Limitation and preclusion

It is accepted as a principle of civil law that the assertion of a property claim using state compulsion, i.e. the administration of justice, has been limited in time. The reasons why time limitations are introduced for the exercise of powers are mainly due to the difficulty of reconstructing evidence. As time passes, witnesses and parties may find it difficult to recall details of circumstances relevant to the decision. Documents and other sources of evidence may also become damaged, distorted or lost. In addition, as time passes, the state of facts, which should be followed by the state of law, is perpetuated.
In civil law, two institutions regulating the timing of claims are of fundamental importance: the statute of limitations and preclusion.

Statute of limitations

The statute of limitations on claims means that, after the expiry of the period of time provided for in the law, the party obliged to perform the claim may raise a plea of limitation. Raising a plea of limitation is subject to assessment under Article 5 of the Civil Code from the point of view of the principles of social co-existence. However, only in exceptional situations may the raising of this allegation be deemed to constitute an abuse of subjective right due to a breach of the principles of social co-existence. If the allegation is found to be successful, the court dismisses the claim on the grounds that the claim is time-barred. Although the claim exists, it cannot be asserted before the court. If, however, the debtor had performed the service demanded by the creditor, even though the claim has already become time-barred, the debtor cannot demand the return of the service rendered. The absence of state compulsion, which is a consequence of the claim being time-barred, does not prevent voluntary performance. Despite the statute of limitations, the claim therefore continues to exist. However, its fulfilment cannot be effectively demanded by means of state compulsion.
It is not the duty of the debtor to raise the plea of limitation. If the debtor chooses not to raise this plea, the court will hear the case as if the claim was not time-barred, even though the time for asserting it has expired.

Preclusion

Unlike the statute of limitations, preclusion causes the claim to cease to exist. After the expiry of the limitation period, the entitled party loses the legal title to demand performance from its debtor. A non-existent claim cannot therefore provide a legal basis for the debtor’s performance. Therefore, if the debtor fulfils a previously incumbent obligation after the expiry of the limitation period, the debtor may claim reimbursement of the fulfilled performance or its equivalent from the creditor. In doing so, the debtor does not have to raise a plea of preclusion in order to free itself from the obligation to perform.

How much time does the claimant have to pursue the claim in court?

The time allowed to pursue a claim before a court, i.e. the period of preclusion or limitation, depends on the type of claim. Only property and civil claims are subject to limitation or preclusion. There are also exceptions to this rule, but they are not numerous.
The period of limitation or claim preclusion shall be determined individually for each claim separately.
The Civil Code provides for a general regulation in Articles 117 et seq. According to the general regulation, the limitation period is six years. However, for claims for periodic benefits and claims related to the conduct of business activity – three years. The end of the limitation period falls on the last day of a calendar year, unless the limitation period is shorter than two years (Article 118 of the Civil Code).
Furthermore, pursuant to Article 125 § 1 of the Civil Code, a claim established by a final and binding decision of a court or other authority appointed to hear cases of a given type or by an arbitration court decision, as well as a claim established by a settlement reached before a court or arbitration court or a settlement reached before a mediator and approved by the court is time-barred after a lapse of six years. If a claim thus established involves periodic performance, a claim for periodic performance due in the future shall be time-barred after a lapse of three years.
The general rules do not apply if the limitation period for a claim is regulated differently in special provisions. The regulation of individual claims may therefore introduce different time limits for their assertion.

Examples of special regulation of the limitation period:

– claims under a contract for work are time-barred two years from the date the work was handed over, and if the work was not handed over – from the date on which it was to be handed over in accordance with the contract (Article 646 of the Civil Code),
– claims for remuneration for acts performed and for reimbursement of expenses incurred by persons who are permanently or within the scope of their business activities engaged in the same type of activity; the same shall apply to claims for advances made to such persons and claims for maintenance, care, upbringing or education, if they are made by persons professionally engaged in such activities or by persons maintaining establishments designated for that purpose, shall be time-barred after two years (Article 751 of the Civil Code),
– claims of the owner against the owner for remuneration for the use of the thing, for the return of benefits or for the payment of their value, as well as claims for compensation for damage due to deterioration of the thing are time-barred one year from the date of return of the thing. The same applies to claims of the same possessor against the owner for reimbursement of expenditures on the thing (Article 229 of the Civil Code).
Legal status as at 14.08.2024