Limitation period

Limitation period / Verjährung

June 13, 2023

What does limitation mean?

In German civil law, the statute of limitations is understood as the loss of the possibility to enforce an existing claim due to the expiry of time. Until the time of the occurrence of the statute of limitations, the holder of the claim (the creditor of the claim) has the possibility to enforce his/her claim against the opposing party (the debtor). The claimant can sue the debtor for performance, for example, i.e. try to enforce the claim in court. If, on the other hand, the claim is time-barred, there is still a claim, but this claim cannot be enforced because of the passage of time. The mere passage of time prevents legal enforceability This should "finally" create legal peace. If an action is brought on the basis of a time-barred claim, the action must be dismissed.

However, the court does not examine the statute of limitations on its own; rather, the party concerned (usually the defendant debtor) must specifically object to the statute of limitations.

With regard to the statute of limitations, a distinction must be made between the statute of limitations under civil law and the statute of limitations under criminal law. While the civil statute of limitations refers to the point in time from which a claim can no longer be enforced, i.e. is no longer enforceable, the criminal statute of limitations refers to the point in time from which someone can no longer be prosecuted for a criminal act, tolerance or omission. In the following, we will only deal with the statute of limitations under civil law.

In principle, all civil law claims are subject to the statute of limitations, but for some claims, such as certain family law claims, the statute of limitations is excluded by law, section 194 (2) of the German Civil Code (BGB).

When does a claim become time-barred?

Only claims are subject to the statute of limitations. The limitation period as well as the beginning and end of the limitation period must be observed.

Limitation period

The limitation period applicable to the claim in question depends on the nature of the claim.

There are three different limitation periods, namely the regular limitation period, the ten-year limitation period and the 30-year limitation period.

Regular limitation period

According to section 195 BGB, the regular limitation period is three years. Accordingly, all claims become time-barred in three years, unless otherwise regulated - this is made clear by the word "regularly".

Ten-year limitation period for rights to a plot of land

Pursuant to section 196 of the German Civil Code, claims for transfer of ownership of real property as well as for the creation, transfer or cancellation of a right to real property or for a change in the content of such a right as well as the claims for consideration become time-barred after ten years.

30-year limitation period in special cases

According to section 197 BGB, special claims are subject to a 30-year limitation period. In particular, claims for damages due to intentional injury to life, body, health, freedom or sexual self-determination and claims for restitution of property are to be mentioned here.

Start of the limitation period

However, merely answering which limitation period is relevant for which claim does not answer the question of when the claim becomes time barred. For this, the above-mentioned limitation period must begin to run. The beginning of the limitation period is regulated in sections 199, 200, 201 BGB.

For the cases of the regular limitation period, the limitation period begins according to section 199 (1) BGB "at the end of the year" in which both the claim has arisen and the creditor acquires knowledge of the circumstances giving rise to the claim and of the person of the debtor or could have acquired such knowledge without gross negligence. This means that the commencement of the limitation period requires, on one hand, the time at which the claim arises, e.g. a conclusion of a contract, and, on the other hand, knowledge of the circumstances from which the claim arises and of the person of the debtor. Since section 199 (1) BGB focuses on the knowledge of the creditor of the claim, which usually cannot be determined objectively, the so-called "having to know", i.e. grossly negligent ignorance of the circumstances, is also sufficient for the commencement of the limitation period. "With the end of the year" means that the start of the limitation period is the last day of the year, i.e. 31 December.

For limitation periods other than the regular limitation period, maximum limitation periods are regulated.

According to section 199 (2) BGB, claims for damages based on injury to life, body, health or freedom become time-barred 30 years after the commission of the act, the breach of duty or the other event triggering the damage, irrespective of the occurrence and knowledge or grossly negligent ignorance. The beginning of the period for such claims for damages is therefore always the triggering event itself and not, as in the case of paragraph 1, knowledge of special circumstances.

Pursuant to section 199 subsection 3 BGB, other claims for damages, i.e. those not based on injury to life, body, health or freedom, become statute-barred according to no. 1 without regard to knowledge or grossly negligent ignorance in ten years from their accrual and according to no. 2 without regard to their accrual and knowledge or grossly negligent ignorance in 30 years from the commission of the act, the breach of duty or the other event causing the damage, whereby the earlier ending period is decisive. This means that if a claim within the meaning of section 199 (1) No.1 BGB has already arisen but there is no knowledge or grossly negligent ignorance (cf. subsection (1) No. 2 ), the maximum period is 10 years from the date on which the claim arose. If the claim has neither arisen nor there is knowledge or grossly negligent ignorance, it is time-barred within 30 years from the commission of the act, the breach of duty or the other event causing the damage (cf. (3) No. 2).

Pursuant to section 199 (3a) BGB, claims based on an inheritance or the assertion of which presupposes knowledge of a disposition by reason of death become statute-barred 30 years after the claim arose, irrespective of knowledge or grossly negligent ignorance.

Pursuant to section 199 (4) BGB , claims other than those under paragraphs 2 to 3a shall become statute-barred ten years after they arise, irrespective of knowledge or grossly negligent ignorance.

Section 199 (5) BGB provides that if the claim is directed at an omission, the infringement takes the place of the origin.

Pursuant to section 200 BGB, the limitation period for claims that are not subject to the regular limitation period begins with the accrual of the claim, unless a different beginning of the limitation period is determined.

The actual limitation period

Once the limitation period and the beginning of the limitation period have been determined for the respective claim, we return to the starting point of the question of when a claim is actually time-barred.

This requires a calculation of the time limit according to sections 187 cont. BGB is necessary. For limitation periods whose commencement is based on section 187 (1) BGB, section 188 (2) version 1 BGB is decisive for the end of the period.

For the regular limitation period, this results in the so-called "New Year's Eve limitation period". Since the limitation of the claim begins "at the end of the year", i.e. on 31 December of the respective year, but this day is not included in the calculation of the period according to section 187 (1) BGB, the limitation period according to section 188 (2) BGB ends again on 31 December, so that the claim is time-barred after New Year's Eve, i.e. in the new year.