“Is It Too Late to Sue?”: The Statute of Limitations Mistake That Costs Businesses Millions

By Jesse David Eisenberg, Esq. | JDE Law Firm, PLLC

Too many business owners find out too late that their right to sue has quietly expired — not because they didn’t have a strong case, but because they waited too long.

The result? They lose the ability to collect six or even seven figures. The defendant walks away — and it’s all perfectly legal.

This post breaks down how the statute of limitations works in New York and New Jersey — and why timing can be the difference between getting paid or getting nothing.

What Is a Statute of Limitations?

A statute of limitations is a legal deadline to bring a lawsuit. Once the time runs out, your claim is barred — no matter how valid it might have been.

Courts won’t weigh the merits. They’ll simply dismiss your case.

Common Deadlines for NY & NJ Business Lawsuits

• Breach of Written Contract: 6 years (NY), 6 years (NJ)
• Breach of Oral Contract:
  – 6 years if enforcing contract terms
  – 3 years if seeking money damages under quasi-contract (NY/NJ)
• Unjust Enrichment / Quantum Meruit: 3 years (NY), 3–6 years depending on framing (NJ)
• Fraud: 6 years from the fraud or 2 years from discovery (NY/NJ)
• Account Stated: 6 years (both states)

Important: If you're suing for money owed on an oral agreement — without a written contract — courts often apply a 3-year limit under theories like unjust enrichment or quantum meruit.

If you’re unsure which deadline applies, assume the shortest time and consult a business litigation attorney immediately.

3 Costly Mistakes That Lead to Missed Deadlines

1. Waiting to collect payment — thinking “they’ll pay eventually”
2. Trying to work it out first — without documenting tolling agreements
3. Confusing the invoice date with the breach date

We’ve seen businesses delay enforcement by months or years — only to find out they’re past the cutoff and out of options.

How to Preserve Your Claim

If you're close to the limit, you can:

• File suit immediately
• Negotiate a tolling agreement (a written pause on the deadline)
• Document every interaction — emails, texts, payments

And if you're not sure when the clock started? Talk to a business litigation attorney immediately.

Act Now — Or Risk Losing Everything

If you think you’ve been wronged in business — by a vendor, partner, client, or contractor — do not wait.

Whether you're suing or defending, delay can destroy your legal position.

📞 Schedule a consult with JDE Law Firm, PLLC:
www.jdelaw.nyc | NY: 718-966-0877 | NJ: 732-490-7120

My business is to protect your business.