Limitation of the right to compensation: when is it too late to claim money for damages?

What the statute of limitations on the right to compensation really means

Statutes of limitation are a legal mechanism designed to bring certainty to legal relations and to encourage victims to assert their rights in a timely manner. If the limitation period expires and the victim raises a statute of limitations obje ction, the court cannot normally award the claim. Although the right is not formally extinguished, it becomes unenforceable. In practice, this leads to situations where the injured party has a legitimate, documented claim but cannot successfully assert it due to the expiry of the time limit. This typically happens, for example, in car accidents, damages caused by the negligence of craftsmen or medical malpractice.

A typical example is the case of Mr. Peter, whose car was damaged by a driver in an accident. Mr. Peter thought that everything would be resolved amicably and hesitated for several years before filing a lawsuit. When the at-fault party finally refused to pay for the damage, Mr Petr did not pursue his claim in court. The statute of limitations ran relentlessly, and since no action was taken to interrupt it, Mr. Petr lost his compensation.

What are the limitation periods and when do they start to run

The statute of limitations on a claim for damages is based on two concurrent time limits: subjective and objective. The subjective three-year period begins to run when the injured party becomes aware of the damage and who caused it. He does not need to know the exact amount or to have expert reports, but it is sufficient that he is aware of the existence of the damage and has a realistic idea of the identity of the wrongdoer. From this point on, the courts require a certain amount of activity on the part of the injured party and allow him three years to bring a claim.

In addition to this, there is an objective period of ten years, which runs from the moment the damage occurs, regardless of when the victim becomes aware of it. If the damage was caused intentionally, this period is extended to fifteen years. The claim shall be time-barred by the earlier of these two periods. In practice, this means that even a victim who learns of the damage late does not have unlimited time to claim. However, in the case of injury to health, life or liberty, this objective time limit does not apply.

Particularly in the case of injuries to health, it is often difficult to determine the start of the time limit, as some of the consequences only become apparent with the passage of time. In such cases, the courts assess when the victim could reasonably have foreseen the extent of the injury. If, for example, long-term difficulties following a car accident do not become apparent until several months later, the time limit is often calculated from the moment when the manifestations of the medical condition stabilise.

Limitation of damages in criminal proceedings and its specifics

Special rules apply to damages claimed in criminal proceedings. The injured party may join his claim to the criminal proceedings by means of a so-called adhesion claim. By properly filing a claim in criminal proceedings, the limitation period is suspended (does not run) while the proceedings are pending. This mechanism protects victims in situations where criminal proceedings take a long time, which happens quite often.

However, there are also situations where the criminal court does not decide on compensation and refers the victim to civil proceedings. In such cases, the victim is given a new opportunity to pursue the claim – a new three-year limitation period starts to run. However, caution is needed as some victims mistakenly believe that by filing a criminal complaint their claim is automatically protected, which may not be true. The claim for damages must be made expressly in the criminal proceedings, otherwise the limitation period is not interrupted.

An example is the case of Mrs Jana, who lost CZK 150,000 to a fraudster. Jana timely asserted her claim for compensation in the criminal proceedings (she joined as a victim with an adhesion claim). This “extinguished” her claim even though the criminal proceedings lasted several years – the limitation period did not run during the criminal proceedings.

In the end, the criminal court did not rule on damages and referred Jana’s claim to civil proceedings. From the moment these criminal proceedings ended (typically by the legal validity of the decision), the limitation period will start running again. At the same time, the law protects the victim by providing that the limitation period may not begin to run again until 6 months after the time when the limitation period began to run again. Jana therefore had a realistic time to bring a civil action and successfully pursue the claim outside of the criminal proceedings.

How to interrupt the limitation period and what to look out for

The most reliable way to interrupt the running of the statute of limitations is to take legal action in court, which we can help you do. By exercising the right in court, the limitation period is stopped (not started) while the proceedings are pending; after the end of the proceedings, the limitation period continues, but does not end until 6 months after the restart of the limitation period. Thus, if the creditor expressly acknowledges his liability or signs a repayment agreement, the new 10-year period starts to run, regardless of how long the previous one ran.

There is also a break if the victim properly pursues a claim in criminal proceedings. Filing an adhesion petition is a very powerful step in terms of protecting the claim.

Conversely, merely communicating with the insurance company or the victim, negotiating the amount of damages, or dealing with the paperwork has no effect on the running of the statute of limitations. Many people do not understand this fact and believe that every action keeps the claim alive. This is a very common and often fatal mistake. For example, Mr. Martin, who had a long communication with his insurance company after a car accident, found this out. He believed that the matter was still “pending”, but the subjective three-year time limit had since expired. By the time he tried to pursue his claim in court, it was too late.

An exception to the above rule may be an express agreement to settle out of court – the limitation period does not run during such a settlement.

Why use the help of a lawyer

The statute of limitations is an area where even a small mistake can mean a major loss of a claim. It is not enough to know that a claim exists. It is necessary to determine exactly when the victim became aware of the damage, whether the damage was caused intentionally, whether steps were taken to interrupt the statute of limitations, and what time limits actually apply. This legal and temporal calculation can be complicated and should be left to an expert.

An attorney will analyze your case, accurately determine the running of the time limits, recommend the appropriate course of action to interrupt the statute of limitations, and prepare a lawsuit or motion for criminal proceedings if necessary. He or she can also evaluate whether a debt acknowledgement can be used or whether there is room for successful out-of-court negotiations.

One client of Accessible Advocate believed that her investment misconduct claim was time-barred because several years had passed since the event. However, after careful analysis, it became apparent that the subjective time limit had started to run later than she had anticipated, as only a subsequent settlement revealed the true extent of the loss. The claim for CZK 380,000 could thus be successfully asserted.

Do you want to be sure that your claim will not be time-barred?

Don’t rely on the fact that there is still time. The statute of limitations runs relentlessly and there is often no turning back once it has expired. If you want to make sure that your claim for compensation is filed in a timely and proper manner, contact us. We will assess your case, explain your options and make sure your rights are not extinguished simply because of a missed deadline.

Summary

The statute of limitations on a claim for damages is a legal mechanism that, while it does not extinguish the right, it does make it unenforceable if the injured party fails to timely assert his or her claim. Two time limits run – a subjective three-year period from the time the injured party becomes aware of the damage and the wrongdoer, and an objective ten-year period (fifteen years in the case of intentional damage) from the time the damage occurred; the claim is barred by whichever expires first. The limitation period may be interrupted, in particular, by the filing of a lawsuit, an acknowledgement of debt or the proper assertion of a claim in criminal proceedings by way of an adhesion action. However, mere communication with the insurer or the claimant does not affect the running of time limits. In criminal proceedings, the limitation period is interrupted by the filing of an adhesion petition, and if the victim is referred to civil proceedings, the new three-year period starts running again. Correctly determining the start of the time limits is often difficult, particularly in the case of a medical injury or more complex property damage, and any error may result in the loss of the claim. It is therefore advisable to seek the help of a solicitor who will assess the case, determine the running of time limits, suggest a procedure to interrupt the limitation period and prepare the necessary legal steps to ensure that the victim does not lose their claim.