Federal Circuit Upholds Ruling That Statute Of Limitations Bars Claims For Restriction Of Prepayment Rights

摘要

Section 515 project owners' breach of contract claims for prepayment restrictions are barred by the statute of limitations, the U.S. Court of Appeals for the Federal Circuit ruled, upholding the decision of the Court of Federal Claims. (Tamerlane, Limited v. U.S., No. 2008-5071, 2008 WL 5273564 (Fed.Cir.), December 22, 2008; for background, see Current Developments, Vol. 36, No. CD-7, p. 216.) The breach of contract claims were asserted by two of the four plaintiffs in the case, Mullica West Limited and Park Terrace Limited, which had pre-1979 Section 515 loans maturing in 2017 and 2028, respectively. After submitting what they called "pro forma" prepayment requests that would not be approved, they accepted equity loans with use restrictions expiring in 2011 for Mullica West and 2013 for Park Terrace.