Reema Ashraf illustrates the key limitation periods which exist in the various laws of the UAE.

In brief:

  • In the UAE, limitation periods are not expressed in one comprehensive statute, but they are contained in various different laws.
  • Although limitation periods may vary in the UAE, much depends on the construction of the statute which governs that particular limitation period itself and whether or not it is definitive.
  • The importance of a limitation period cannot be underestimated as an entire claim may be time-barred if the action is not brought within the allocated time.

Limitation periods impose time limits within which a party seeking to bring a legal action or assert a right must do so. In other words, they set out the maximum time after a certain event that legal proceedings based on that event can be initiated. There is a very logical explanation for the necessity of a statute of limitation as in all likelihood, over time, evidence erodes, memories fade, records are disposed of and crime scenes are tampered with. Therefore, ideally, a lawsuit should be brought as close as possible in time to the alleged event.

In the UAE, limitation periods are not expressed in one comprehensive statute, but they are contained in various different laws. It is important to note that the limitation periods vary depending on the cause of action to be brought. The purpose of this article is to provide a one stop shop summarising the key time periods as it is usually the first question that any lawyer assessing a claim must determine.

Limitation periods begin either when a cause of action is deemed to have arisen, such as a breach of a contract or when the harmed party becomes aware of the harm, such as a tort (i.e. medical malpractice). If a claim is brought out of time and if the defending party raises a statute of limitation defence which is accepted by the courts, the claim will be dismissed.

General rules relating to time limitations are set out in the UAE Civil Code and as an overarching general rule, a claim is time-barred after 15 years, unless a specific provision states otherwise. There are, however, quite a few exceptions, many of which are contained in the UAE Civil Code itself and others can be found in the UAE Commercial Code, the code of law that governs commercial transactions, as well as other legislation.

Notwithstanding the many exceptions alluded to above, the following can be taken as a general guide to limitation periods in the UAE:

 

LIMITATION PERIOD1

STATUS

Contracts

15 years

Civil Code Article 473

Cheques

1-3 years2

Commercial Code Article 638

Insurance

3 years

Civil Code Article 1036

Tort (causing harm)

3 years

Civil Code Article 298

Building contracts (defects)

10 years

Civil Code Article 880

Carriage of goods by sea

1 year

Commercial Maritime Law Article 287(a)

Employment

1 year

Labour Law Article 6

Felonies

20 years

Criminal Procedure Article 20

Misdemeanours

5 years

Criminal Procedure Article 20

Contraventions

1 year

UAE Criminal Procedure Article 20

 

TYPES OF CRIMINAL CLAIMS

LIMITATION PERIOD

LAW

Felonies

20 years

Criminal Procedure Article 20

Misdemeanours

5 years

Criminal Procedure Article 20

Contraventions

1 year

UAE Criminal Procedure Article 20

Although limitation periods may be varied in the UAE, much depends on the construction of the statute which governs that particular limitation period itself and whether or not it is definitive. For example, Article 481 of the Civil Code states that the running of time shall be suspended if there is a "lawful excuse" as to why a claim was not brought. Generally, the interpretation of "lawful excuse" would mean incapacity on the part of the plaintiff or any other unforeseeable circumstance which is beyond the control of the plaintiff. Further, Article 487 of the Civil Code is interpreted to mean that a time-bar defence may be waived once the right arises and a time extension, if agreed to by the parties, is permitted, but a shortening is not. Article 488 of the same statute goes onto say that such a defence must be raised by one of the parties and cannot be raised by the judge of his own motion.

The importance of a limitation period cannot be underestimated as an entire claim may be time-barred if the action is not brought within the allocated time. Therefore, although limitation periods provide definite legal certainty, they may also prove to be an obstacle. Notwithstanding the guidance above, limitation periods must be assessed on a case by case basis depending on the facts and subject matter of each case.

Footnotes

1. Always consult a lawyer in order to decipher the correct commencement of a limitation period, as it can vary depending on the cause of action (i.e from when harm is caused or from knowledge of harm)

2. Depending on the status of the claimant.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.