Fourth Department – Statute of Limitations: Niagara University v. The Hanover Insurance Company

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Appellate Division, Fourth Department – Statute of Limitations – Accrual

Niagara University v. The Hanover Insurance Company

CA 14-01230

Appealed from Supreme Court, Niagara County

Background: The defendant issued a performance bond on behalf of a construction company in connection with a building project undertaken by the plaintiffs. In 2006, the construction company was to install windows. The plaintiff commenced an action commenced an action to recover on the performance bond in 2010. The terms of the performance bond limited the time in which the plaintiffs would commence an action to within two years after the work ceased. The plaintiffs appealed from the dismissal of their complaint.

Ruling: The Appellate Division reversed. The court held that while the defendant met its burden demonstrating that the action was time-barred, the plaintiff raised an issue of fact concerning the date on which the construction company actually ceased working on the property.

James W. Gresens of Duke, Holzman, Potiadis & Gresens for the plaitniffs-appellants; Eric A. Bloom of Damon & Morey for the defendant-respondent