What is the statute of limitations on a promissory note in Michigan?

KLAW Blog · April 2

So They Made a Promise…

The statute of limitations on a promissory note in Michigan is six years [MCL 600.5813]. This falls under the general limitations period for breach of contract claims not otherwise specified in the statutes as stated in Michigan Compiled Laws section 600.5813(9) [MCL 600.5813].

600.5813 Other personal actions.

Sec. 5813.

All other personal actions shall be commenced within the period of 6 years after the claims accrue and not afterwards unless a different period is stated in the statutes.

See All Here

REVISED JUDICATURE ACT OF 1961 (EXCERPT)
Act 236 of 1961 Chapter 58
LIMITATION OF ACTIONS

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

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Here’s a breakdown of the relevant law:

MCL 600.5813: This statute outlines the time limits for filing various lawsuits in Michigan. Subsection (9) specifically addresses “all other personal actions” which includes breach of contract claims related to promissory notes.
Six-Year Limit: For a promissory note, the timeframe to sue for non-payment is generally six years from the date of the breach of contract. The breach of contract typically occurs when the maker of the note defaults on a payment.

Important Considerations:

Partial Payments: If a partial payment is made on the promissory note after it becomes due, it can restart the running of the statute of limitations. This means the clock on the six-year period starts ticking again from the date of the last payment [Yeiter v. Knights of St. Casimir Aid Soc’y, 607 N.W.2d 68 (Mich. 2000)].

It’s important to note that this is a general overview, and the specific details of your situation might influence the statute of limitations.

Consulting with an attorney specializing in contract law is highly recommended for a more nuanced understanding of your case.

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The Law

750.553 Occupancy of building without consent; violation; penalty; exception.

Sec. 553.

(1) Except as provided in subsection (2), an individual who occupies a building that is a single-family dwelling or 1 or both units in a building that is a 2-family dwelling and has not, at any time during that period of occupancy, occupied the property with the owner’s consent for an agreed-upon consideration is guilty of a crime as follows:

(a) For a first offense, a misdemeanor punishable by a fine of not more than $5,000.00 per dwelling unit occupied or imprisonment for not more than 180 days, or both.

(b) For a second or subsequent offense, a felony punishable by a fine of not more than $10,000.00 per dwelling unit occupied or imprisonment for not more than 2 years, or both.

(2) Subsection (1) does not apply to a guest or a family member of the owner of the dwelling or of a tenant.

Real Questions from Real Calls

Question: I made a pinky promise in Michigan with someone to sell me their car and they backed out. What can I do?

A pinky promise, unfortunately, isn’t a legally binding contract in Michigan (or any other state in the US). Car sales however, are required to have a written bill of sale.

Here’s what you can do:

See if there was a written agreement: If you have any written communication about the sale, like a text message or email agreeing on a price, that could be helpful. It wouldn’t be a full contract, but it might show the seller’s intent.
Consider small claims court: If you have some evidence of the agreement (written communication) and the amount involved is within the small claims court limit in Michigan (which is currently $6,500) you could sue in small claims court. However, even with some evidence, winning a case based on a verbal agreement can be difficult.
Move on: This might not be the answer you want to hear, but unless you have a written agreement, it may be best to walk away and look for another car.

Here are some resources that might be helpful:

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