It’s all fair and well to have a good legal argument under substantive law i.e. negligence, breach of contract, … etc. However, one must not forget to pay attention to the procedural aspects of a case, which could lead to winning or losing in court with cost implications.
Today we will have a quick look at the limitation periods in some different jurisdictions for contractual claims.
Hong Kong
Generally, the limitation period is 6 years. Section 4. (1) of the Limitation Ordinance disallows actions brought after the expiration of 6 years from the date on which the cause of action
accrued.
However, the limitation period is 12 years for actions on contract under seal: Halsbury’s Laws of Hong Kong, Vol 7, Contract [115.419]
PRC
This one is very different from the rest. The limitation period is set at 2 years from when the relevant obligation arises. However it can be extended to infinity if repeated demands are made for payments; each demand being less than two years apart.
For more details, please refer to the People’s Republic of China Civil Law, Chapter VII.
Scotland
Generally, a 5 year limitation period applies to contract claims. The fifth year is known as the quinquennial. The limitation period runs from the date of loss or damage. In cases of latent damage the prescriptive period begins to run when the claimant becomes aware (or could with reasonable diligence have been aware) of the damage.
See the Prescription and Limitation (Scotland) Act 1973 for more information.
UK
The limitation period is 6 years for simple contracts. For other types of contract the limitation period can go up to 12 years.
USA
This varies from state to state. The link below provides more details.
http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html
Summary
Generally speaking you should bring your case to court before the limitation period expires. Doing anything else will probably lead to significant losses. If you are in doubt about your rights, please feel free to contact us for more information.
Chris Fung (cfung@lehmanlaw.com) & Mike Wang (yuwang@lehmanlaw.com)