Why You Need to Know If Your Construction Contracts are ‘Under Seal’

When a client wants to pursue a lawsuit or arbitration, one of the first things an attorney should do is determine whether the statute of limitations has run on the client’s claim, advise Darren Rowles and Scott Cahalan in a post for  Smith, Gambrell & Russell, LLP’s Construction Law blog.

“Many people are not aware, however, that parties to contracts, including construction contracts, may have the ability to increase the statute of limitations for a written contract by a factor of more than three hundred percent just by adding a few words to make their contracts ‘under seal.’ As a result, these people may increase their exposure to breach of contract/warranty claims without knowing they are doing so,” according to their post.

They explain that, in Georgia, for example, a written contract that is not for the sale of goods would normally have a six-year statute of limitations measured from the date of breach, But a contract signed “under seal,” has a statute of limitations of 20 years from the date of breach.

Read the article.