August 19, 2010

The statute of limitations for litigating an alleged breach of a collective bargaining agreement is six years

The statute of limitations for litigating an alleged breach of a collective bargaining agreement is six years
Lagreca v City of Niagara Falls, 244 AD2d 862, leave to appeal denied, 91 NY2d 813.

The Lagreca decision points out that a law suit for an alleged breach of a collective bargaining agreement must be brought within six years of the act or omission claimed to constitute the breach.

When does the statute of limitations for the alleged breach of contract begin to run? On the date when the alleged breach occurred.

Bernadette J. Lagreca, the widow of a deceased city of Niagara Falls employee, sued the city because it had terminated her late husband’s life insurance policy in June 1988.

Lagreca contended that the cancellation of the policy violated the collective bargaining agreement then in effect. Lagreca, however, did not file her lawsuit until seven years after the insurance had been terminated. The court said that statute of limitation for breach of contract was six-years and had expired by the time the suit was filed.

The appellate division affirmed the Supreme Court’s dismissal of Lagreca’s petition, commenting that “the cause of action for breach of contract occurred at the time of the breach when the [city] terminated life insurance coverage of [Lagreca deceased husband] ... allegedly in violation of the collective bargaining agreement.”