Home / Insights / Prescription deadlines and status quo agreements: how can they affect your rights? If the judgment cannot be agreed (for example. B, there is not enough time), an applicant will be subject to proceedings to stop the exploitation of the restriction and thus protect the prescribing position. Such proceedings are then often suspended (i.e. suspended) to allow the investigation to continue and to allow the parties to make progress through other methods of dispute resolution. Restriction is not the only question that arises for an applicant based on the effect of time. Some are simply practical: the memories of witnesses may become less clear, or at least less reliable; Documents can be transferred or destroyed. The accused may experience financial difficulties or bankruptcies and therefore cannot be worth prosecuting. However, there are two factors that can lead to extinction or have a significant influence on an application, even if the limitation period has not yet expired. As explained above, predictive thinking is essential when it comes to limitation issues. A lot of people leave him too late. It can be dealt with by mutual agreement or by immediate action in the event of an application for membership.
The parties must also consider all the effects that time expires may have, not just the effects of the statute on the statute of limitations. Since a status quo agreement is a contract that often spans several pages, it is important to remember the principles of treaty-compliant interpretation – that an objective approach must be adopted and that the document must be interpreted as a whole (see Arnold/Brittan AC 1619). It is therefore important to check whether the overall importance is clear to the objective viewer. The use of clear language and accurate data is essential. The suspension „freezes“ the time – that is, if there were 30 days left at the time of the status quo agreement for the opening of proceedings, the applicant would have that time to initiate proceedings at the end of the limitation period. The extension means that the applicant can initiate proceedings until the end, but not after the time limit of the capital contract. Most commercial legal systems have a certain law limiting legal action: over a period of time after the law, that is, becomes able to act, no action can be taken against them. The main English statute is the Limitation Act 1980.
In any case, you must ask yourself three questions: What is the period; When does it start And what happens when it ends? The Tribunal found that the effect of the agreements was suspensive and that, therefore, the procedure had been adopted in a timely manner. The judge`s suggestion that non-status quo agreements constitute a „self-inflicted complication“ in construction disputes was highlighted. He felt that it was much more appropriate when it came to limitation, just expose the procedure and omit it. While status quo agreements are commonplace in dispute resolution, they are not without complexity. Complications arise for prescribing purposes when, for example. B the chain of project agreements has a mixture of deeds and contracts and, therefore, the statute of limitations is different. In light of the Tribunal`s submissions, it would be important if a safeguard procedure was not adapted to a given scenario and that the parties were willing to get bogged down, would it be important for the parties to consider the importance of the agreement to suspend or extend the limitation period? These words sent shockwaves through the global financial system. But they also had an effect that was less noticed at the time, but which is becoming more and more important. Madoff`s subsequent arrest began with the delay in the time frame for the fraud charges to be filed.