After discovering a court employee had embezzled funds, Glynn County filed suit against public officials bonds provided by Old Republic Surety Company. While initially the surety relied on the six-year statute of limitations for written contracts, it later withdrew the defense because the bonds were under seal and ordinarily would be subject to a 20-year statute of limitations. Later it filed a supplemental motion based on O.C.G.A. Sec. 45-8-9, which provides a 3-year statute of limitations on public official bonds.
Upon reviewing and considering whether the surety had waived the statute-of-limitations defense, the court concluded it had not because the representations about the defense were in interrogatory responses — not responses to requests for admissions.
As to which statute of limitations apply — 20 years for instruments under seal or 3 years for public official bonds — the Court concluded that the 3-year statute of limitations applied. In statutory construction, specific provisions prevail over general provisions. And the Supreme Court had previously ruled that when circumstances implicate the 3-year statute, it will prevail over the 20-year statute.
The Court then considered when the 3-year statute began to accrue. It concluded that the accrual began when the County was aware of the violative conduct.
Since the County had knowledge of the misappropriations more than 3 years before filing suit, its claim was time barred.
