Litigation

Case Dismissed Because Statute of Limitations Had Run

By H. William Allen et al.

The Arkansas Court of Appeals affirmed dismissal in Bibbs v. Community Bank, No. 07-808 (3/5/08).

The plaintiffs defaulted on a loan to Community Bank. The bank sued for foreclosure in 2003, and the plaintiffs filed for bankruptcy. In 2005, they filed this action claiming the bank's misconduct forced them into bankruptcy. In 2007, the bank moved for summary judgment, arguing that only the bankruptcy trustee could have standing. The plaintiffs amended the complaint to add the trustee, but the trial court dismissed the case because the statute of limitations had run.

The court of appeals affirmed because the relate back doctrine could not apply in this case. Because the plaintiffs did not have standing, the original complaint was void. The amended complaint had nothing to relate back to, and the statute of limitations had run.

Full post as published by Arkansas Business Litigation Blog on March 07, 2008 (boomark / email).