In a corporation in liquidation officers may be sued also for causes for which the statute of limitation passed prior to liquidation

December 19, 2019

A liquidator of a company filed a lawsuit against officers for fraud, or at least negligent conduct by taking unreasonable risk, 15 years prior to the date of filing of the claim.
The Supreme Court held that the case against the officers is not obsolete. A cause of action which is not in real estate becomes obsolete after 7 years, but a claim the statute of limitation does not begin to count until the claimant knew or should have known about the grounds thereof. When it comes to a corporation in liquidation, insofar as prior to the liquidation a relevant organ of the company, that was not involved in the tort against the corporation, has not been made known to the grounds of the claim and such could not have been discovered with proper due diligence, the statute of limitations would not begin to be counted until the date that the liquidator became aware of the grounds or should have become aware thereof. This rule applies even if under other circumstances the statute of limitations had already elapsed when the company entered into liquidation.