Issue

Statute of limitation—plain language—ability of parties to shorten the limitation period by contract

Summary

In a case brought under the Unfair and Deceptive Trade Practices Act (UDTPA)–arising from defendant's failure to timely remediate damage from a water heater leak, resulting in plaintiffs' home being demolished due to mold–a term of the contract between the parties limiting plaintiffs' right to seek damages from defendant to one year controlled over the UDTPA's four-year statute of limitation. While statutes of limitation establish the maximum amount of time that can elapse between the accrual of a claim and the filing of that claim, because the legislature chose not to restrict parties' ability to contractually shorten the limitation period for UDTPA claims, the general rule of freedom of contract applied. Accordingly, where the Court of Appeals erred in determining that the contractual limitation was unenforceable, its decision was reversed.

Summary from the North Carolina Reports digest (official subject index). Read the opinion →