Limitation Periods: How Long Do You Have to Bring a Claim?

Limitation Periods: How Long Do You Have to Bring a Claim?

When a legal dispute arises, there is often a limited amount of time available to take legal action. Limitation periods establish time limits within which certain court proceedings must be commenced.

Failure to act within the applicable limitation period may result in a claim becoming statute-barred. This means the time limit set by legislation has expired and may prevent a person from pursuing the claim through the courts, even if the claim itself may otherwise have been valid. 

What Is a Limitation Period?

A limitation period is the period within which a person must commence legal proceedings.

In New South Wales, many limitation periods are governed by the Limitation Act 1969 (NSW). Similar legislation applies across Australia, including the Limitation of Actions Act 1958 (Vic) in Victoria, the Limitation of Actions Act 1974 (Qld) in Queensland and the Limitation Act 2005 (WA) in Western Australia.

However, the specific time limit that applies will depend on the type of claim, the circumstances surrounding the dispute and the State or Territory in which the claim is brought. For example, claims founded on contract and many torts claims generally have a limitation period of six years from when the cause of action accrues, while claims found on a deed generally have a longer period of 12 years.

Other types of claims can have significantly shorter or different time limits. For example, defamation proceedings are generally subject to a one-year limitation period. This reinforces the importance of seeking legal advice as early as possible, as limitation periods can differ depending on the particular matter.

When Does the Limitation Period Start?

Determining when time begins to run is not always straightforward.

In a contractual dispute, the limitation period will generally begin when the relevant breach occurs. In other types of claims, the relevant date may depend on or relate to when the cause of action arose, when damage occurred or, in some cases, when particular facts became known.

This can become particularly important where a dispute has developed over several years or where the loss was not immediately apparent.

Can a Limitation Period Be Extended?

Subject to specific circumstances, legislation may allow a limitation period to be extended or delayed. Whether that option is available depends on the type of claim and specific circumstances involved.

For that reason, extensions cannot simply be relied upon or assumed.

If there is uncertainty about when the limitation period will expire, it is important to seek legal advice as early as possible.

Why Acting Early Matters

Limitation periods are more than just soft procedural time limits. If the relevant period expires, the defendant may be able to use that expiry as a complete defence to the claim.

Waiting too long can also cause practical difficulties for your case. Important documents may be misplaced, witnesses may no longer be available, and evidence can become harder to locate or preserve.

As such, limitation periods should be considered from the very beginning of any potential dispute, even if the parties are still negotiating or trying to resolve the matter.  

How We Can Help

At MC Lawyers & Advisers, we regularly advise individuals and businesses in relation to commercial disputes, contractual claims and litigation.

If you are considering bringing a claim or are concerned that a limitation period may be approaching, we can assess your position, identify the relevant timeframe and advise on the appropriate next steps.

Obtaining advice early can help ensure that valuable legal rights are not lost simply because time has expired.