Tipp FM Legal Slot – 15th January 2013
John M. Lynch on the Statute of Limitations
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Download Our New Year’s Resolutions. Statute of Limitations. Legal Time Limits Notes
What does the Statute of Limitations mean?
As we begin the New Year it is important for people to be aware that there are certain time limits within which they can bring a claim.
The Statute of Limitations is the length of time a person has to make a claim following an incident that gives rise to the claim. Once the specified time has passed an action can no longer be brought.
The logic is simple and grounded in common sense principles: after a certain length of time it is impossible to get accurate evidence – be it witnesses, people’s recollection etc. and the threat of legal action cannot hang over a person for an indefinite time.
Therefore, the law stepped in with the concept of the Statute of Limitations.
How long does a person have to take action?
The legal time limits vary depending on the area of law, for example a personal injury claim has to be made within two years; you have three years for a product liability claim; six years for a breach of contract claim; and so on. The Statute of Limitations may also work negatively against someone, for example with squatter’s rights after a certain time period – 12 years, or 30 against the State – a person may lose their land or property to a squatter who has been in possession of it for this length of time.
Generally, if a person is outside the limitation period they cannot take an action. But as with life, there are always exceptions. The big one is the ‘date of knowledge’ which extends the time until you know or ought to have known that you had a case.
Example
This situation arose in the UK in what became a well-publicised case. An illness known as asbestosis* was discovered, which in many cases resulted in fatalities. It was caused by asbestos which was a product that was used in the construction of roofs a number of years ago. Twenty or thirty years later it was discovered that asbestos caused problems with lungs to the extent that people died. Effectively, they were a slow burner and by the time the danger of asbestosis was discovered the Statute of Limitation of six years had long reached its limit.
As a result of Asbestosis disease the ‘date of knowledge’ was evolved based on the rationale that if you didn’t know about it you couldn’t possibly have done anything about it.
Whether the date of knowledge starts from the date that you consult with your doctor or the date where it became well known in the public arena is generally decided by the courts.
*Asbestosis is caused by long-term, repeated exposure to asbestos, a natural fiber that is used for various industrial purposes, such as insulation and car brake linings. Fibers of asbestos in the air are inhaled and become lodged in the lungs. As a result, lung tissue is scarred and lungs are unable to contract and expand normally.
Does the ‘date of knowledge’ apply in Ireland?
The Statute of Limitations (Amendment) Act 1991 introduced the ‘date of knowledge’ for personal injury cases. The date of knowledge is applied when the date the wrong/injury takes place differs from the date the wrong/injury is discovered. This means that in situations where the injury may not be obvious at first the time limit for actions does not begin until the injured party is aware of the injury. The date of knowledge has been applied in medical negligence cases; a person who receives a negligent medical procedure may not have knowledge of the injury at first until the injuries cause problems or they become aware that such problems arose as a consequence of such procedures. The ‘date of knowledge’ ensures that the time limit does not run out before a person realises they have an injury/action.
Does the Statute of Limitation apply to other areas of law other than personal injuries?
The example of asbestosis disease relates to tort law. The Statute of Limitation also applies to contract cases where if a person does not do his work properly because of negligence the injured party is entitled to sue the person in contract within a period of six years under contract law.
Interestingly there is no date of knowledge in this area of law.
What are the time limits for different areas of law?
[custom_list style=”list-10″]- If going after an account – 6 years
- Tort other than personal injuries – 6 years
- Contract – 6 years
- Enforcing an arbitration award – 6 years
- Estate – 6 years or 12 years depending on circumstances
- Land – Adverse possession – 12 years, or 30 years if the State are taking an action
- Unfair dismissal – 6 months
What if I am owed money and I am offered part-payment, does the ‘clock stop ticking’ on the limitation period and should I accept the money?
If someone acknowledges a debt this generally stops the clock running out.
However, if you accept the payment and it is only a part payment you should ensure that you acknowledge the payment as a part payment only.
Review your Existing Proceedings
[pullquote style=”right” quote=”dark”]You should review the solvency of the defendant if you have started your case against someone.[/pullquote]The solvency of the other party is now a critical factor in taking a case and in refusing an offer in settlement or, if offered, part-payment.
A lot of people have been caught in the last two years as they started proceedings against a defendant who was solvent when proceedings started and then became insolvent.
If there is a possibility that the defendant may be in financial difficulty do a company search to determine whether this is rumour or fact at e.g. companies’ office or local district / circuit court.
Where does ADR (Alternative Dispute Resolution) fit into all of this?
The option of resolving disputes out of Court is now becoming a big issue because of the cost, the time and the uncertainty of litigation.
Clients are, therefore, well advised to consider mediation or other forms of alternative dispute mechanisms as a viable option to a fully contested Court hearing.
At Lynch Solicitors we are proficient in both approaches and will tailor each case to take advantage of either or both. Many cases benefit from a mixed approach and it is essential to put a case plan in place to take advantage of this.
If I have suffered an injury how can I ensure the time limit I have to make my claim will not expire?
It is very important to contact us, at Lynch Solicitors, immediately when your difficulty or injury occurs, or as soon as you have knowledge of your injury, to ensure your case is not affected by the Statute of Limitations.
