When a plaintiff is a non-resident of New York and the action arose in another state, which statute of limitations applies?

When a plaintiff is a non-resident of New York and the action arose in another state, which statute of limitations applies?

• A. The longer statute of limitations of New York or the other state.
• B. The shorter statute of limitations between New York and the other state.
• C. The NY statute of limitations only.
• D. The other state's statute of limitations only.

Answer: (B)

The rule being tested is the borrowing statute rule. When a plaintiff files in New York for a claim that arose in another state, the court applies the shorter of New York’s statute of limitations and the statute of limitations of the state where the claim arose. This prevents a plaintiff from exploiting a longer period in the foreign state, while ensuring the action isn’t barred later than the applicable shorter deadline somewhere. For example, if New York’s statute of limitations is three years and the other state's is six years, the claim must be brought within three years of accrual. The plaintiff being a non-resident doesn’t change this result—the key factor is where the cause of action arose. If the action had arisen in New York, New York’s own statute would govern. Thus, the correct approach is to use the shorter of the two periods.

The rule being tested is the borrowing statute rule. When a plaintiff files in New York for a claim that arose in another state, the court applies the shorter of New York’s statute of limitations and the statute of limitations of the state where the claim arose. This prevents a plaintiff from exploiting a longer period in the foreign state, while ensuring the action isn’t barred later than the applicable shorter deadline somewhere.

For example, if New York’s statute of limitations is three years and the other state's is six years, the claim must be brought within three years of accrual. The plaintiff being a non-resident doesn’t change this result—the key factor is where the cause of action arose. If the action had arisen in New York, New York’s own statute would govern. Thus, the correct approach is to use the shorter of the two periods.