Commercial Division Blog
The Law Does Not Imply Reasonable Time for Performance Where Only Obligation is Payment of Money
On June 21, 2016, the First Department issued a decision in Castlestone Management LLC v. Diamond, 2016 NY Slip Op. 04879, dismissing a breach of contract claim as time-barred, explaining:
Plaintiff argues that, because the agreement did not specify a time for performance, defendant's reimbursement payment was due, and the statute of limitations began to run, not when the settlement payment was made but within a reasonable time thereafter. However, the law does not imply a reasonable time for performance where the sole contractual obligation is to make a monetary payment. Defendant's monetary reimbursement obligation became due as soon as plaintiff's settlement payment was made.
(Internal quotations and citations omitted) (emphasis added).