7.9 Limitation of actions

Limitation of actions, also known as statutes of limitations, are laws that set a specific time frame within which legal proceedings can be initiated for various types of civil claims or criminal offenses.

It has been said that there are four broad rationales for the enactment of limitation periods. These are:

• As time goes by relevant evidence is likely to be lost.
• It is oppressive to a defendant to allow an action to be brought long after the circumstances that gave rise to it occurred.
• It is desirable for people to be able to arrange their affairs and utilise their resources on the basis that claims can no longer be made against them after a certain time.
• The public interest requires that disputes be settled as quickly as possible.

When evaluating an appropriate limitation system, consideration needs to be given to the following issues:

• The date when the limitation period commences to run;
• The length of the limitation period;
• Whether there should be an ultimate bar to commencing proceedings (a “long-stop” provision);
• Whether the court should have discretion to extend the limitation period and, if so, on what basis; and
• Whether the limitation period should be suspended, particularly for minors and incapacitated persons.
• None of these issues can be considered in isolation. As will become apparent, the various issues interact.