Friday, February 15, 2013

Arbitration Does Not Toll Statute of Limitations

In Shailendra Kumar, P.A. v. Dhanda, 43 A.3d 1029 (Md. 2012), plaintiff, a practice group, brought suit against defendant, a physician, for breach of a partnership agreement.  The suit was initiated more than three years after the events giving rise to the breach, but less than three years after mandatory, non-binding arbitration which was required prior to the filing of suit under the partnership agreement.  Affirming the trial court and the Court of Special Appeals, both of which had dismissed plaintiff’s breach of contract claim as time-barred under the three-year statute of limitations, the Court of Appeals found that, while arbitration was a condition precedent to the suit, it neither tolled the statute of limitations nor delayed the accrual of the underlying breach of contract claims.

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