LEGAL ISSUES REGARDING STATUTES OF LIMITATION FOR INITIATING CIVIL ACTIONS
In civil relations, the statute of limitations for initiating a lawsuit constitutes a crucial legal basis determining whether a party’s claim will be accepted and adjudicated by the Court. Where the right to initiate legal proceedings is not exercised within the statutory time limit, and does not fall within cases eligible for extension or exemption from the statute of limitations, the party may lose the right to request dispute resolution. Through this article, TNTP aims to clarify legal provisions on statutes of limitation, methods for determining periods excluded from the limitation period, and certain practical issues, thereby assisting individuals and enterprises in proactively mitigating legal risks.
1. Statute of Limitations for Initiating Lawsuits
Pursuant to Article 150.3 of the Civil Code 2015 (“Civil Code”), the statute of limitations for initiating a lawsuit is the time limit prescribed by law within which an individual or organization may file a claim with the Court to resolve a dispute for the protection of its lawful rights and interests. Upon expiry of this time limit, the right to initiate legal proceedings is, in principle, no longer guaranteed, except in cases where the law provides that the statute of limitations does not apply or allows for its reinstatement.
In practice, civil law provides for various limitation periods depending on the nature of the legal relationship. For example, the limitation period for claims for damages or ordinary contractual disputes is typically 03 years; the limitation period for inheritance division claims is 30 years for immovable property and 10 years for movable property; the limitation period for requesting a declaration of invalidity of a civil transaction is 02 years, except in cases of absolutely void transactions. The application of these limitation periods in practice may encounter difficulties when circumstances arise that interrupt or suspend the limitation period.
Even where the statute of limitations has expired, the Court may still accept the case upon receipt of a statement of claim; however, pursuant to Article 184 of the Civil Procedure Code 2015, the case may be dismissed if a party requests the application of the statute of limitations. Therefore, accurate determination of the limitation period and excluded periods is decisive in resolving civil disputes.
2. Determination of the Statute of Limitations
Determining whether a dispute is still within or has exceeded the statute of limitations requires not only reference to specific timelines but also consideration of relevant legal provisions. This assessment involves a comprehensive comparison of rules on limitation periods, cases where the statute does not apply, excluded periods, and guidance from procedural authorities.
Firstly, civil law recognizes certain categories of disputes that are not subject to any statute of limitations. These include: personal rights not attached to property; ownership rights; land use rights under Article 155 of the Civil Code; and absolutely void civil transactions under Articles 122, 123, and 124 of the Civil Code. In such cases, the right to initiate legal proceedings is not time-barred, and the Court must not dismiss the case on the grounds of expiration of the statute of limitations. These situations should be clearly distinguished from cases where the limitation period is merely suspended or adjusted.
Additionally, Article 156 of the Civil Code provides for periods excluded from the statute of limitations to protect the rights of entitled parties. Specifically, the limitation period shall not include periods during which force majeure events or objective obstacles prevent the claimant from exercising their rights; periods during which minors, persons lacking or having limited legal capacity, or persons with cognitive or behavioral difficulties do not have a lawful representative or substitute representative.
From the above provisions, it is evident that determining the statute of limitations requires a thorough review of: the time at which rights were infringed; the commencement of the limitation period; periods affected by objective events; the legal representation status of the parties; and relevant pre-litigation procedures.
3. Recommendations to Minimize Risks Related to Statutes of Limitation
Persons entitled to initiate legal proceedings should proactively determine the point in time when their lawful rights and interests are infringed and closely monitor the commencement of the limitation period in accordance with the law. At the same time, they should properly manage and retain documents and evidence relating to factors that may affect the calculation of the limitation period, such as force majeure events, objective obstacles, or the absence of a lawful representative. Timely and comprehensive preparation of evidence will be critical in disputes concerning limitation periods before the Court.
Moreover, upon the emergence of dispute signals, early consultation with legal counsel enables parties to accurately assess the applicable limitation period, identify excluded periods, and determine an appropriate time to initiate legal proceedings. In cases where differing interpretations regarding the application of limitation periods exist, filing a claim at an early stage is a prudent approach to safeguard lawful rights and interests.
For enterprises, establishing a dispute management mechanism, monitoring limitation periods for each type of legal relationship, and promptly updating legal regulations are essential measures for risk control. Accurate determination of the statute of limitations significantly affects the Court’s acceptance and resolution of cases.
The above constitutes TNTP’s legal perspective on the determination and application of statutes of limitation in civil disputes under current law. We hope that the analysis provided herein will offer useful insights for readers in assessing limitation periods and exercising their right to initiate legal proceedings in a timely and effective manner.
Best regards,
TNTP & Associates International Law Firm
Email: Legal@tntplaw.vn
Phone: 0944892906
