A statute of limitations is a law that places a time limit on pursuing a legal remedy in relation to wrongful conduct. After the expiration of the statutory period, unless a legal exception applies, the injured person loses the right to file a lawsuit seeking money damages or other relief.
Although people often speak of the statute of limitations,in fact there are many statutes which apply limitations periods to civil actions. Sometimes it can be difficult to keep track of the various statutes and their exceptions. Thus it is a very good idea for somebody who is concerned about losing their right to sue as a result of the expiration of the statutory limitations period to consult with a qualified lawyer, who can help determine which statute applies, and help preserve the right to recover damages.
The following periods represent a small sample of the statutory limitations periods in Alabama.
Personal Injury: 2 years from the date of injury.
Fraud: 2 years, commencing when the fraud was or reasonably should have been discovered.
Libel / Slander / Defamation: 2 years.
Injury to Personal Property: 6 years.
Product Liability: 1 year from the date of injury. An exception exists for cases involving the exposure to or ingestion of a harmful substance over time, in which case a plaintiff may commence litigation for one year following the date the injury was or should have been discovered.
Contracts: 6 years, or 10 years if under seal.
Wrongful Death: 2 years, extended by up to six months by the time between the death of the person and the commencement of administration of their estate.
Please note that it may be possible to bring multiple causes of action from a single incident of wrongful conduct, and thus even if it appears that the relevant statute of limitations has run it may remain possible to bring a different claim. Also, there may be an exception to the standard limitations period that applies to any given situation. The statutes summarized in this article are offered by way of example and the calculation of the limitations period can be significantly more complicated than a mere number suggests. If you wish to know how the statute of limitations applies to a specific situation, you should verify the statutory time period and its relevance to your situation with a qualified Alabama lawyer.
A statute of repose is different from a statute of limitations, in that after the statutory period has expired it is not possible to file a lawsuit even if an injury occurs after that time. For example, Alabama has a twenty year statute of repose for product liability claims, after which a claim cannot be filed against the manufacturer even if a design or manufacturing defect is responsible for an accident or injury.
A statute of limitations is said to start running at the time a claim accrues. Ordinarily, that is the time at which an injury is suffered.
Sometimes it is not reasonably possible for a person to discover the cause of an injury, or even to know that an injury has occurred, until considerably after the act which causes the injury. For example, an error in the drafting of a will might not be noticed until the will is being executed, decades after it was drafted, or a financial planner's embezzlement might not be noticed for years due to the issuance of false statements of account.
Alabama has a discovery rule for cases alleging fraud, or for matters involving the fraudulent concealment of the existence of a cause of action, but does not have a discovery rule for negligence claims.
In addition to late discovery, it may be possible to avoid the harsh result of a statute of limitation by arguing that the statute has been "tolled". When it is said that a statute is "tolled", it means that something has stopped the statute from running for a period of time. Typical reasons for tolling a statute of limitations include minority (the victim of the injury was a minor at the time the injury occurred), mental incompetence (the victim of the injury was not mentally competent at the time the injury occurred), and the defendant's bankruptcy (the "automatic stay" in bankruptcy ordinarily tolls the statute of limitations until such time as the bankruptcy is resolved or the stay is lifted).
Under Alabama law, with the exception of medical malpractice actions, when a statute of limitations is tolled on the basis of the victim's minority the statutory limitations period begins to run on the plaintiff's eighteenth birthday. For malpractice actions, all actions must be brought within four years regardless of the age of the victim, unless the victim is less than four years old in which case the action may be filed at any time before the victim's eighth birthday.
It is often possible to shorten a statutory limitations period by contract. For example, an employment contract might require that any claim relating to the employment relationship, including wrongful termination, be filed within one year of the claimed wrongful conduct. Courts often uphold these clauses, particularly in the context of business transactions, even though they provide for a shorter limitations period than the statute of limitations would otherwise apply.