Balog v. Center Art Gallery—Hawaii, Inc.
United States District Court for the District of Hawaii
745 F. Supp. 1556 (1990)
- Written by Margot Parmenter, JD
Facts
Edward and Helen Balog (plaintiffs) purchased multiple artworks from Center Art Gallery—Hawaii, Inc. (Center Art) (defendant) while on vacation in Hawaii. The purchases took place from 1978 to 1981, with a total price of $36,200. At the time of purchase, Center Art represented that the artworks were originals by Salvador Dali. After purchase, from 1978 to 1987, Center Art mailed the Balogs certificates of authenticity for the artworks. In 1988, the Balogs became aware of news reports indicating that Center Art was engaged in fraud and realized that the artworks they had purchased were likely forgeries. On January 13, 1989, they sued for breach of express warranty under the Uniform Commercial Code (UCC). Center Art moved to dismiss the suit, citing the statute of limitations. Center Art argued that the action accrued upon delivery of the artworks and that the Balogs, by failing to file suit until 1989, had filed outside the statute’s four-year filing period. In response, the Balogs argued that the action for breach did not accrue until they discovered the fraud and that, therefore, the statute was tolled until 1988, rendering their filing timely.
Rule of Law
Issue
Holding and Reasoning (Pence, J.)
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