HB573: Statute of limitations; collection of medical debt.
Be it enacted by the General Assembly of Virginia:
1. That §§ 8.01-246 and 8.01-249 of the Code of Virginia are amended and reenacted as follows:
§ 8.01-246. Personal actions based on contracts.
A. Subject to the provisions of § 8.01-243 regarding injuries to person and property and of § 8.01-245 regarding the application of limitations to fiduciaries, and their bonds, actions founded upon a contract, other than actions on a judgment or decree, shall be brought within the following number of years next after the cause of action shall have accrued:
1. In actions or upon a recognizance, except recognizance of bail in a civil suit, within 10 years; and in actions or motions upon a recognizance of bail in a civil suit, within three years, omitting from the computation of such three years such time as the right to sue out such execution shall have been suspended by injunction, supersedeas or other process;
2. In actions on any contract that is not otherwise specified and that is in writing and signed by the party to be charged thereby, or by his agent, within five years whether such writing be under seal or not;
3. In actions by a partner against another for settlement of the partnership account or in actions upon accounts concerning the trade of merchandise between merchant and merchant, their factors, or servants, within five years from the cessation of the dealings in which they are interested together;
4. In actions upon (i) any contract that is not otherwise specified and that is in writing and not signed by the party to be charged, or by his agent, or (ii) any unwritten contract, express or implied, within three years;
5. In actions, including those brought by the Commonwealth, upon any contract under subdivision 2 or 4 for health care services that were provided by a licensed health care provider, within three years after the cause of action accrues pursuant to subdivision 10 of § 8.01-249.
Provided that as to B. In the case of any action
to which § 8.2-725 of the Uniform Commercial Code is applicable, that section
shall be controlling except that in products liability actions for injury to
person and for injury to property, other than the property subject to contract,
the limitation prescribed in § 8.01-243 shall apply.
§ 8.01-249. When cause of action shall be deemed to accrue in certain personal actions.
The cause of action in the actions herein listed shall be deemed to accrue as follows:
1. In actions for fraud or mistake, in actions for violations of the Consumer Protection Act (§ 59.1-196 et seq.) based upon any misrepresentation, deception, or fraud, and in actions for rescission of contract for undue influence, when such fraud, mistake, misrepresentation, deception, or undue influence is discovered or by the exercise of due diligence reasonably should have been discovered;
2. In actions or other proceedings for money on deposit with a bank or any person or corporation doing a banking business, when a request in writing be made therefor by check, order, or otherwise;
3. In actions for malicious prosecution or abuse of process, when the relevant criminal or civil action is terminated;
4. In actions for injury to the person resulting from exposure to asbestos or products containing asbestos, when a diagnosis of asbestosis, interstitial fibrosis, mesothelioma, or other disabling asbestos-related injury or disease is first communicated to the person or his agent by a physician. However, no such action may be brought more than two years after the death of such person. The diagnosis of a nonmalignant asbestos-related injury or disease shall not accrue an action based upon the subsequent diagnosis of a malignant asbestos-related injury or disease, and such subsequent diagnosis shall constitute a separate injury that shall accrue an action when such diagnosis is first communicated to the person or his agent by a physician;
4a. In actions for injury to the person resulting from the exposure to a substance or a combination of substances or the use of a product, when such injury is latent, other than (i) those asbestos-related injuries specified in subdivision 4 and (ii) claims against health care providers as defined in § 8.01-581.1, when the person knew or should have known of the injury and its causal connection to an injury-causing substance or product. However, no such action may be brought more than two years after the death of such person. For purposes of this subdivision, "latent" refers to injuries that remain dormant or do not develop and, therefore, are undiagnosable during the period of limitations set forth in subsection A of § 8.01-243;
5. In actions for contribution or for indemnification, when the contributee or the indemnitee has paid or discharged the obligation. A third-party claim permitted by subsection A of § 8.01-281 and the Rules of Court may be asserted before such cause of action is deemed to accrue hereunder;
6. In actions for injury to the person, whatever the theory of recovery, resulting from sexual abuse occurring during the infancy or incapacity of the person, upon the later of the removal of the disability of infancy or incapacity as provided in § 8.01-229 or when the fact of the injury and its causal connection to the sexual abuse is first communicated to the person by a licensed physician, psychologist, or clinical psychologist. As used in this subdivision, "sexual abuse" means sexual abuse as defined in subdivision 6 of § 18.2-67.10 and acts constituting rape, sodomy, object sexual penetration or sexual battery as defined in Article 7 (§ 18.2-61 et seq.) of Chapter 4 of Title 18.2;
7. In products liability actions against parties other than health care providers as defined in § 8.01-581.1 for injury to the person resulting from or arising as a result of the implantation of any prosthetic device for breast augmentation or reconstruction, when the fact of the injury and its causal connection to the implantation is first communicated to the person by a physician;
8. In actions on an open account, from the later of the last payment or last charge for goods or services rendered on the account;
9. In products liability actions against parties other than health care providers as defined in § 8.01-581.1 for injury to the person resulting from or arising as a result of the implantation of any medical device, when the person knew or should have known of the injury and its causal connection to the device;
10. In actions on a contract between a natural person and a licensed health care provider for services by such provider, 30 days after the later of (i) issuance of the initial invoice or the due date stated in such invoice to the patient or person legally responsible for payment or (ii) if the patient voluntarily enters into a payment plan with the provider, 30 days after the default date contained in such payment plan, provided that any lien perfected in writing pursuant to § 8.01-66.5 shall toll such statute of limitations during the pendency of any action for any injuries relating to such services.
2. That the provisions of this act apply only to contracts entered into on or after July 1, 2022.
Be it enacted by the General Assembly of Virginia:
1. That §§ 8.01-246 and 8.01-249 of the Code of Virginia are amended and reenacted as follows:
§ 8.01-246. Personal actions based on contracts.
A. Subject to the provisions of § 8.01-243 regarding injuries to person and property and of § 8.01-245 regarding the application of limitations to fiduciaries, and their bonds, actions founded upon a contract, other than actions on a judgment or decree, shall be brought within the following number of years next after the cause of action shall have accrued:
1. In actions or upon a recognizance, except recognizance of bail in a civil suit, within 10 years; and in actions or motions upon a recognizance of bail in a civil suit, within three years, omitting from the computation of such three years such time as the right to sue out such execution shall have been suspended by injunction, supersedeas or other process;
2. In actions on any contract that is not otherwise specified and that is in writing and signed by the party to be charged thereby, or by his agent, within five years whether such writing be under seal or not;
3. In actions by a partner against another for settlement of the partnership account or in actions upon accounts concerning the trade of merchandise between merchant and merchant, their factors, or servants, within five years from the cessation of the dealings in which they are interested together;
4. In actions upon (i) any contract that is not otherwise specified and that is in writing and not signed by the party to be charged, or by his agent, or (ii) any unwritten contract, express or implied, within three years;
5. In actions, including those brought by the Commonwealth, upon any contract under subdivision 2 or 4 for health care services that were provided by a licensed health care provider, within three years after the cause of action accrues pursuant to subdivision 10 of § 8.01-249.
Provided that as to B. In the case of any action
to which § 8.2-725 of the Uniform Commercial Code is applicable, that section
shall be controlling except that in products liability actions for injury to
person and for injury to property, other than the property subject to contract,
the limitation prescribed in § 8.01-243 shall apply.
§ 8.01-249. When cause of action shall be deemed to accrue in certain personal actions.
The cause of action in the actions herein listed shall be deemed to accrue as follows:
1. In actions for fraud or mistake, in actions for violations of the Consumer Protection Act (§ 59.1-196 et seq.) based upon any misrepresentation, deception, or fraud, and in actions for rescission of contract for undue influence, when such fraud, mistake, misrepresentation, deception, or undue influence is discovered or by the exercise of due diligence reasonably should have been discovered;
2. In actions or other proceedings for money on deposit with a bank or any person or corporation doing a banking business, when a request in writing be made therefor by check, order, or otherwise;
3. In actions for malicious prosecution or abuse of process, when the relevant criminal or civil action is terminated;
4. In actions for injury to the person resulting from exposure to asbestos or products containing asbestos, when a diagnosis of asbestosis, interstitial fibrosis, mesothelioma, or other disabling asbestos-related injury or disease is first communicated to the person or his agent by a physician. However, no such action may be brought more than two years after the death of such person. The diagnosis of a nonmalignant asbestos-related injury or disease shall not accrue an action based upon the subsequent diagnosis of a malignant asbestos-related injury or disease, and such subsequent diagnosis shall constitute a separate injury that shall accrue an action when such diagnosis is first communicated to the person or his agent by a physician;
4a. In actions for injury to the person resulting from the exposure to a substance or a combination of substances or the use of a product, when such injury is latent, other than (i) those asbestos-related injuries specified in subdivision 4 and (ii) claims against health care providers as defined in § 8.01-581.1, when the person knew or should have known of the injury and its causal connection to an injury-causing substance or product. However, no such action may be brought more than two years after the death of such person. For purposes of this subdivision, "latent" refers to injuries that remain dormant or do not develop and, therefore, are undiagnosable during the period of limitations set forth in subsection A of § 8.01-243;
5. In actions for contribution or for indemnification, when the contributee or the indemnitee has paid or discharged the obligation. A third-party claim permitted by subsection A of § 8.01-281 and the Rules of Court may be asserted before such cause of action is deemed to accrue hereunder;
6. In actions for injury to the person, whatever the theory of recovery, resulting from sexual abuse occurring during the infancy or incapacity of the person, upon the later of the removal of the disability of infancy or incapacity as provided in § 8.01-229 or when the fact of the injury and its causal connection to the sexual abuse is first communicated to the person by a licensed physician, psychologist, or clinical psychologist. As used in this subdivision, "sexual abuse" means sexual abuse as defined in subdivision 6 of § 18.2-67.10 and acts constituting rape, sodomy, object sexual penetration or sexual battery as defined in Article 7 (§ 18.2-61 et seq.) of Chapter 4 of Title 18.2;
7. In products liability actions against parties other than health care providers as defined in § 8.01-581.1 for injury to the person resulting from or arising as a result of the implantation of any prosthetic device for breast augmentation or reconstruction, when the fact of the injury and its causal connection to the implantation is first communicated to the person by a physician;
8. In actions on an open account, from the later of the last payment or last charge for goods or services rendered on the account;
9. In products liability actions against parties other than health care providers as defined in § 8.01-581.1 for injury to the person resulting from or arising as a result of the implantation of any medical device, when the person knew or should have known of the injury and its causal connection to the device;
10. In actions on a contract between a natural person and a licensed health care provider for services by such provider, 30 days after the later of (i) issuance of the initial invoice or the due date stated in such invoice to the patient or person legally responsible for payment or (ii) if the patient voluntarily enters into a payment plan with the provider, 30 days after the default date contained in such payment plan, provided that any lien perfected in writing pursuant to § 8.01-66.5 shall not toll such statute of limitations during the pendency of any action for any injuries relating to such services.
2. That the provisions of this act apply only to contracts entered into on or after July 1, 2022.
Be it enacted by the General Assembly of Virginia:
1. That § 8.01-246 of the Code of Virginia is amended and reenacted as follows:
§ 8.01-246. Personal actions based on contracts.
A. Subject to the provisions of § 8.01-243 regarding injuries to person and property and of § 8.01-245 regarding the application of limitations to fiduciaries, and their bonds, actions founded upon a contract, other than actions on a judgment or decree, shall be brought within the following number of years next after the cause of action shall have accrued:
1. In actions or upon a recognizance, except recognizance of bail in a civil suit, within 10 years; and in actions or motions upon a recognizance of bail in a civil suit, within three years, omitting from the computation of such three years such time as the right to sue out such execution shall have been suspended by injunction, supersedeas or other process;
2. In actions on any contract that is not otherwise specified and that is in writing and signed by the party to be charged thereby, or by his agent, within five years whether such writing be under seal or not;
3. In actions by a partner against another for settlement of the partnership account or in actions upon accounts concerning the trade of merchandise between merchant and merchant, their factors, or servants, within five years from the cessation of the dealings in which they are interested together;
4. In actions upon (i) any contract that is not otherwise specified and that is in writing and not signed by the party to be charged, or by his agent, or (ii) any unwritten contract, express or implied, within three years;
5. In actions, including those brought by the Commonwealth, upon any contract under subdivision 2 or 4 to collect medical debt, within three years from the original date of a health care service unless the contract with a hospital or health care provider is for a payment plan that allows for a longer period of time for the collection of debt by the hospital or health care provider. For the purposes of this subdivision, "medical debt" means a debt arising from the receipt of health care service.
Provided that as to B. In the case of any action
to which § 8.2-725 of the Uniform Commercial Code is applicable, that section
shall be controlling except that in products liability actions for injury to
person and for injury to property, other than the property subject to contract,
the limitation prescribed in § 8.01-243 shall apply.
HOUSE BILL NO. 573
Be it enacted by the General Assembly of Virginia:
1. That §§ 8.01-246, 8.01-251, and 16.1-94.1 of the Code of Virginia are amended and reenacted as follows:
§ 8.01-246. Personal actions based on contracts.
A. Subject to the provisions of § 8.01-243 regarding injuries to person and property and of § 8.01-245 regarding the application of limitations to fiduciaries, and their bonds, actions founded upon a contract, other than actions on a judgment or decree, shall be brought within the following number of years next after the cause of action shall have accrued:
1. In actions or upon a recognizance, except recognizance of bail in a civil suit, within 10 years; and in actions or motions upon a recognizance of bail in a civil suit, within three years, omitting from the computation of such three years such time as the right to sue out such execution shall have been suspended by injunction, supersedeas or other process;
2. In actions on any contract that is not otherwise specified and that is in writing and signed by the party to be charged thereby, or by his agent, within five years whether such writing be under seal or not;
3. In actions by a partner against another for settlement of the partnership account or in actions upon accounts concerning the trade of merchandise between merchant and merchant, their factors, or servants, within five years from the cessation of the dealings in which they are interested together;
4. In actions upon (i) any contract that is not otherwise specified and that is in writing and not signed by the party to be charged, or by his agent, or (ii) any unwritten contract, express or implied, within three years;
5. In actions, including those brought by the Commonwealth, upon any contract under subdivision 2 or 4 to collect medical debt, within three years. For the purposes of this subdivision, "medical debt" means a debt arising from the receipt of health care service.
Provided that as to B. In the case of any action to
which § 8.2-725 of the Uniform Commercial Code is applicable, that section
shall be controlling except that in products liability actions for injury to
person and for injury to property, other than the property subject to contract,
the limitation prescribed in § 8.01-243 shall apply.
§ 8.01-251. Limitations on enforcement of judgments.
A. No execution shall be issued and no action brought on a judgment dated prior to July 1, 2021, including a judgment in favor of the Commonwealth and a judgment rendered in another state or country, after 20 years from the date of such judgment or domestication of such judgment, unless the period is extended as provided in this section or except as provided by subsection H. No execution shall be issued and no action brought on a judgment dated on or after July 1, 2021, including a judgment in favor of the Commonwealth and a judgment rendered in another state or country, after 10 years from the date of such judgment or domestication of such judgment, unless the period is extended as provided in this section, except that no execution shall be issued and no action brought on a judgment dated on or after July 1, 2021, that was created by nonpayment of child support after 20 years from the date of such judgment or domestication of such judgment.
B. The limitation prescribed in subsection A may be extended by the recordation of a certificate in the form provided in subsection G prior to the expiration of the limitation period prescribed herein in the clerk's office in which such judgment lien is recorded and executed by either the judgment lien creditor or by his duly authorized attorney-in-fact or agent. Recordation of the certificate shall extend the limitations of the right to enforce such judgment lien for 10 years from the date of the recordation of the certificate. A judgment creditor may record one additional extension by recording another certificate in the form provided in subsection G prior to the expiration of the original 10-year extension of the limitation period, which shall extend the limitations of the right to enforce such judgment lien for 10 years from the date of recordation of the second certificate. The clerk of the court shall index the certificate in both names in the index of the judgment lien book and give reference to the book and page in which the original lien is recorded. This extension procedure is subject to the exception that if the action is against a personal representative of a decedent, the motion shall be within two years from the date of his qualification, the extension may be for only two years from the time of the recordation of the certificate, and there may be only one such extension.
C. No suit shall be brought to enforce the lien of any judgment, including judgments in favor of the Commonwealth, upon which the right to issue an execution or bring an action is barred by other subsections of this section, nor shall any suit be brought to enforce the lien of any judgment against the lands which have been conveyed by the judgment debtor to a grantee for value, unless the same be brought within five years from the due recordation of the deed from such judgment debtor to such grantee and unless a notice of lis pendens shall have been recorded in the manner provided by § 8.01-268 before the expiration of such five-year period.
D. In computing the time, any time during which the right to sue out execution on the judgment is suspended by the terms thereof, or by legal process, shall be omitted. Sections 8.01-230 et seq., 8.01-247 and 8.01-256 shall apply to the right to bring such action in like manner as to any right.
E. This section shall not be construed to impair the right of subrogation to which any person may become entitled while the lien is in force, provided that he institutes proceedings to enforce such right within five years after the same accrued, nor shall the lien of a judgment be impaired by the recovery of another judgment thereon, or by a forthcoming bond taken on an execution thereon, such bond having the force of a judgment.
F. Limitations on enforcement of judgments entered in the general district courts shall be governed by § 16.1-94.1, unless an abstract of such judgment is docketed in the judgment book of a circuit court. Upon the docketing of such judgment, the limitation for the enforcement of a district court judgment is the same as for a judgment of the circuit court.
G. Any extension of the limitations of the right to enforce a judgment shall conform substantially with the following form:
CERTIFICATE OF EXTENSION OF LIMITATION OF RIGHT TO ENFORCE JUDGMENT LIEN
Place of Record ___________________________________________________________________________
Date Judgment Docketed ___________________________________________________________________________
Judgment Lien Book __________________ Page ___________________________________________________________________________
Name of Creditor(s) ___________________________________________________________________________
Address of Creditor(s) ___________________________________________________________________________
Phone number of Creditors(s)(if available) ___________________________________________________________________________
Name of Debtor(s) ___________________________________________________________________________
I/we, the judgment lien creditor(s), do hereby certify that the aforementioned judgment lien be extended 10 years from the date of my/our endorsement upon this certificate.
Judgment Creditor/Attorney-in-Fact/Agent: ___________________________________________________________________________
Commonwealth of Virginia
County/City of ____________________
Subscribed, sworn to and acknowledged before me by
_______________, this ____ day of ________, 20 ___
My Commission expires: ____________________
Notary Public: ____________________
H. Notwithstanding the provisions of this section, no execution shall be issued and no action brought on a judgment, including a judgment in favor of the Commonwealth and a judgment rendered in another state or country, rendered on medical debt pursuant to subdivision A 5 of § 8.01-246 after seven years from the date of such judgment or domestication of such judgment. Where such medical debt was incurred while receiving life-sustaining treatment, no such execution or action shall be issued more than three years from the date of such judgment or domestication of such judgment.
§ 16.1-94.1. Limitations on enforcement of district court judgments.
A. For judgments entered in a
general district court on or after January 1, 1985, no execution shall be
issued or action brought on such judgment, including a judgment in favor of the
Commonwealth, after ten 10 years from the date of such
judgment except as provided in subsection B and in
subdivision B 4 of § 16.1-69.55 B 4.
B. No execution shall be issued and no action brought on a judgment, including a judgment in favor of the Commonwealth, rendered on medical debt pursuant to subdivision A 5 of § 8.01-246 after seven years from the date of such judgment or domestication of such judgment. Where such medical debt was incurred while receiving life-sustaining treatment, no such execution or action shall be issued more than three years from the date of such judgment.