My Views on the Application of Suspension of the Statute of Limitations in COVID-19 Pandemic Claims
Time:
2020-04-02
Author:
He Fei
Source:
Guangxi Tongwang (Wuzhou) Law Firm
Visits:
88
Currently, the positive trend in domestic COVID-19 prevention and control continues to consolidate, and the resumption of work and production is being actively and orderly promoted. Litigation work that was previously affected by the epidemic is gradually returning to normal, and some newly filed civil and commercial cases in the court will encounter the issue of the statute of limitations. The defendant raises the defense that the plaintiff's lawsuit exceeds the statute of limitations, and the plaintiff often responds with the suspension of the statute of limitations.
● About the Suspension of the Statute of Limitations
Article 194 of the "General Principles of Civil Law" stipulates: "During the last six months of the statute of limitations, if the right to claim cannot be exercised due to the following obstacles, the statute of limitations shall be suspended:
(I) Force majeure;
(II) A person without or with limited capacity for civil conduct has no legal representative, or the legal representative dies, loses capacity for civil conduct, or loses the power of agency;
(III) The heir or estate administrator has not been determined after the inheritance begins;
(IV) The obligee is controlled by the obligor or other persons;
(V) Other obstacles that prevent the obligee from exercising the right to claim.
The statute of limitations period expires six months after the date on which the cause of the suspension of the statute of limitations is eliminated.
Obviously, if the COVID-19 epidemic constitutes force majeure, the suspension of the statute of limitations can be claimed.
Article 17 [Suspension of the Statute of Limitations] of the Guiding Opinions on Properly Hearing Civil Disputes Related to the COVID-19 Epidemic issued by the First Civil Division of the Guangxi Zhuang Autonomous Region Higher People's Court stipulates: "If the obligee fails to exercise civil rights in time due to the adoption of COVID-19 prevention and control measures during the last six months of the statute of limitations, the suspension of the statute of limitations shall be applied in accordance with Article 13 of the Law of the People's Republic of China on Responding to突发事件 (Sudden Incidents) and Article 194 of the General Principles of Civil Law of the People's Republic of China. The statute of limitations period expires six months after the date of 解除防控措施 (lifting of prevention and control measures)."
So, how to correctly understand and apply the COVID-19 epidemic to claim the suspension of the statute of limitations? The author believes that the following three points should be grasped:
First If the COVID-19 epidemic occurs within six months before the expiration of the statute of limitations, the suspension of the statute of limitations may be claimed. However, if the COVID-19 epidemic occurs more than six months before the expiration of the statute of limitations, the statute of limitations will not be suspended even if the COVID-19 epidemic continues until within six months before the expiration of the statute of limitations.
Second If a party cannot prove that the COVID-19 epidemic affected the exercise of rights, the provisions on the suspension of the statute of limitations will not apply. For example, Xu Xu, the author of the article "Analysis of the Statute of Limitations during the COVID-19 Epidemic" published on China Court Network, proposed that "the key to whether this epidemic constitutes a suspension of the statute of limitations lies in whether the epidemic has caused an insurmountable impact on the parties." Therefore, the parties should pay attention to collecting evidence to prove that they cannot exercise the right to claim in time due to the impact of the epidemic; otherwise, they may face the adverse consequences of not being supported.
Third Regarding when the statute of limitations period continues to be calculated after the cause of the suspension of the statute of limitations is eliminated, the Guangxi High Court stipulates that "the statute of limitations period expires six months after the date of 解除防控措施 (lifting of prevention and control measures)," clarifying that the statute of limitations period continues to be calculated from the date of 解除防控措施 (lifting of prevention and control measures). However, the parties should pay special attention to the relevant regulations of the province, region, or city where the court hearing the case is located. For example, Article 6 of the Guiding Opinions of the Guangdong Provincial High People's Court on Several Issues Concerning the Trial of Commercial Cases Involving the COVID-19 Epidemic stipulates: "For the recognition of the epidemic or prevention and control measures as force majeure, the start and end time of the force majeure shall be determined based on the actual impact of the epidemic or prevention and control measures on the performance of the contract in specific cases. Generally, the time when the provincial government starts and ends the response to major public health emergencies that have a substantial impact on contract performance can be used to determine the time."
The author believes that proposing the suspension of the statute of limitations should be a last resort, and whether it can be established needs to be determined by the court based on the specific circumstances of the case. For the sake of prudence, the parties to a dispute whose statute of limitations period is about to expire should file a lawsuit as soon as possible when conditions permit, or take other legal means to assert their rights.