Statute of limitations for claims – what to know at the end of the calendar year

What is the limitation period?

What is the limitation period? The limitation period is a legal concept whereby, after a specified period of time has elapsed, a debtor may refuse to fulfil an obligation if the creditor has not pursued their claim within the prescribed time limit. It is worth noting, however, that the limitation period does not cause the claim itself to lapse, but merely results in the loss of the ability to pursue it through the courts.

The limitation period is a legal concept whereby, after the expiry of a period specified in the legislation, the debtor acquires the right to refuse to fulfil their obligation towards the creditor if the latter has not pursued their claim within the prescribed time limit. The key aspect of this concept is understanding that the limitation period does not result in the extinction of the claim itself as a legal relationship. This means that the claim still exists, but it cannot be enforced through the courts, i.e. it is transformed into a so-called natural obligation.

The purpose of the limitation period

The legislator introduced the statute of limitations to stabilise legal transactions. The statute of limitations provides legal certainty to parties regarding their legal position after a specified period has elapsed. On the one hand, it protects the debtor from having to constantly watch out for the possibility of the creditor pursuing claims; on the other hand, it constitutes a kind of sanction against a creditor who has failed to pursue their claim in a timely manner.

Commencement of the limitation period

The commencement of the limitation period is a key element in the context of the possibility of effectively pursuing claims under civil law. Correctly determining the point at which the limitation period begins is essential for assessing whether a given claim is still valid or whether, from a legal perspective, it has already become unenforceable. The limitation period begins on the date on which the claim could be pursued – that is, usually from the date after which the claim became due.

The end of the limitation period, however, is specified in years and expires at the end of the calendar year in which the relevant number of years indicated in the provision has elapsed from the date on which the claim became due.

Example:

If the claim became due on 15 March 2020 and has a three-year limitation period (under the general provisions of the Civil Code), the limitation period will expire on 31 December 2023.

Correctly determining the starting point of the limitation period is crucial for assessing the possibility of pursuing claims and any defence against them. Where a debtor invokes the expiry of the limitation period and argues that it began to run earlier than the creditor assumed, this may prevent the effective pursuit of the claim.

Suspension of the limitation period: how is it calculated?

Interruption of the limitation period means that, following the occurrence of specific circumstances (e.g. the debtor’s acknowledgement of the debt or the creditor taking legal action to pursue the claim), the limitation period starts afresh from the beginning, as if the previous period had never taken place.

Suspension of the limitation period means a temporary halt to its running for a specified period due to specific circumstances, e.g. when, due to force majeure, the creditor is unable to pursue the claim before a court or other body authorised to hear cases of this nature. Once the reason for the suspension ceases to apply, the limitation period resumes, and the previous period of its running is included in the total limitation period.

Limitation periods for claims

The limitation periods for claims under the general provisions of the Civil Code are:

6 years – the general limitation period for pecuniary claims, unless otherwise provided by law.

3 years – for claims for periodic payments and claims arising from business activities.

Furthermore, the law may specify a different limitation period for specific claims (both shorter and longer), such as:

6 months – for claims to which a carrier is entitled against other carriers who participated in the carriage of the consignment.

2 years – for claims arising from a contract of mandate.

5 years – for claims arising from a simple bequest in a will.

And many others.

Summary

The limitation period is a key concept in Polish civil law, designed to ensure the stability of legal transactions. Both debtors and creditors should be aware of the rules governing the limitation period in order to avoid potential misunderstandings or other legal issues. If you are interested in the suspension of the limitation period, how to calculate it, or have any other queries regarding the limitation period, please contact HWW Hewelt Wojnowski Lindner i Wspólnicy.