Enforceability after 20 years (Student Loan)

Here are the key elements of CPLR 211, with a focus on subsection (b) regarding money judgments:

CPLR 211: Actions to be commenced within twenty years

(a) On a bond:

• 20-year statute of limitations for actions on certain written instruments evidencing state or corporate indebtedness
• Exceptions for regulatory bodies and certain types of corporations
• Applies to all causes of action, including those barred as of April 18, 1950

(b) On a money judgment:

• Money judgments are presumed paid and satisfied after 20 years from when the party was first entitled to enforce it
• This presumption is conclusive, except in cases of:
  • Written acknowledgment of indebtedness within the 20 years
  • Payment made within the 20 years
  • Property acquired by enforcement order or levy upon execution (considered payment unless shown otherwise)
• Acknowledgment must be in writing and signed by the person to be charged
• If acknowledgment or payment is made, the 20-year period restarts from that date
• The presumption can be used as a defense that the action was not commenced within the time limit

(c) By state for real property:

• 20-year limitation for the state to sue for real property or related rents/profits

(d) By grantee of state for real property:

• Actions by grantees of state patents or grants limited to same extent as state's actions

(e) For support, alimony or maintenance:

• 20-year statute of limitations for enforcing support, alimony, or maintenance orders
• Applies to orders entered after the effective date of this section

Would you like me to elaborate on any specific aspect of CPLR 211(b) that is particularly relevant to your law firm's work in defending the enforcement of money judgments?

The text of the statute:

CPLR § 211. Actions to be commenced within twenty years

(a) On a bond. An action to recover principal or interest upon a written instrument evidencing an indebtedness of the state of New York or of any person, association or public or private corporation, originally sold by the issuer after publication of an advertisement for bids for the issue in electronic or physical form and secured only by a pledge of the faith and credit of the issuer, regardless of whether a sinking fund is or may be established for its redemption, must be commenced within twenty years after the cause of action accrues. This subdivision does not apply to actions upon written instruments evidencing an indebtedness of any corporation, association or person under the jurisdiction of the public service commission, the commissioner of transportation, the interstate commerce commission, the federal communications commission, the civil aeronautics board, the federal power commission, or any other regulatory commission or board of a state or of the federal government. This subdivision applies to all causes of action, including those barred on April eighteenth, nineteen hundred fifty, by the provisions of the civil practice act then effective.

(b) On a money judgment. A money judgment is presumed to be paid and satisfied after the expiration of twenty years from the time when the party recovering it was first entitled to enforce it. This presumption is conclusive, except as against a person who within the twenty years acknowledges an indebtedness, or makes a payment, of all or part of the amount recovered by the judgment, or his heir or personal representative, or a person whom he otherwise represents. Such an acknowledgment must be in writing and signed by the person to be charged. Property acquired by an enforcement order or by levy upon an execution is a payment, unless the person to be charged shows that it did not include property claimed by him. If such an acknowledgment or payment is made, the judgment is conclusively presumed to be paid and satisfied as against any person after the expiration of twenty years after the last acknowledgment or payment made by him. The presumption created by this subdivision may be availed of under an allegation that the action was not commenced within the time limited.

(c) By state for real property. The state will not sue a person for or with respect to real property, or the rents or profits thereof, by reason of the right or title of the state to the same, unless the cause of action accrued, or the state, or those from whom it claims, have received the rents and profits of the real property or of some part thereof, within twenty years before the commencement of the action.

(d) By grantee of state for real property. An action shall not be commenced for or with respect to real property by a person claiming by virtue of letters patent or a grant from the state, unless it might have been maintained by the state, as prescribed in this section, if the patent or grant had not been issued or made.

(e) For support, alimony or maintenance. An action or proceeding to enforce any temporary order, permanent order or judgment of any court of competent jurisdiction which awards support, alimony or maintenance, regardless of whether or not arrears have been reduced to a money judgment, must be commenced within twenty years from the date of a default in payment. This section shall only apply to orders which have been entered subsequent to the date upon which this section shall become effective.¹

Credits

(L.1962, c. 308. Amended L.1965, c. 214; L.1970, c. 267, § 7; L.1987, c. 815, § 8; L.2020, c. 56, pt. JJ, § 49, eff. April 3, 2020, deemed eff. April 1, 2020.)

CPLR 211

Case 1: Federal Higher Education Act Preempts New York's 20-Year Money Judgment Presumption

Summary: The New York State Higher Education Services Corporation sued to enforce a 25-year-old default judgment for unpaid student loans. The debtor argued the judgment should be deemed paid under New York's CPLR 211(b), which creates a conclusive presumption that money judgments are paid after 20 years. The court held that the federal Higher Education Act preempts this state law, allowing collection of the debt despite the passage of time.

Key Legal Principles:

1. The Higher Education Act eliminates all limitations defenses for student loan debt collection.
2. Federal law can preempt state statutes of limitations, including those that create conclusive presumptions.
3. Congressional intent to preempt state law is clear when explicitly stated in federal statute.

Conclusion: The main takeaway is that federal law allows for indefinite collection of student loan debts, overriding state laws that would otherwise limit such collection efforts. This ruling significantly strengthens the ability of guaranty agencies to pursue old student loan debts.

Citation: New York State Higher Educ. Services Corp. v Fabrizio, 73 AD3d 158 (3d Dept 2010)