Chapter 17-4 Four-Year Statute of Limitations

• Jurisdiction: United States

17-4 Four-Year Statute of Limitations

The Texas Civil Practice & Remedies Code applies a four-year limitations period to the following causes of action:²¹

• Specific performance of a contract for the conveyance of real property
• Penalty or damages on the penal clause of a bond to convey real property
• Contract for a debt
• Fraud
• Breach of fiduciary duty
• Suit on the bond of an executor, administrator or guardian (four years from the death, resignation, removal or discharge)
• Suit against partner for settlement of partnership accounts
• Suit on an open or stated account or a mutual and current account concerning the trade of merchandise between merchants or their agents.

17-4:1 The Residual Four-Year Limitations Period

Section 16.051 of the Texas Civil Practice & Remedies Code provides a residual limitations period of four years for "every action for which there is no express limitations period." Actions that fall within the four-year residual period include:

• Action to reform a deed²²
• Action to enforce partnership's debt against individual partners²³
• Suit to set aside a default judgment²⁴
• Suit for recession of a written instrument on the grounds of fraud.²⁵

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Notes:

^[21] Tex. Civ. Prac. & Rem. Code Ann. § 16.004.

^[22] Brown v. Havard, 593 S.W.2d 939, 943 (Tex. 1980); Trahan v. Mettlen, 428 S.W.3d 905, 909 (Tex. App.—Texarkana 2014, no pet.) (applying residual four-year period to cause of action for reformation of deed to determine if mineral interests conveyed).

^[23] American Star Energy and Minerals Corp. v. Stowers, 405 S.W.3d 905, 910 (Tex. App.— Amarillo 2013, pet. granted).

^[24] Klemm v. Schroeder, 204 S.W.2d 675, 676-7 (Tex. Civ. App.—1947, no writ).

^[25] Smith v. Am. Econ. Ins. Co., 794 S.W.2d 574, 577 (Tex. App.—Fort Worth 1990, writ denied); Johnston v. Barnes, 717 S.W.2d 164, 165-66 (Tex. App.—Houston [14th Dist.] 1986, no writ) (applying four-year statute to action to set aside a settlement agreement on grounds of fraud); Gwinn v. Associated Empr's Lloyds, 280 S.W.2d 624 (Tex. Civ. App.—Fort Worth 1955, writ ref'd n.r.e.).