NMT, LLC v. C.E.W. LLC CA4/3
The issue presented by this appeal is whether the trial court erred by concluding a cause of action for declaratory relief was barred by the statute of limitations. The declaratory relief cause of action sought a declaration the parties had agreed that a ground lease and an option to extend the term of the ground lease would be assignable.
The court’s ruling was based on the conclusion that the statute of limitations for declaratory relief begins to run when a plaintiff first learns of a disagreement over contract terms. The statute of limitations on a cause of action for declaratory relief concerning the rights and obligations of the parties under a contract does not begin to run, however, until there has been an actual breach of the contract. The evidence at trial established an actual breach of contract did not occur until 2012, within the four-year limitations period for declaratory relief. We therefore reverse the judgment on the declaratory relief cause of action and reman
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