United Arab Emirates
The application of limitation periods is usually an issue of substantive law and therefore the law applicable to the particular contract or interaction of the parties. Advice should be sought on a case-by-case basis on the applicable limitation period and its expiry, as it can critically affect a party's ability to bring a claim.
Assuming that DIFC or ADGM law is the applicable law in respect of limitation periods, the general position is set out below.
Under DIFC law, the position is generally as follows:
- an action for breach of contract must be commenced within six years after the cause of action accrued;
- in respect of claims in negligence, occupiers' liability or misrepresentation, a cause of action arises on the earliest date on which the claimant knows or ought reasonably to know about the loss that gives rise to the cause of action, and an action must be commenced within 15 years of the date that the cause of action in fact arose; and
- where a cause of action arises as a result of fraud by the defendant, there is no time limit before which the action must be commenced.
The ADGM Regulations adopt selected pieces of English legislation, including the English legislation relating to limitation and in particular adopts the Limitation Act 1980 and the Foreign Limitation Periods Act 1984. The position is, generally, as follows:
- an action for breach of contract must be brought within six years of the date of the breach of contract;
- an action for breach of deed must be brought within 12 years of the breach of the obligation in the deed;
- an action in tort/negligence generally, must be brought within six years from the date the damage is suffered;
- an action in negligence, and in respect of latent damage, has to be brought within the later of six years from the date the damage occurred or three years from the date on which the claimant had the requisite knowledge and the right to bring such an action; and
- an action in fraud has to be brought within six years from when the claimant discovered the fraud, or when they could, with reasonable diligence, have discovered it.