Statutes of Limitation in the Context of Civil Litigation
Our Associate Habiba Mokhtar writes about the main framework of statutory limitations governing civil claims and discusses practical considerations, emphasizing the need for timely legal action
Habiba Mokhtar ([email protected]) – Associate
The Bahraini Legal System adopts the principle that “a just claim never lapses”. Nonetheless, Decree Law No.19/2001 (the “Civil Code” or “BCC”) and multiple other specific legislations have set out statutory limitations concerning civil matters, wherein if a party fails to file a lawsuit within the timeframe specified in their respective legislative provisions, the right can be barred from judicial protection or considered legally extinguished due to the fact that the right was not used within the time-limit established by the law. Generally, the purpose of their implementation is to ensure the preservation of stable conditions and the penalization of the creditor’s inadvertence. Despite the possibility of the court considering that the claimant has a possible remedy and acknowledging the fact that the claimant has a right by virtue of the principles of Shariaa and “natural law”, their right of action can be considered time barred.
This article will seek to address the main framework of statutory limitations concerning civil matters and the practical considerations that must be considered by any party seeking to pursue civil litigation.
The Main Framework of Statutory Limitations
There are various types of statutes of limitations, leading to significant variations in the time periods applicable to different cases. For instance, the limitation period can extend up to 15 years, while in other cases, the law may restrict it to only a month, which will be highlighted under “practical considerations” below.
Without prejudice to shorter time-bars that may be implemented in specific legislations, the main framework of statutes of limitation can be segregated into the following categories:
1- Long Limitation [15 years]: Applicable to general civil claims that are in connection with any personal right, provided they are not time-barred by specific legislative provisions[1]. It is generally referred to as “long” due to being the longest limitation period applicable to civil claims. This encompasses a wide range of possible claims, and some examples include a claim in connection with a land sale contract, outstanding telephone service fees and outstanding school fees. The time-bar commences from the date that the obligation falls due.
2- Ten-year Limitation: Applicable to commercial claims between traders that are related to their commercial activities, provided they are not time-barred by specific legislative provisions.[2] Some examples include claims concerning commercial debts or a claim for compensation due to the debtor’s failure to perform their contractual obligations. The time-bar commences from the date that the obligation falls due.
3- Five-year Limitation: Applicable to multiple legal situations including claims concerning (i) sums payable periodically at regular intervals such as rent and pensions[3], (ii) the rights of independent practitioners (provided that their duties are performed independently of an employment relationship or commercial register) such as doctors, lawyers and experts[4] and (iii) taxes and dues owing to the State or for the reclamation of amounts that have wrongly been paid to the State[5]. The time-bar commences from the date that the obligation falls due, and in the case of reclamation of wrongly paid amounts to the state, commences from the date said payment is made.
4- Three-year Limitation: Applicable to a wide range of legal claims including claims concerning: (i) compensation for damages caused by unlawful acts (tortious liability)[6], (ii) compensation due to unjust
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[1] Article 365 BCC.
[2] Article 87(1) of the Law of Commerce.
[3] Article 366 BCC.
[4] Article 367 BCC.
[5] Article 368 BCC.
[6] Article 180(a) BCC.
enrichment,[7] (iii) restitution of undue payments[8], (iv) a voluntary agency,[9] (v) setting aside an act of alienation[10], (vi) warranties against architects or contractors[11] and (vii) insurance matters[12]. With the exception of warranties and insurance matters, the time-bar commences from the date that the debtor becomes aware of the damage and in any case cannot be heard after fifteen years. With regard to warranties against architects or contractors, the time-bar commences from the date of the collapse or discovery of the defect, whereas in insurance-related claims, the time-bar commences from the date of the incident related to the claim.
5- One-year Limitation: Applicable to multiple legal claims including claims concerning (i) labour matters arising from employment contracts after termination[13], (ii) the rights of traders and craftsmen concerning matters related to the supply of goods to non-traders, (iii) hotel owners claiming for outstanding dues connected to accommodation, food and guest related expenses, and (vi) the rights of domestic workers and workers holding a similar position[14]. The time-bar commences from the date that the obligation falls due.
Practical Considerations
While there are multiple types of statutory limitations, it is observed that said types are all considered synonymous terms in the context of legislation, jurisprudence and legal practice. A notable example can be highlighted in the context of prescription (التقادم) [the main framework of statutory limitations highlighted above are all considered prescription periods] and preclusion periods(عدم سماع الدعوى) . The former refers to the legal extinguishment of a claimed right due to the failure to exercise said right during the specified timeframe while the latter refers to a claim that is barred from being heard by the courts due to the failure to exercise said right or to perform a specific act during the specified timeframe, while the legal right remains valid without judicial protection. In essence, both types of limitation prevent the claimant from pursuing litigation. Generally, prescription periods tend to be longer in duration, whereas preclusion periods tend to be much shorter.
It is essential to distinguish between both types as preclusion periods tend to be more specific and dispersed throughout legislation, while holding a higher risk that requires immediate legal action. An example of said risk is highlighted under Article 135 of the Labour Law wherein an employee’s right to claim compensation for dismissal (without prejudice to other employment rights) is barred from being heard by the courts if a civil claim is not pursued within a month after termination.
In application, and by virtue of Article 379 BCC, the court cannot enforce a statute of limitation sua sponte (on its own initiative), however any statute of limitation must be pleaded by the debtor to be considered by the courts and are subject to the same level of scrutiny. Once a statute of limitation is pleaded, the courts assess whether the conditions pertaining to the plead limitation are satisfied and whether there is sufficient reasoning for the period to be considered interrupted. Reasons for the interruption of the statute of limitation are non-exhaustive and is under the discretion of the courts considering the facts of the case.
It is relevant to note that by virtue of Article 380(1) BCC, contracting parties cannot agree to reduce or prolong the statutes of limitation and must abide by the provisions set out within the law.
Concluding Remarks
It is essential to note that the relevant limitation period depends on the legislative provisions that are applicable to the case. Given that there can be short limitation periods during which the claimants must file a lawsuit, it is crucial that prospective claimants seek immediate legal advice as soon as the cause of action materializes to ensure that their claim is pursued within the relevant limitation period and avoid the risk of being time-barred from claiming their entitlements.
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[7] Article 183 BCC.
[8] Article 190 BCC.
[9] Article 200 BCC.
[10] Article 239 BCC.
[11] Article 619 BCC.
[12] Article 722 BCC.
[13] Article 136 of the Labour Law.
[14] Article 369(1) BCC.
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