On April 5, 2019, the Texas Supreme Court made an important ruling in a case that has the potential to impact many personal injury claims going forward. Before the court was the question of whether a case involving a civil conspiracy was subject to the statute of limitations for the tort that underlined the conspiracy.
The case was Agar v Electro Circuits Int’l. The court had to first determine whether civil conspiracy fell under a theory of vicarious liability or an independent tort, a matter that was not clear under existing case law. The court determined that it was not an independent tort and was a theory of vicarious liability. The court used this determination to find that a civil conspiracy does not have a separate statute of limitations and is subject to the same statute of limitations as the underlying court.
This decision officially rejected the position that every Texas intermediate court of appeals that had confronted this issue had concluded up until this point in time, which involved 12 different courts. These courts had all concluded that a conspiracy was subject by a two-year statute of limitations. The Texas Supreme Court made clear that it knew that it was not agreeing with all of these previous decisions and that it had the duty to correct a long history of mistaken application. The court also rejected a separate “last overt act” of conspiracy to extend the statute of limitations.
The Law in Other Jurisdictions
The recent decision conforms to the approach by the majority of other jurisdictions that have confronted the same issue. The Texas Supreme Court noted in its decision that the highest court in four other states have similarly and previously held that civil conspiracy is a theory of derivative liability that has the same statute of limitations period as the tort that underlines the conspiracy. It also noted that the intermediate courts of appeals of at least six other states have held similarly.
Regarding whether states extend the statute of limitations based on a last overt act, the law in other jurisdictions varies. Some states accept this approach, which causes the statute of limitations to begin until the last overt act of the conspiracy occurs. Texas’ case law on this aspect has been limited, but the Texas supreme Court said that its decision aligned with jurisdictions that consider each tort that is part of the conspiracy. Each of these torts have their own statutes of limitations. They begin when the act is committed and the victim is injured.
What Does the Case Mean for Future Claims?
The case can potentially limit the claims that personal injury victims may be able to assert. The decision may result in a shorter statute of limitations than victims previously had to file their claim. In light of the new decision, accident victims should seek assistance immediately after being injured in order to preserve their rights.
