In Virginia, the statute of limitations for fraud is two years from the time when a reasonable person should have discovered it. But when exactly the statute begins to run depends on whether there were multiple occurrences.
“A cause of action for breach of a contract or duty accrues on the date of breach. Va. Code Ann. §8.01-230. Virginia recognizes that multiple breaches or occurrences can give rise to separate causes of action.” Park v. Alcon Surgical, Inc., 1993 U.S. App. LEXIS 8419, * 9 (4th Cir. 1993).
“Adopting [Plaintiff’s] contention,” the Virginia Supreme Court observed, “the trial court ruled that ‘each [tortious] discharge was a separate actionable event’ for which [Plaintiff] was entitled to seek recovery ‘during the 5 years preceding the filing of suit’. We agree.” Hampton Roads Sanitation Dist. v. McDonnell, 234 Va. 235, 239 (1987)(repeated trespass). “
If the wrongful act is of a permanent nature and one that produces all the damage which can ever result from it, then the entire damages must be recovered in one action, and the statute of limitations on fraud begins to run from the date of the wrongful act. Conversely, when wrongful acts are not continuous but occur only at intervals, each occurrence inflicts a new injury and gives rise to a new and separate cause of action. In the latter situation, a plaintiff’s right of recovery… is limited by the statute of the damages sustained during the five years preceding the institution of the suit. Id. (emphasis added)( brackets omitted).
The Virginia Supreme Court recently embraced Hampton Roads in Am. Physical Therapy Ass’n v. Fed’n of State Bds. of Physical Therapy [“APTA”], 271 Va. 481, 484-485 (2006). In reversing and remanding a trial court that incorrectly had applied a single unitary statute of limitation period to discrete occurrences.
The Virginia Supreme Court in APTA reiterated “if the wrongful acts are not continuous and ‘occur only at intervals, each occurrence inflicts a new injury and gives rise to a new and separate cause of action’.” Id. at 484.
When considering the statute of limitations on fraud, it’s important to understand that the plaintiff may only recover damages within the time frame defined by law. This is often tied to when the fraud was discovered or should have been discovered.
“Since the statute of limitations is an affirmative defense, [Defendant] has the burden of proving facts that bar [Plaintiff’s] claim.” Park, supra, 1993 U.S. App. LEXIS 8419, * 11. When there is conflict over when a plaintiff should have discovered that the defendant committed fraud, the defensive pleading must be denied. See, Bd. of Dirs. of the Lessner Pointe Condominium on the Chesapeake Bay Ass’n, Inc. v. Harbour Point Bldg. Corp., 2002 Va. Cir. LEXIS 422, * 27-28 (Virginia Beach Jun. 18, 2002).This principle also applies in cases involving the Virginia breach of contract statute of limitations.
This reflects well-established legal recognitions in Virginia courts regarding the burden of proof and statute of limitations defenses.
FAQs
1. What is the statute of limitations for fraud?
The statute of limitations for fraud in Virginia is two years from the time when a reasonable person should have discovered the fraud. This period starts once the fraud is or should have been detected, making it crucial to act promptly to protect your rights.
2. What is the statute of limitations for breach of a written contract in Virginia?
In Virginia, the statute of limitations for breach of written contract is five years from the date the breach occurred. This means that the party affected by the breach has five years to file a lawsuit to seek remedies for the violation of the contract.
3. What is the statute of limitations on insurance fraud?
The statute of limitations on insurance fraud in Virginia is typically two years, starting from the time the fraud is discovered or should have been discovered. This ensures that victims of insurance fraud can pursue legal action within a reasonable time frame to address the fraudulent activity.