Procedure and alternatives - Limitation periods and jurisdic...

Learning Outcomes

By the end of this article, you will be able to explain the purpose and effect of limitation periods in civil claims, identify and apply the relevant time limits to varied claims, and outline the core rules governing jurisdiction in domestic and cross-border cases. You will also be able to distinguish between litigation and alternative dispute resolution, and understand how choices about forum and time limits affect practical advice to clients in dispute situations.

SQE2 Syllabus

For SQE2, you are required to understand the practical impact of limitation periods and jurisdiction, and be able to advise on the risks of time bars and forum selection in dispute resolution. In your revision, focus on:

• the main limitation periods for typical civil actions (contract, tort, personal injury, etc)
• exceptions and extensions to limitation periods
• the principle and consequences of a claim being statute barred
• how jurisdiction is determined in domestic and international cases
• forum selection and alternative dispute resolution (ADR) options
• application of these concepts in real-world scenarios

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. For a simple breach of contract claim in England and Wales, what is the usual limitation period?
   1. 3 years
   2. 6 years
   3. 12 years
   4. No limitation

2. Which court will typically have jurisdiction in a claim for a road traffic accident that occurred in France, where both parties are domiciled in England?

3. True or false? A claim that is brought after the limitation period has expired can proceed if the defendant does not raise limitation as a defence.

4. Name two alternative dispute resolution (ADR) methods other than litigation.

Introduction

When a dispute arises, you must determine both how (and where) it can be resolved and whether a claim is still legally possible. This article explains the rules on limitation periods—fixed time limits within which a claim must be made—and the principles by which courts decide whether they have jurisdiction to hear a case. These rules ensure finality, legal certainty and fair procedure, and are tested frequently in practice. For SQE2, you must be ready to identify limitation issues, advise on the correct forum, and be able to discuss ADR alternatives.

Limitation Periods: The Time Bar on Claims

Civil claims must usually be started within a prescribed time or they are "statute barred." The Limitation Act 1980 sets the primary rules.

Key Term: limitation period
The maximum time, prescribed by statute, within which a legal claim must be issued, starting from a specified date (usually when damage is suffered or an action accrues).

If the claimant fails to bring a claim within the limitation period, the defendant may raise the defence of limitation. If successful, the court will strike out the claim.

Key Term: statute barred
A claim that can no longer be pursued in court because the relevant limitation period has expired, and limitation has been asserted as a defence.

Key Civil Limitation Periods

• Contract claims: 6 years from the date of breach.
• Tort claims: 6 years from the date damage is suffered.
• Personal injury (PI): 3 years from the date of injury or date of knowledge.
• Fraud/deceit and latent damage: Special rules may delay accrual or extend limitation.
• Actions on a deed: 12 years from breach.

When Does Time Start to Run?

The limitation clock usually starts on the date the cause of action "accrues"—that is, when all elements of the claim exist. In personal injury, this may be later if the claimant only discovers their injury or the defendant's identity at a later date.

Key Term: date of knowledge
The date when the claimant first knew, or could reasonably have known, about the material facts needed for their claim (often used in PI and latent damage cases).

Can Limitation Periods Be Extended?

Some claims are subject to "extensions" or "postponement" of limitation. For example, if the claimant was under 18, or lacked mental capacity, limitation is paused ("suspended") until adulthood or recovery. Fraud, concealment by the defendant, or mistake may also shift the start date.

Effect of Missing a Limitation Period

Once a claim is statute barred, the court must dismiss the claim if the defendant relies on limitation as a defence.

Worked Example 1.1

Mary suffered a back injury at work in May 2019, but did not connect her pain to the accident until diagnosis in July 2022. She starts a claim in January 2023. Is her PI claim within the time limit?

Answer:
The usual PI time limit is 3 years from the date of injury or date of knowledge. Her claim is issued within 3 years of the July 2022 diagnosis, so is within time.

Exam Warning

Limitation is rarely extended by the court's discretion, except for personal injury claims under s.33 Limitation Act 1980. In most other cases, if the limitation period has lapsed and properly pleaded, the claim cannot continue. Ensure you check the precise time bar for the relevant type of claim in any problem scenario.

The Principle of Finality

Limitation periods serve a practical purpose: they prevent stale claims, protect defendants from indefinite threat of legal action, and support accurate evidence.

Key Term: cause of action
The legal grounds (facts and law together) giving rise to a claim which, once complete, allow a claimant to sue.

Key Term: jurisdiction
The legal authority of a court or tribunal to hear and decide a particular case, usually based on location, subject matter, or parties.

Jurisdiction: Where Should a Claim Be Brought?

The "jurisdiction" of a court determines whether it can hear a case, especially in disputes with international or cross-border elements. Jurisdiction may be determined by agreement or by statutory rules.

Key Term: forum
The particular court or tribunal in which a dispute is to be heard and resolved.

Domestic Jurisdiction Rules (England & Wales)

• The High Court, County Court, and specialist courts have defined subject matter and value "jurisdiction."
• Proceedings must be issued in the correct court and appropriate venue.

Cross-Border Jurisdiction (EU and Non-EU Cases)

The rules governing which country's court can hear a trial often depend on the domicile of the parties, where the events occurred, or contractual agreements.

• Within the EU: (subject to post-Brexit arrangements) jurisdiction is normally determined by the place where the defendant is domiciled, or where a contractual obligation is to be performed.
• Outside the EU or in non-EU contexts: the English court can exercise jurisdiction if there is a "real and substantial connection" and, in some cases, only by granting "permission to serve out of the jurisdiction."

Choosing the Forum: "Forum Shopping"

Parties sometimes have a choice of jurisdictions or courts. Factors influencing a forum selection include:

• Convenience, cost and speed of proceedings
• Applicable law (potentially affecting the claim's prospects)
• Enforcement options for any judgment obtained

Key Term: forum non conveniens
A doctrine allowing a court, in exceptional circumstances, to decline jurisdiction if another forum is clearly more appropriate for the dispute.

Commencing Proceedings: The Interplay with Limitation

The choice of court, especially where multiple jurisdictions are possible, can have important consequences for limitation—for example, the relevant country's period may be shorter or longer. It is essential to check that the claim meets all time requirements in the chosen forum.

ADR: Alternatives to Litigation

Before starting court proceedings, parties should usually consider alternative dispute resolution (ADR) mechanisms, such as mediation, arbitration or conciliation. Choosing ADR can influence the limitation period, as some forms may "pause" it ("standstill agreements").

Key Term: alternative dispute resolution (ADR)
Methods for resolving disputes without going to court, including negotiation, mediation, arbitration and conciliation.

Worked Example 1.2

Olaf and Pierre, both living in England, are involved in a car accident while on holiday in France. Where can a claim for personal injury be brought and what limitation period applies?

Answer:
As both parties are domiciled in England, but the accident occurred in France, English courts may accept jurisdiction under certain rules, but French limitation periods may apply. The applicable period and forum would depend on detailed facts and the relevant international rules.

Revision Tip

When advising a client from the outset, always check both the limitation period and correct forum—and warn that bringing a claim in the wrong court, or after expiry of the time limit, is likely fatal.

Worked Example 1.3

A supplier wishes to sue a customer based in Scotland for unpaid invoices, but the contract is silent on governing law and jurisdiction. Where should proceedings be issued?

Answer:
If the contract does not specify, proceedings may be brought in the court where the defendant resides (Scotland), or possibly in England if a substantial part of contractual performance occurred there. The correct forum must be established before issuing the claim.

Key Point Checklist

This article has covered the following key knowledge points:

• A limitation period is the statutory time limit for bringing a legal claim.
• If a claim is brought outside the permitted time and the defence is raised, it will usually be struck out.
• Typical limitation periods: contract (6 years), tort (6 years), personal injury (3 years), actions on a deed (12 years).
• The limitation clock starts when the cause of action accrues, subject to exceptions.
• Courts only have jurisdiction to hear claims within their legal and territorial authority; cross-border disputes follow special rules.
• Parties must advise on the correct forum as well as limitation periods.
• ADR is a key alternative to litigation and may affect limitation.

Key Terms and Concepts

• limitation period
• statute barred
• date of knowledge
• cause of action
• jurisdiction
• forum
• forum non conveniens
• alternative dispute resolution (ADR)