Suspension of the statute of limitations in the compensation claim

Suspension of the statute of limitations in the compensation claim

Disclaimer: This is a legal article that provides general information and does not replace consulting a competent lawyer to help you and provide more accurate information.

Yes, definitely. The Saudi Civil Transactions Law differentiates between the “suspension” of the statute of limitations (failure to hear a case) and its “interruption,” each of which has a different legal effect. This can be achieved through justifications and procedures specified by the law as follows:

Stopping the statute of limitations (freezing the calculation of the period)

Suspension means freezing the validity of the period during the period of an “excuse” that prevents the injured party from filing a lawsuit. The excuse period is not counted within the statute of limitations, but rather the remaining period is completed once this excuse is removed.

According to Article 300 of the Civil Transactions Law, the period of non-hearing of the case shall stand in the following cases:

1. There is an excuse that makes it impossible to claim the right.
2. Negotiation in good faith: The existence of a negotiation in good faith between the two parties (the injured party and the person responsible for the damage) that exists when the statute of limitations approaches completion.
3. Moral impediment: The existence of a moral impediment (such as direct kinship or marital relationship) that prevents the injured party from claiming his right before the courts.

Interruption of the statute of limitations (zeroing the period and starting over)

Interruption means the complete lapse of the previous period due to a specific procedure, and the beginning of calculating a completely new statute of limitations from the date the effect of this procedure wears off.

According to Article 2 after 300 of the Civil Transactions Law, the period of non-hearing of the case shall be interrupted by one of the following procedures:

1. Judicial claim: Simply filing a lawsuit is considered conclusive of the statute of limitations, even if it is filed before an incompetent court.
2. Any other judicial action: any judicial action taken by the creditor (the injured party) to assert his right (such as requesting a precautionary seizure, submitting a request to issue a performance order, or entering a deduction in an existing lawsuit).
3. Debtor’s acknowledgment: If the person causing the damage acknowledges the right or compensation, explicitly or implicitly.

The effect resulting from the interruption: If the period for hearing the case is interrupted based on previous procedures (judicial claim or acknowledgment), a new statute of limitations begins similar to the first period (such as three years starting again) from the date of expiration of the effect resulting from the cause of the interruption. In certain cases, such as a court ruling against a person, the new statute of limitations becomes ten years.

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