A recent Missouri Court of Appeals decision provides an important reminder for businesses, contractors, service providers, and property owners seeking to collect unpaid debts. In NW MO Tow & Recovery, Inc. v. Gillis, the court addressed a common question that arises in contract disputes: how long does a party have to file suit to collect money owed under a written agreement?

The answer can make the difference between a valid claim and one that is permanently barred.

For Missouri businesses and individuals attempting to recover unpaid invoices, service charges, or contractual debts, understanding the applicable statute of limitations is critical.

The Facts Behind the Dispute

The case arose from a farming accident in northwest Missouri. A farmer was attempting to drive a tractor with an attached ripper across a bridge when the bridge collapsed, sending the equipment into a ditch.

Law enforcement contacted a towing and recovery company to remove the tractor and equipment. Due to the complexity of the recovery, the towing company brought in additional assistance. The recovery operation took approximately two days to complete.

During the recovery process, an employee of the farming operation signed a written authorization agreement. The document expressly authorized the towing company to perform the recovery work and stated that the customer agreed to pay the company's usual and customary charges for labor, materials, transportation, and related expenses.

The towing company successfully completed the recovery and later sent an invoice for approximately $18,600.

The farm owners refused to pay, believing the bill was excessive.

Several years later, the towing company filed a lawsuit for breach of contract seeking payment of the unpaid invoice, finance charges, attorney fees, and costs.

The defendants argued that the claim was barred by Missouri's five-year statute of limitations for contract actions and persuaded the trial court to dismiss the lawsuit.

The Missouri Court of Appeals disagreed.

Why the Statute of Limitations Matters

A statute of limitations is a law that establishes the deadline for filing a lawsuit.

If a lawsuit is filed after the applicable limitations period expires, the claim can be dismissed regardless of its merits.

In Missouri, contract claims generally fall under one of two limitations periods:

Five-Year Statute of Limitations

Missouri law provides a five-year limitations period for many contract-based claims.

Ten-Year Statute of Limitations

Missouri law also provides a ten-year limitations period for actions brought upon a written agreement for the payment of money.

Determining which statute applies can significantly impact whether a claim survives.

The Key Question: Does the Contract Contain a Written Promise to Pay Money?

The central issue in NW MO Tow was whether the signed service authorization constituted a written promise to pay money.

The Court of Appeals explained that Missouri courts focus on a relatively straightforward question:

Does the written agreement contain a promise to pay money?

If the answer is yes, the ten-year statute of limitations generally applies.

The court emphasized that the exact amount owed does not necessarily have to appear in the contract itself. The amount can often be established through invoices, records, or other evidence outside the contract.

Instead, the important issue is whether the written document reflects an obligation by one party to pay money to another.

Why the Court Applied the Ten-Year Statute

The court concluded that the towing company's written agreement contained a clear promise to pay.

The signed authorization specifically stated that the customer authorized the towing and recovery work and agreed to pay the company's customary charges for labor and materials.

According to the court, there was nothing conditional about that promise.

The towing company performed the requested services. The customer had agreed in writing to pay for those services. Because the lawsuit sought to enforce a written promise to pay money, the ten-year statute of limitations applied.

As a result, the lawsuit filed in 2025 was timely, even though the work had been completed in 2017.

The Court of Appeals reversed the dismissal and sent the case back to the trial court for further proceedings.

What This Means for Missouri Businesses

This decision is particularly important for businesses that routinely perform services before receiving payment.

Examples include:

• Towing and recovery companies;
• Contractors and subcontractors;
• Construction companies;
• Repair businesses;
• Equipment service providers;
• Landscapers;
• Agricultural service providers;
• Professional service firms; and
• Medical providers.

Many businesses assume that all contract claims become unenforceable after five years. That is not always true.

If a customer signs a written agreement containing a promise to pay for services, Missouri law may provide up to ten years to pursue collection through the courts.

That additional time can be extremely valuable when collection efforts, insurance disputes, bankruptcy proceedings, or settlement negotiations delay payment.

What This Means for Individuals Signing Service Agreements

The decision also serves as a reminder to consumers and business owners who sign work orders, service authorizations, repair tickets, and similar documents.

Many people view these forms as routine paperwork. However, a signed authorization can create legally enforceable obligations that may remain enforceable for many years.

Before signing a service agreement, it is important to understand:

• What services are being authorized;
• How charges will be calculated;
• Whether finance charges may accrue;
• Whether attorney fees may be recovered;
• Whether collection costs can be assessed; and
• What remedies may be available if payment is not made.

A signature on a seemingly simple work order can have significant legal consequences.

Common Collection Defenses in Contract Cases

Although the towing company prevailed on the statute of limitations issue, defendants in contract cases may still have other defenses available.

Potential defenses can include:

Lack of Authority

A party may argue that the individual who signed the agreement lacked authority to bind the business or property owner.

Disputed Charges

The amount claimed may be challenged as unreasonable, excessive, or inconsistent with the agreement.

Defective Performance

A customer may contend that the services were not properly performed.

Contract Interpretation

The parties may disagree about what obligations the written agreement actually created.

Each case depends on its specific facts and documentation.

Protecting Your Rights in Missouri Contract Disputes

Whether you are attempting to collect an unpaid debt or defending against a contract claim, the language of the written agreement often determines the outcome of the case.

A single sentence promising payment can affect not only the amount owed but also how long a lawsuit may be filed.

James Beal of Beal & Whitener LLP handled this appeal on behalf of the tow operator. We represent Missouri businesses and individuals in contract disputes, collection matters, commercial litigation, and business-related claims. We assist clients in evaluating written agreements, determining applicable statutes of limitation, pursuing unpaid obligations, and defending against questionable claims.

If you are involved in a dispute concerning an unpaid contract, invoice, service agreement, or business debt, contact our office to discuss your legal options.

This article is intended for general informational purposes only and does not constitute legal advice. Every case depends upon its unique facts, documents, and circumstances.