A recent case in an appeals court highlights the need to bring a lawsuit to set aside the terms of a settlement agreement within six years, the statute of limitations that applies to settlement agreements. In this case, a party determined that their pension benefits were almost negligible and tried to set the provision aside because of unconscionability, which is one of the basis for obtaining relief. Even though these facts were discovered shortly before the lawsuit was filed, it was barred by the contract statute of limitations that is but six years.
This action to set aside an agreement for unconscionability must be brought within the six year time limitation. Unfortunately, there is no way around the statute of limitation. That is why you should be vigilant to learn all of the ramification of a pension benefit well before the benefits will be paid. In this way you can avoid a catastrophic loss in the future.
