PJC Business

PJC 105.31

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.31 Question on Extinguishment of Cause of Action (Tex. Bus. & Com. Code § 24.010)

If you answered “Yes” to Question ______ [ 105.25 – 105.28 ], then answer the following question. Otherwise, do not answer the following question.

QUESTION ______

By what date could Paul Payne reasonably have discovered the [ transfer made/obligation incurred ] by Dean Debtor ? Answer with a date in the blank below. Answer: _______________

COMMENT

When to use. In most cases, the timeliness of a suit for fraudulent conveyance is a question of law measured from the date the transfer was made or obligation was incurred. Tex. Bus. & Com. Code §24.010. But in certain cases the Uniform Fraudu lent Transfer Act extends the deadline to a date one year after the transfer or obligation was or could reasonably have been discovered by the claimant. Tex. Bus. & Com. Code §§ 24.010(a)(1), 24.010(b)(1). PJC 105.31 submits that question when it applies. Broad-form submission. PJC 105.31 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in which it is capable of being accomplished). Tolling provisions limited. Section 24.010 is a statute of repose rather than a stat ute of limitations, so tolling statutes applicable to “limitations” do not apply. See Nathan v. Whittington , 408 S.W.3d 870, 874 (Tex. 2013) (holding TUFTA suit not saved by statute applicable to suits dismissed for lack of jurisdiction, Tex. Civ. Prac. & Rem. Code § 16.064). But section 24.010(c) tolls accrual for creditors under legal dis ability due to minority or unsound mind if the disability existed when the statutory time period starts. There is no tolling for a disability arising thereafter, and a creditor may not tack one legal disability to another.

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