Demanding Standard to Extend Statute of Limitations Based Upon “Equitable Estoppel”

Throughout this Blog over the years, I have explained the many legal benefits of alleging fraudulent conduct in connection with formulating and articulating causes of action and claims for relief. For example, alleging significant fraudulent conduct has a special impact on the statute of limitations, not only for the cause of action of actual fraud, but for other claims as well. See, e.g., Actual Fraud Extends Statute of Limitations for Breach of Fiduciary Duty Claims.

Equitable Estoppel

One of these benefits is known as “equitable estoppel.” If a party is duped into refraining from instituting a lawsuit based upon fraudulent conduct of the alleged wrongdoer, thereby letting the applicable statute of limitations lapse before bringing suit, “equitable estoppel” will prevent the wrongdoer from taking advantage of the statutory deadline for suing.

The courts are quite strict, however, in assessing whether the elements of equitable estoppel have been met. Parties often try to avoid their own unjustified delay in bringing suit by claiming the defendant was the culprit through some sort of fraudulent or deceptive conduct. But courts hone in on what the defendant is alleged to have done and how that in fact may have caused the plaintiff to refrain from suing earlier.

Read the full blog here.