Utilizing Contractual Statutes Of Limitation

Law360, New York (March 26, 2010, 3:52 PM EDT) -- Faced with the prospect of costly and time-consuming litigation, some employers have adopted a time-tested approach to managing exposure to lawsuits — a contractual statute of limitations period.

Judicial approval of this approach outside the employment context is generally positive; however, judicial approval has been uneven in the employment context, as demonstrated by the recent decision in Pellegrino v. Robert Half Int’l Inc., Case No. 06-cc-04518 (Cal. Ct. App. Jan. 29, 2010).

Historical Background

Courts long have recognized contractually abbreviated limitations periods for particular causes of...
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