When do German claims become statute barred?
Limitation periods (in German: Verjährungsfristen) impose time limits within which a party must bring a claim, or give notice of a claim to the other party. They are imposed by statute, primarily sections 194 to 218 German Civil Code (Bürgerliches Gesetzbuch, BGB). The standard limitation period is three years (section 195 BGB), thus significantly shorter than limitation according to English law. For many constellations there are – of course – exceptions to this standard limitation period: German law knows limitation periods ranging from two weeks up to 30 years. For an overview see German Wikipedia.
If the limitation period has already expired, the claim will be “statute barred” (Anspruch ist verjährt) and the defendant will be able to plead the defence of limitation (Einrede der Verjährung).
When does the clock begin to tick?
According to section 199 BGB, “unless another commencement of limitation is determined, the standard limitation period commences at the end of the year in which: (i) the claim arose and (ii) the obligee obtains knowledge of the circumstances giving rise to the claim and of the identity of the obligor, or would have obtained such knowledge if he had not shown gross negligence”.
Due to the “end of the year-rule” the standard limitation period can – in fact – be almost four years. If, for example, you slap some German in the face on 1 January 2013, that person can wait until 31 December 2016 to sue you, because the limitation commences at the end of 2013 and runs for three years.
How to stop the clock?
To avoid the claim become statute barred the claimant must either initiate court proceedings (see details here) or he must get written confirmation by the other party that the other party will not plead the defence of limitation (so called “Verzicht auf Verjährungseinrede”). If claimant has missed this there is still a chance to argue that the parties had already started to negotiate the claim (see section 203 BGB), but this is thin ice, especially if there is no correspondence to prove such serious negotiations.
Limitation periods may be varied or excluded by agreement. However, contractual terms which impose shorter limitation periods are subject to consumer protection laws and reasonableness tests, especially if used in standard terms and conditions (see sections 305 to 310 BGB).
Limitation Periods in German Criminal Law
The periods of limitation on presecution are found in section 78 Strafgesetzbuch (German Criminal Code). When and how these periods can be interrupted is stipulated in section 78c Strafgesetzbuch. More on German criminal law in this article here.
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If you search for German litigation experts who are fluent in English, visit the website of GP Chambers: www.GermanBarristers.com. GP Chambers, with its international expertise, is well equipped to advise and represent clients from the UK, the USA and other English speaking countries.
More information on civil litigation and evidence rules in German Courts of law and before German arbitration tribunals:
- Making a Court Claim for Money in Germany: It’s actually quite easy
- How expensive is a German Lawsuit?
- German Litigation Experts explain Civil Procedure Rules
- Standard of Proof in German Civil Litigation
- Does German Law of Torts know the Egg Shell Skull Rule?
- If you are bitten by a Dog in Germany
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The law firm Graf & Partners and its German-English litigation department GP Chambers was established in 2003 and has many years of experience with British-German and US-German business and corporate matters, including the representation of clients in M&A transactions, medical malpractice litigation, contentious probate matters or labour law disputes throughout Germany.
If you wish us to provide advice on German law or represent you in court or arbitration proceedings in Germany, please call German lawyer Bernhard Schmeilzl, LL.M. (Leicester) or Munich based English solicitor Elissa Jelowicki on +49 941 463 7070.