Statutes of limitations
Limitation rules
Civil proceedings are not subject to any general procedural limitation rules. Special procedural limitation rules are laid down in certain Norwegian statutes, such as the Taxation Act and the Public Limited Companies Act. Moreover, important limitation rules on monetary claims are laid down in the Limitation Act.
Monetary claims, including claims for damages that have a contractual basis, are subject to a three-year limitation period. The limitation period runs from the date on which the creditor/claimant first had the right to demand performance. For claims based on breach of contract, the limitation period starts on the day on which the breach occurred. This start date may vary, depending on the dispute and when the effect of the breach of contract occurred.
If the creditor has not pursued the claim because he or she lacked the necessary knowledge of the claim (or the necessary knowledge of the debtor), the period of limitation may be extended. If the conditions for extending the limitation period are fulfilled, the limitation period will expire, at the earliest, one year after the date on which the creditor obtained, or ought to have obtained, the necessary knowledge of the claim or the debtor. The limitation period cannot be extended on such grounds by more than 10 years (i.e. a total of 13 years).
Claims for damages which do not have a contractual basis are subject to a limitation period of 3 years from the date on which the injured party obtained, or ought to have obtained, the necessary knowledge of the damage and the tortfeasor – up to a maximum of 20 years from the date on which the damage was caused.
Interruption of limitation periods
Limitation periods may be interrupted in different ways:
Firstly, a limitation period is interrupted when the debtor has expressly, in words or deeds, acknowledged his or her debt to the creditor, for example by promising to pay or by paying interest.
Secondly, a limitation period is interrupted when the creditor initiates legal proceedings against the debtor in order to obtain a court judgment, arbitral award, judicial appraisal or similar ruling.
A third way of interrupting a limitation period is to bring the claim before a public administrative body with specific powers to rule on such a claim, or to bring the claim before a complaints body established by, or with the assistance of, the debtor or a trade association to which the debtor belongs.
Fourthly, if the creditor has a legal basis for enforcement of his or her claim, the limitation period is interrupted by instituting enforcement proceedings (distraint or full coverage).
Lastly, the creditor will interrupt the limitation time by petitioning for bankruptcy proceedings or probate estate settlement. If the debtor's estate is entered into receivership or subjected to judicial debt composition or probate settlement, the limitation period in respect of all claims notified by the expiry of the notification time limit is interrupted by such notice.
If the creditor has taken legal steps or brought the claim before a public administrative body in a timely manner against any one of multiple debtors, such claim shall be regarded as having been pursued in a timely manner against the other debtors if the creditor has – prior to expiry of the limitation period – given them due notice of the institution of proceedings in the manner prescribed in the Dispute Act and subsequently pursues his or her claim against the person concerned within one year of the case having been resolved by amicable settlement, judgment or otherwise.
Limitation effects
The main consequence of failing to observe a limitation period is that the creditor forfeits his or her right to performance of the claim. The limitation of a claim also includes any interest, dividends or similar supplementary performance. The limitation of a claim does not result in the creditor forfeiting his or her right to invoke said claim as a counterclaim, provided that i) such right has been agreed; or ii) the claim against which the counterclaim is invoked derives from the same legal context as the statute-barred claim and has arisen prior to said claim becoming statute-barred. The Limitation Act also contains specific rules on the lapsing of mortgages, etc., which will apply when a claim is statute-barred.
