27-2-202, MCA

Pearson v. MIGA [01/09/12] 2012 MTWCC 1 Since Petitioner signed the settlement agreement on his own behalf and was found by the Court to be incompetent at the time of the agreement, the agreement is subject to rescission pursuant to § 28-2-203, MCA, because Petitioner was of “unsound mind.”  Pursuant to § 27-2-202, MCA, an action founded on a written contract must be commenced within eight years, and since Petitioner filed his Petition for Trial a little over three years after the statute of limitations ran, the Petition would have been time-barred but for the five-year extension of the statute of limitations provided for in § 27-2-401(1), MCA, when an individual suffers from serious mental illness.

[1987] Royal Ins. Co. v. Roadarmel and White [3/17/00] 1999 MTWCC 23, reversed 2000 MT 259, 301 Mont. 508, 11 P.3d 105. WCC held this statute established the limitations period for an action to enforce an insurer's subrogation interest in a third-party recovery had by a claimant [Note: The WCC was reversed on this conclusion in Royal Ins. Co. v. Earl W. Roadarmel and Donald E. White, 2000 MT 259, 301 Mont. 508, 11 P.3d 105.]