CAN THE CONTINUOUS BREACH THEORY SAVE YOUR TIME-BARRED COMPLAINT?

Suit was brought in federal court, which then referred a certified question to the South Carolina Supreme Court to resolve whether the state recognized the continuous breach theory. The Court cited an example of a construction contract; if a contractor applied the wrong color paint to the bathrooms in a construction project, the failure to bring suit for that breach would not prevent the owner from pursuing a claim if the roof caved in five years later. The Court did state that the determination whether the subsequent breaches could be deemed a new obligation is a matter of contract law, and as with any contract, the court must first look to the terms of the contract and enforce the terms between the parties.