Bear Stearns Mortgage Funding Trust v. EMC Mortgage LLC, C.A. No. 7701-VCL (Del. Ch. Jan. 12, 2015)

This decision is noteworthy for its discussion of a recently passed Delaware statute that allows parties to a contract to agree to establish their own statute of limitations of not more than 20 years for filing a breach of contract claim.  See 10 Del. C. 8106(c).  This case is also noteworthy for being one of the rare creatures known as the grant of a motion for reargument under Court of Chancery Rule 59(f).

The reasons for this rare grant of such a motion, according to this opinion, are several.  First, the new statute regarding statute of limitations, Section 8106(c), became effective on August 1, 2014, before the court’s ruling on the motion to dismiss in this case.  In addition, the court determined that a case not cited by the parties and not considered by the court also should have been considered.  See Saudi Basic Industries Corp. v. Mobile Yanbu Petrochemical Co., Inc., 866 A.2d 1 (Del. 2005).

This opinion also features a useful discussion of when the presumption against retroactivity of a statute will apply.  See page 25.

The court described the somewhat circuitous borrowing statute which applies when a party seeks to take advantage of a longer Delaware statute of limitations to bring a claim that would be time-barred under the law of the jurisdiction governing the claim.

A final note of esoteric interest: an Amicus Curiae Brief was filed in this matter.  See footnote 14.