Determining the Limitations Period in Civil Disputes: Legal Basis and Practical Considerations
In civil disputes, accurately determining the limitations period holds particular importance because the limitations period is the legal basis for the dispute-resolution authority to consider accepting a case and protecting the lawful rights and interests of the parties. A case may only be accepted and resolved when it remains within the limitations period; conversely, when the matter has expired its limitations period and does not fall under a situation where the limitations period does not apply, the party may lose the right to request the dispute-resolution authority to resolve the case. This article provides a detailed analysis of the legal basis, the method for determining periods excluded from the limitations period and common practical situations, thereby assisting individuals and enterprises in proactively managing legal risks in civil disputes.
1. Overview of the limitations period and its significance in civil procedure
Under Clause 3 Article 150 of the Civil Code 2015, the limitations period is the time limit within which a party is entitled to initiate a lawsuit requesting the Court to resolve a dispute in order to protect his or her lawful rights and interests. When the limitations period expires, the right to initiate a lawsuit is no longer legally protected, except for certain cases where the law provides that the limitations period shall not apply or shall recommence.
In practice, several limitations periods are commonly applied, including: the three-year limitations period for claims for damages; the three-year limitations period for contractual disputes; the thirty-year limitations period for claims for division of inheritance relating to immovable property and ten years for movable property; and the two-year limitations period for disputes relating to void civil transactions, except for cases of absolute invalidity where the limitations period does not apply. These are frequently applied in civil relations and often cause confusion when multiple factors interrupt or suspend the limitations period.
Where a party files a lawsuit after the limitations period has expired, the Court will still accept the petition but may dismiss the case if the opposing party requests the application of the limitations period under Article 184 of the 2015 Civil Procedure Code. This results in the claimant’s rights not being protected, even when the dispute has substantive legal grounds. Therefore, accurately identifying the limitations period and periods excluded from it is essential for determining the appropriate dispute-resolution strategy.
2. Determining the limitations period
Determining whether a matter remains within the limitations period requires assessing, at the same time, three groups of legal provisions: cases where the limitations period does not apply; periods excluded from the limitations period; and interpretative or guiding regulations in judicial practice.
First, for certain disputes, the Civil Code stipulates that the limitations period does not apply, meaning the claimant may initiate a lawsuit at any time. These include disputes relating to non-property personal rights; rights of ownership; land-use rights under Article 155 of the Civil Code; or absolutely void civil transactions under Articles 122, 123 and 124 of the Civil Code. Where the limitations period does not apply, the Court must not dismiss the case for expiry of the limitations period. This must be distinguished from circumstances where the limitations period is suspended or excluded.
Article 156 of the Civil Code is the key legal basis for determining periods excluded from the limitations period. Accordingly, a period shall not be counted into the limitations period when any of the following events occurs:
• The period during which a force majeure event or an objective obstacle occurs, making it impossible for the party entitled to initiate a lawsuit to exercise such right within the limitations period as provided in Clause 1 Article 156 of the Civil Code. This provision ensures that the claimant does not lose the right to request the Court’s protection merely because of circumstances beyond his or her control.
• The period during which the person entitled to initiate a lawsuit has no legal representative, in the case where such person is a minor, has lost civil capacity, has difficulty in cognition or behaviour control or has limited civil capacity, is also excluded from the limitations period under Clause 2 Article 156 of the Civil Code. The absence of a lawful representative prevents the person from exercising the right to initiate a lawsuit and therefore this period must be excluded.
• The period during which no replacement representative exists in situations where the representative no longer exists or, for legitimate reasons, cannot continue to act as a representative, for persons entitled to initiate a lawsuit who are minors, have lost civil capacity, have difficulty in cognition or behaviour control or have limited civil capacity under Clause 3 Article 156 of the Civil Code. This important provision ensures that the right to initiate a lawsuit is not affected by the absence of a lawful representative for a certain period of time.
Thus, in order to determine accurately whether the limitations period has expired, it is necessary to concurrently consider the time at which the limitations period begins; the time at which rights and interests were infringed; the time during which a force majeure event occurred; the time during which a representative was absent; the time spent on mandatory pre-litigation procedures; and other relevant legal provisions. Any error in determining the limitations period may result in the claimant losing the right to sue.
3. Practical recommendations to minimize litigation risks
Based on practical experience in advising and participating in numerous civil cases, we make several recommendations to help individuals and organizations proactively avoid the risk of losing the right to initiate a lawsuit due to expiry of the limitations period as follows:
• The party entitled to initiate a lawsuit should closely monitor the time at which their lawful rights and interests were infringed and maintain complete documentation evidencing events that may suspend or exclude the limitations period, including documents proving force majeure events, objective obstacles or the absence of a lawful representative. Preparing a complete evidentiary record from the outset helps reduce disputes regarding the limitations period upon filing.
• At the same time, when signs of a dispute arise, the claimant should promptly seek advice from a lawyer to determine the limitations period, identify any periods excluded from it and choose the appropriate time to initiate proceedings.
• In cases where it is impossible to clearly determine whether the limitations period remains or has expired, proactively filing a lawsuit – particularly immediately upon infringement of rights – is the safest measure to protect the claimant’s interests.
• For enterprises, establishing an internal dispute-management process, categorizing limitations periods based on different civil and commercial relationships and regularly updating new legal regulations are essential to minimizing risks.
Determining the limitations period and accurately identifying periods excluded from it are decisive steps that determine whether a case can be accepted and resolved. By understanding the legal framework, proactively collecting evidence and managing information from the moment rights are infringed, individuals and enterprises can significantly reduce procedural risks. A timely and prudent legal strategy, supported by legal specialists or lawyers, will help effectively safeguard lawful rights and interests when disputes arise.
