Statutes of Limitation - California

California - Statutes of Limitation

2 Years

Open Acct.:
No writing
Oral Contract;

§ 339.
Within two years:
1.
An action upon a contract, obligation or liability not founded upon an instrument of writing, except as provided in Section 2725 of the Commercial Code or subdivision 2 of Section 337 of this code;

4 Years

Open Acct.: Reduced to writing-
Written Contract: §337

§337.
Within four years:
1. An action upon any contract, obligation or liability founded upon an instrument in writing, except as provided in Section 336a of this code;
2. An action to recover
(1) upon a book account whether consisting of one or more entries;
(2) upon an account stated based upon an account in writing, but the acknowledgment of the account stated need not be in writing;
(3) a balance due upon a mutual, open and current account, the items of which are in writing; provided, however, that where an account stated is based upon an account of one item, the time shall begin to run from the date of said item, and where an account stated is based upon an account of more than one item, the time shall begin to run from the date of the last item.

LAST ITEM MEANS ON A CURRENT, MUTUAL AND OPEN ACCOUNT. ONCE AN ACCOUNT HAS BEEN CLOSED TO FURTHER CHARGES, ANY PAYMENTS ON THAT ACCOUNT DO NOT EXTEND THE START OF SOL

“However, if the obligation sued upon constitutes an open book account, the statute of limitations begins to run from the date of the last entry on the account. Code of Civil Procedure § 337(2). But an open book account becomes closed, and the statute of limitations begins to run, once the account creditor ceases to extend credit on the account and there is no further activity on the account other than payment being made. RNC, Inc. v. Tsegeletos (1991) 231 Cal.App.3d 967, 972.”