Legal Definitions - limitations period

A limitations period refers to the specific timeframe, established by law, within which a person must initiate a legal claim or lawsuit after an event has occurred. If a lawsuit is not filed within this designated period, the legal right to pursue that claim in court is generally forfeited, regardless of the claim's merits. These periods are put in place to ensure fairness, prevent the filing of "stale" claims where evidence might be lost or memories faded, and encourage prompt resolution of disputes.

Here are some examples illustrating how a limitations period applies:

• Personal Injury Claim:

  Imagine Maria was injured in a car accident caused by another driver's negligence. State law might impose a two-year limitations period for personal injury claims. This means Maria must file her lawsuit against the at-fault driver within two years from the date of the accident. If she waits until two years and one month have passed, her claim will likely be dismissed by the court because the limitations period has expired, even if the other driver was clearly at fault.

• Breach of Contract:

  Consider a small business, "Creative Designs," that completed a website for a client, "Local Eatery," but Local Eatery failed to pay the agreed-upon fee. The state's limitations period for breach of contract claims might be four years. Creative Designs must file a lawsuit to recover the unpaid funds within four years from the date Local Eatery breached the contract (e.g., the due date for payment). If Creative Designs delays beyond this four-year window, they will likely lose their legal right to sue for the money owed.

• Property Damage from Faulty Construction:

  Suppose David purchased a new home, and three years later, he discovered significant structural defects caused by the builder's substandard work. Depending on the jurisdiction, there might be a limitations period of five years for construction defect claims, often starting from the discovery of the defect or the completion of construction. David would need to file a lawsuit against the builder within this five-year period to seek compensation for the repairs. If he waits six years, his claim could be barred, preventing him from recovering damages for the faulty construction.