Contracting parties recognize that a lawsuit in court for breach of contract must generally be commenced before the statute of limitations had expired. But what if the claimant, pursuant to a mandatory arbitration provision, fails to demand arbitration of a dispute before the statute of limitations had expired on its substantive claim for breach of contract. Has the claimant waived its right to compel arbitration?
This issue was addressed recently by the Appellate Court of Maryland in Park Plus v. Palisades of Towson, 478 Md .35, 272 A. 3d 309 (2022). And, as will be noted, there have been differing opinions among the limited numbers of state courts, including Pennsylvania, that have addressed this very question.