Labor Law -- 2004



Jones v. R.R. Donnelley & Sons Co.   (U.S. Supreme Court)

§ 1981 statute of limitations

The Supreme Court unanimously held 5/4/04 that the four-year statute of limitations set forth in 28 U.S.C. § 1658 applies to a civil action brought under 42 U.S.C. § 1981(b). Section 1981(b), created by the Civil Rights Act of 1991, expanded protection of the right to “make and enforce contracts” by defining this phrase to include “the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship.” 28 U.S.C. § 1658 creates a default four-year statute of limitations for civil actions arising under a federal statute enacted after December 1, 1990. Although Section 1981 was enacted long before December 1, 1990, the addition of subsection (b) occurred after that date. The Supreme Court held that the four-year limitations period applied, explaining that a cause of action “aris[es] under” an Act of Congress enacted after December 1, 1990, and therefore is governed by Section 1658’s 4-year statute of limitations, “if the plaintiff’s claim against the defendant was made possible by a post-1990 enactment.” This case is important to all entities that are or may become involved in litigation under 42 U.S.C. § 1981(b) or other federal statutes amended after December 1, 1990.