The UCC Statute of Limitations’ Conflict with the Equitable Rule of Discovery in Texas

Analyses the UCC statute of limitations’ conflict with the equitable rule of discovery in Texas. The Fifth Circuit has decided that Texas law has changed and the discovery rule is no longer applicable under UCC transactions. The Fifth Circuit found Texas law is similar to the other jurisdictions in which a plaintiff's cause of action may be cut off even before he suffers an injury. In light of the Fifth Circuit's possible error in its decision, the focus of this discussion will be on that court's interpretation of Texas law and its significance in light of what Texas state courts might decide when a similar case arises in state court. The Fifth Circuit's application of the UCC to Texas law is covered in Part II. The significance of the passage of the UCC and its interpretation in other jurisdictions is covered in Part III. The history of the discovery rule in Texas, as it applies to breach of warranty cases, is discussed in Part IV. The analysis of how the UCC might be interpreted in Texas in light of the discovery rule is presented in Part V.