If a plaintiff was a New York resident when the out-of-state action arose, which statute applies?

• A. The statute of the state where injury occurred
• B. New York statute of limitations
• C. The shorter of the two
• D. Federal statute of limitations

Answer: (B)

The rule being tested is how New York handles statutes of limitations for claims arising outside the state. New York’s borrowing statute, CPLR 202, means that when a cause of action accrues outside New York, the time to sue is governed by the shorter of two periods: the statute of limitations of the place where the action accrued and New York’s own statute of limitations. A key detail is the plaintiff’s residence at the time of accrual: if the plaintiff was a New York resident when the action accrued, New York’s statute typically governs.

So, because the plaintiff was a New York resident when the out-of-state action arose, the applicable deadline is set by New York’s statute of limitations.