Limitation period in the Netherlands

Under Dutch law, the limitation periods in a civil case are regulated as follows: there is a subjective limitation period of five years starting from the day after the day on which the injured party became aware of both the damage and the person liable for it. In addition, there is an objective limitation period of 20 years starting from the event that caused the damage. These periods are stipulated in Article 3:310(1) of the Civil Code (BW).

Moreover, a current limitation period can be interrupted by a written demand or a written communication in which the creditor unambiguously reserves the right to performance, as stipulated in Article 3:317 paragraph 1 of the Civil Code. The limitation period may also be interrupted by bringing a claim or making an act of prosecution, as referred to in Article 3:316 of the Civil Code, or by seeking a binding opinion, as referred to in Article 3:316(3) of the Civil Code. Infringement proceedings before a competition authority or out-of-court dispute resolution proceedings may also suspend or interrupt the limitation period.

At the end of last year, the Supreme Court in a ruling on prescription in the case of the professional liability of a fiscal consultant clarified when the limitation period in the Netherlands starts and until what time the creditor has to take action. Our attorneys in the Netherlands discuss the periods of limitation in this blog.

Statute of limitations under Dutch law

Under Dutch law, the statute of limitations (also known as limitation periods or “verjaring” in Dutch) sets time limits for bringing legal claims. Here are the key points regarding limitation periods in the Netherlands:

General Rule and Common Periods

The general rule under Dutch law is that a legal claim expires after 20 years, unless otherwise specified (Article 3:306 of the Dutch Civil Code). However, most causes of action are subject to shorter limitation periods:

• 5 years: This is the most common limitation period, applying to many types of claims including contractual obligations, periodic payments, undue payments, compensation for damages, and dissolution due to default.
• 1-2 years: Some claims have particularly short limitation periods.
• 20-30 years: Certain claims have extra-long limitation periods.

Specific Examples

• Contractual claims: The right to take action arises on the date the contract is breached, and a five-year limitation period typically commences from that date.
• Damage claims: The standard limitation period for damage claims is 5 years, starting from the day following the day on which the damage occurred and the claimant became aware of the responsible party.

Commencement of Limitation Periods

The starting point of a limitation period can vary depending on the type of claim. For instance:

• For contractual claims, it usually begins from the date of breach.
• For damage claims, it starts from the day after the damage occurred and the claimant became aware of the responsible party.

Absolute Limitation Period

For most claims arising from contracts or compensation for damages, there is an absolute limitation period of 20 years. This period begins on the day after the claim arose or the damage was caused and cannot be interrupted.

Practical Considerations

1. Identify the correct legal grounds: When interrupting a limitation period, it’s crucial to specify the correct legal grounds for liability. Changing the grounds in later litigation may result in the claim being time-barred.
2. Seek legal advice: Given the complexity of limitation periods and their potential impact on claims, it’s advisable to consult with a Dutch lawyer to determine the applicable limitation period and when it starts.
3. Act promptly: To avoid claims becoming time-barred, it’s essential to take action within the relevant limitation period.
4. Use clear language: When interrupting a limitation period, use unambiguous language to reserve your rights. Simply stating “subject to all rights and defenses” may not be sufficient to interrupt the limitation period.

Understanding and properly managing limitation periods is crucial in Dutch civil litigation. Failing to act within the prescribed time limits can result in the loss of legal rights, making it essential to seek professional legal advice when dealing with potential claims in the Netherlands.

Long and short limitation periods under Dutch law

According to Article 3:306 of the Dutch Civil Code, a legal claim expires after twenty years, unless the law provides otherwise. In fact, the law provides somewhat differently for all sorts of categories of legal claims, including legal claims for:

• to the performance of contractual obligations (Article 3:307 DCC)
• for payment of periodic claims (Article 3:308 DCC)
• for undue payment (Art. 3:309 DCC)
• compensation for damages (Article 3:310 DCC); and
• dissolution because of default or to remedy a default (Article 3:311 DCC).
• In addition, special limitation periods can be found outside Title 11 of Book 3 of the Civil Code.

Art. 3:306 DCC is thus a general rule with many exceptions. Among the exceptions, a short limitation period of five (5) years usually applies, starting from the time when the creditor becomes aware of the claim and the debtor.

Effects of prescription in the Netherlands

The consequences of prescription are far-reaching and irreversible. After a claim has become time-barred, it is no longer possible for a creditor to claim performance from the court. If the judge accedes to the claim, he will not be able to judge the content of the case. The judge will also not arbitrate whether it is fair or reasonable that the debtor does not have to comply or pay. In this situation, the judge will reject the claim and order the creditor to pay the costs of the proceedings.

Commencement of the limitation under Dutch law

In order to know when you have time to take action, you need to know when the limitation period in the Netherlands starts and which period applies. The law makes a distinction between different situations. In practice, the (short) limitation periods of five years for a claim for performance under a contract and a claim for compensation for damages are of particular importance. The limitation period for a claim for performance starts on the day after the claim has become due and payable. This is usually the due date of an invoice.

In the case of a claim for compensation of damage, the moment that the creditor becomes aware of both the damage and the person liable is decisive for setting the commencement of the limitation period in the Netherlands. This was the purpose of the aforementioned judgment of the Supreme Court, in which it was determined that the creditor’s awareness only exists when the creditor has had the opportunity to assess the soundness of the delivered performance. Therefore, the prescription of the claim in this case on the tax consultant only started when the creditor became aware that mistakes had been made in the advice.

Interruption of the limitation period under Dutch law

It is not always necessary to go to court directly to prevent the prescription of a claim under Dutch law. An acknowledgment from the debtor, a clear warning, or notification that the rights to performance are reserved will interrupt the limitation period and start a new period (in Dutch: “stuiting“). This period is usually as long as the original limitation period and therefore gives time to properly substantiate the claim, write to the debtor and, if necessary, present a well-prepared claim to the court.

Summarized, limitation periods under Dutch law can be interrupted or suspended in several ways:

1. Initiating legal proceedings.
2. Through a written warning or notification (for claims to perform an obligation).
3. By acknowledgment from the debtor.
4. Any other form agreed upon by the parties.

It’s important to note that interrupting a limitation period typically restarts the clock on the limitation period.

Dutch Lawyer in the Netherlands specializing in limitation periods

If you have any questions or require legal assistance regarding the statute of limitations under Dutch law, please don’t hesitate to reach out to our knowledgeable and dedicated team at our Dutch law firm.  Our Dutch lawyers are committed to providing exceptional legal services and personalized attention to address your unique needs. You can contact us through our website, via email, or by phone. Our friendly and professional staff will be more than happy to assist you and schedule a consultation with one of our expert lawyers in the Netherlands, for example a Dutch litigation solicitor or contract lawyer in the Netherlands in Amsterdam. We look forward to the opportunity to help you navigate the complexities of the legal landscape and achieve the best possible outcomes for your case.

Contact person: Remko Roosjen | attorney-at-law
Office number: +31 (0)20 – 210 31 38
remko.roosjen@maakadvocaten.nl

The content provided on this legal blog is intended for general informational purposes only and should not be construed as legal advice or a substitute for professional legal counsel. While we strive to ensure the accuracy and timeliness of the information presented, we cannot guarantee its completeness or applicability to your specific circumstances. We encourage you to consult with a qualified attorney for advice regarding your individual legal matters. The content on this blog may be subject to changes or updates without notice, and we disclaim any responsibility for any errors or omissions in the information provided.