Also known as: accrual of action · accruals of actions · accrual
Written by attorneys · grounded in primary & secondary sources — see below
A point in time at which a cause of action comes into existence so that suit may be brought and the applicable statute of limitations begins to run. Accrual occurs when the wrongful act is committed or when resulting damage is sustained, depending on the governing statute or rule.
A telecom company repossessed and auctioned routers belonging to an internet café owner. The owner proved the equipment's market value as of the auction date and sought prejudgment interest. Because the value was ascertainable from established market prices, interest ran from the auction date, the point at which the owner's cause of action for the property harm accrued, through the date of judgment.
A borrower missed several mortgage payments on an apartment building. The lender exercised its contractual acceleration clause, making the full balance due. The right to foreclose accrued at that moment of acceleration, allowing the lender to initiate foreclosure proceedings rather than waiting for the original maturity date.
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Accrual occurs on the date of the breach. The limitations period therefore begins to run when one party stops performing an obligation under the agreement, even if the parties continue to cohabit.
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Under the multiple-publication rule each distinct communication by the defendant counts as a separate publication. Each such act therefore triggers its own accrual date for statute-of-limitations purposes.
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A prompt good-faith tender of the chattel back to the owner may reduce the damages award. The tender does not erase liability but can limit recovery to losses incurred before the tender, because the owner's cause of action accrued at the time of the original wrongful taking.
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The right accrues when the lender exercises the acceleration option after default. Until acceleration the full obligation is not yet due, so foreclosure proceedings cannot be commenced.
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