately protect debtors.