Law Firm’s Liability in Forgery Dismissed as Time-Barred by Statute of Repose

In the instant case, Madison County Circuit Judge William Mudge dismissed the remaining counts in a forged-signature dispute as time-barred. Cases getting dismissed at courts for being time-barred are a regular affair, but what makes this particular case interesting is that rather than the plain statutes of limitation, the court applied statutes of repose with citations.

In his order, Mudge cited the appellate court decision of Ferguson v. McKenzie:


"…[A] statute of repose extinguishes the action itself after a fixed period of time, regardless of when the action accrued. Unlike a statute of limitations, which begins running upon accrual of a cause of action, a statute of repose begins running when a specific event occurs, regardless of whether an action has accrued or whether any injury has resulted. A statute of repose gives effect to a policy different from that advanced by a statute of limitations; it is intended to terminate the possibility of liability after a defined period of time, regardless of a potential plaintiff's lack of knowledge of his or her cause of action."

Jane Childerson had sued in April 2013 claiming that her brother, who died in 2012, had forged her signature in a quit claim deed. The deed purported to convey her part of a joint property in Bond County to him, thus making him the sole owner. Jane Childerson also sued notary Phyllis Langenhorst for accepting her forged signature as authentic in 1992, thus causing the release of her interest in the property. In addition, she also sued the law firm of Johannes & Marron PC, as the employers of Langenhorst, the notary.

In summing up, Mudge wrote the action was timely as Jane Childerson learned of the forgery only after the death of her brother in 2012. However, he held, "the applicable statute of repose provides that such an action cannot be commenced in any event more than 6 years after the date on which the act or omission occurred."

Mudge further clarified, "Regardless of plaintiff's lack of discovery of the alleged forgery until 2012 the statute of repose terminates the possibility of liability after 6 years. Since it is alleged that the act or omission occurred in 1992, these counts are time-barred."

The order relates to the liability of the defendants in the matter, however the validity of the release is a separate matter, altogether, and if the signature is proved to be forged, the release would be void ab initio.