statute of limitations

A statute which limits the right of a plaintiff to file an action unless it is done within a specified time period after the occurrence which gives rise to the right to sue.

A law that sets the time within which parties must take action to enforce their rights.

A law that sets the deadline by which parties must file suit to enforce their rights. For example, if a state has a five year statute of limitations for breaches of contract, and John breached a contract with Susan on January 1, 1995, Susan must file her lawsuit by January 1, 2000. If the deadline passes, the "statute of limitations has run" and the party may be prohibited from bringing a lawsuit; i.e. the claim is "time-barred." Sometimes a party's attempt to assert his or her rights will "toll" the statute of limitations, giving the party additional time to file suit.

A period of time within which legal action can be taken Note: Federal, state, and provincial statutes of limitation should be considered when developing the retention period of records.