HKS Architects Inc. v. MSM Enterprises LTD
HKS Architects Inc. v. MSM Enterprises LTD, 2021 UT App 70 (Orme, J.)
Statute of Limitations
HKS did work for Company over the period of several months, but Company did not pay the vast majority of HKS’s invoices. HKS eventually sued Company, got a judgment of nearly $200,000, but could not collect on the judgment because Company was judgment-proof. HKS then filed a complaint against REDA (and its members), an entity that acted as Company’s agent throughout Company’s interactions with HKS. REDA sought to dismiss the complaint because it was barred by the statute of limitations. The district court dismissed the complaint. The Utah Court of Appeals affirmed, holding:
- REDA’s actions were not such that a reasonable plaintiff would not have discovered the facts underlying the claims earlier and within the window of the statute of limitations. HKS did not exercise reasonable diligence in light of REDA’s and Company’s behavior.