Q&As

Where a contractual limitation clause prevents a claim from being brought after a certain period (less than the statutory limitation period), but is silent on the issue of counterclaims, would the prohibition on 'claims' be sufficient to prevent a party to proceedings bringing a counterclaim on the same basis—or are claims and counterclaims to be treated separately and distinctly?

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Published on LexisPSL on 28/07/2020

The following Construction Q&A provides comprehensive and up to date legal information covering:

  • Where a contractual limitation clause prevents a claim from being brought after a certain period (less than the statutory limitation period), but is silent on the issue of counterclaims, would the prohibition on 'claims' be sufficient to prevent a party to proceedings bringing a counterclaim on the same basis—or are claims and counterclaims to be treated separately and distinctly?

Where a contractual limitation clause prevents a claim from being brought after a certain period (less than the statutory limitation period), but is silent on the issue of counterclaims, would the prohibition on 'claims' be sufficient to prevent a party to proceedings bringing a counterclaim on the same basis—or are claims and counterclaims to be treated separately and distinctly?

We have found no authority on the interpretation of 'claims' in the context of a contractual limitation clause, and whether this includes counterclaims.

Whether counterclaims are to be treated as claims for the purposes of the limitation clause will depend on the construction of the clause. Given that the effect of time bars is to limit liability, the same principles of construction in respect of exemption clauses apply to contractual limitation periods

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