Diritto commercialeContenzioso commercialeNotizieThe statute of limitations and effect of executing company financials – when is an action time barred?

Il statute of limitations in Queensland refers to the time limit within which legal actions can be initiated for various civil and criminal offenses. It serves as a fundamental principle of justice, providing a degree of certainty and fairness by preventing individuals from being subjected to legal claims or prosecutions indefinitely. The statute of limitations varies depending on the nature of the offense and the relevant legislation governing it.

In civil cases, the statute of limitations sets a time limit for bringing a lawsuit to court. The limitation period typically starts from the date when the cause of action arises or when the plaintiff becomes aware, or should have reasonably become aware, of the injury or loss. In Queensland, the Limitation of Actions Act 1974 (Qld) (atto) sets out the specific time limits for different types of civil claims, including personal injury, property damage, contract disputes, and professional negligence. For example, the time limit for personal injury claims is generally three years, while claims relating to breaches of contract have a six-year limitation period.

The statute of limitations serves several important purposes. Firstly, it promotes the prompt resolution of legal disputes, ensuring that evidence and witnesses’ memories are still fresh and available. It also protects potential defendants from facing claims based on events that occurred long ago, as memories fade and evidence may become unreliable or unavailable.

Additionally, it encourages diligence and timely action on the part of plaintiffs and law enforcement agencies, preventing the indefinite delay of legal proceedings.

However, it is crucial to recognise that certain circumstances can affect the application of the statute of limitations. These may include cases involving minors, individuals with disabilities, or instances where the defendant has concealed their actions or where new evidence emerges. In such situations, the limitation period may be extended or modified, allowing for a fair consideration of the claims.

In Queensland, extension of periods of limitation are governed by part 3 of the Act.  Section 35(3) of the Act provides a fresh accrual of action for recovery of a debt or other liquidated claim on acknowledgment or part payment.  In short, the six year limitation period ‘re-starts’ from the date of acknowledgement of the debt/claim or part payment thereof.

A recent District Court of Queensland decision (12 May 2023) by Porter KC DCJ in the matter of Commercial Images (Aust) Pty Ltd (in liq) v Manicaros [2023] QDC 77 examined the operation of this section of the Act. In this decision it was held that in signing company accounts in 2016, the director defendant acknowledged the debts in accordance with ss 35 and 36 of the Act, with the effect that the otherwise statute barred proceedings were able to continue.

In conclusion, the statute of limitations in Queensland sets time limits for commencing civil lawsuits and criminal prosecutions.

It promotes fairness, certainty, and the timely resolution of legal disputes. While it serves as an essential principle in the legal system, it is important to consider exceptions and special circumstances that may affect its application. By striking a balance between the rights of individuals and the need for timely action, the statute of limitations ensures a just and efficient legal process in Queensland.

If you have a cause of action you seek pursue it is recommended/imperative you speak with one of lawyers as soon as possible to ensure as far as practicable you do not lose your right to litigate.

Articolo scritto da Anthony Cocolas del nostro ufficio di Brisbane.