On May 24, 2016, Chancellor Carol L. McCoy of the Chancery Court for Davidson County, Tennessee, declined to dismiss claims brought by the Tennessee Consolidated Retirement System ("TCRS") against several large financial institutions related to $164 million in alleged losses on mortgage-backed securities. The banks argued that the case was barred by the three-year statute of limitation for common law fraud claims in Tennessee and the two-year limit for claims under the Tennessee Securities Act. Invoking the doctrine of nullum tempus occurit regni ("no time runs against the king"), however, the court held that limitations periods do not apply to the state or its political arms, such as TCRS. The court also held that TCRS adequately alleged the elements of its fraud, constructive fraud, negligent misrepresentation, and Tennessee Securities Act claims. Order.
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