Abstract: A method and system for detecting and correcting error conditions on sequential devices in a private loop direct access fiber channel network respectively include the steps and instructions for determining the state of an exchange using an initiator and initiating an appropriate sequence level recovery using the initiator. The invention further includes determining whether a target response is overdue using a timer in conjunction with internal driver state information for indicating that packet information may have been lost. The invention further requests exchange and sequence state information from the target for determining the need for corrective action and takes the needed corrective action, such as resending sequence information, requesting that the target resend sequence information, or providing early indication to the ULP that an error has occurred.