Time’s up!

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In Australia, our Limitation Acts impose strict time limits for commencing legal proceedings.

Time limits vary depending on the type of matter and the jurisdiction.

Limitation periods (often referred to as ‘statutes of limitations’) are a statutory barrier to prevent individuals or businesses from pursing claims after a period of time has passed since the ‘cause of action’ arose. The primary purpose being to balance the rights of parties and the effective administration of justice and, in practical terms, to ensure finality to potential claims.

Civil Claims

Generally speaking, civil claims have a limitation period of 6 years from the date of the cause of action.

What is the relevant limitation period applicable to building claims in NSW?

To work out the applicable limitation period, start with the legislation that gives rise to the action (e.g. defective building work in NSW would be the Home Building Act 1989 (NSW) and/or the Design and Building Practitioners Act 2020 (NSW) (DBPA)). If there is no relevant legislation, look in the limitation act for your relevant state or territory:

  • New South Wales – Limitation Act 1969(NSW) (LA)
  • Australian Capital Territory – Limitation Act 1985 (ACT)
  • Queensland – Limitation of Actions Act 1974(QLD)
  • Victoria – Limitation of Actions Act 1958(VIC)
  • Tasmania – Limitation Act 1974 (TAS)
  • Northern Territory – Limitation Act 1981 (NT)
  • South Australia – Limitation of Actions Act 1936 (SA)
  • Western Australia – Limitation Act 2005 (WA)

These Acts may not apply if the limitation period for a specific cause of action is prescribed by another Act.

At times, more than two pieces of legislation must be considered to determine a limitation period. In building defect claims, the statutory duty of care is not merely the statutory warranty periods under section 18E(1)(b) of the Home Building Act 1989 (NSW) of 6 years for major defects and 2 years in any other case. Under section 37 of the DBPA a person who undertakes construction work has a duty to exercise reasonable care to avoid economic loss caused by defective construction work.  Section 41 provides that the applicable limitation is 6 years under the LA and subject to the 10 year longstop under section 6.20 of the Environment Planning and Assessment Act 1979 (NSW).

The table below sets out some of the more common causes of actions (COA) and corresponding limitation periods in NSW.

 

Implications for individuals and businesses

Being informed of the limitation period for a cause of action is essential as it can have significant implications on the rights and obligations of individuals and businesses.  If a limitation period expires, it may be difficult or impossible to commence legal proceedings, even if a case has merit.

Understanding the limitation periods for potential causes of action allows claimants to bring a claim within time.

Bradbury Legal is a specialist building and construction law firm. If you or anyone you know requires advice or assistance regarding a potential claim and the application of limitation periods, reach out to us on (02) 9030 7400, or email us at [email protected] to see how we can assist you.

 

[1] Section 14(1)(a) of the LA 

[2] Section 14A of the LA 

[3] Section 6.20(1) of the EPAA

[4] Competition and Consumer Act 2010 (Cth), Schedule 2 Section 18; section 14(1) of the LA 

[5] Section 14(1)(b) of the LA 

[6] Section 14(1)(b) of the LA 

[7] Section 16 of the LA