Limitation Periods: No More A Never Ending Story

All businesses need to know about an important change to limitation periods in the Turks and Caicos Islands (TIC) which could impact their intention to bring legal proceedings. The award-winning commercial and disputes lawyers at ParrisWhittaker are experienced in advising TCI businesses who are involved in disputes.

The expiry of a limitation period for civil proceedings is a crucial date for anyone considering bringing a legal action. Under new laws now fully in force, the limitation periods for civil actions have been defined. Once a limitation period has passed, it could be too late to commence proceedings. 

What’s the background?

In theory, where a dispute arises between individuals or organisations, the two parties will usually be willing to talk through the issues, consider any contract or other agreement that exists, negotiate a resolution and move on. In practice in TCI, many disputes have rumbled on for years without a settlement or solution being reached – and without formal proceedings being filed in court. 

Unlike many jurisdictions, there has been a notable absence of any laws in TCI limiting the period of time in which some forms of civil legal action must be filed in court. The result is that disputes become open-ended without a time limit to focus the parties’ minds on trying to reach a mutually acceptable resolution before filing suit.

What’s changed?

A new statute of limitations – the Limitations of Actions Ordinance 2021 – puts an end to the culture of perpetual disputes and came into effect on October 14 last year. However, a one-year grace period allowed proceedings for some years-old disputes to be filed, notwithstanding the changes. 

As of October 11 2022, the provisions are now fully in force and provides much-needed certainty for all parties. This means any outstanding disputes, such as commercial contract disputes, that are not yet subject to legal proceedings, will now be out of time.  The new time limits for disputes that may impact businesses include: 

• Libel or slander and malicious falsehood – 2 years
• Contract claims – 6 years
• Enforcement of financial awards – 6 years
• Recovery of land – 12 years
• Recovery of rent arrears – 6 years

Proceedings must now be issued within the time period legislated, ie from the time the cause of action accrued or (where relevant) the date of knowledge of an act or omission that have rise to a cause of action. 

What does this mean?

If you’ve any concerns about these time limits, it’s vital you seek urgent advice from specialist commercial disputes lawyers. The commercial team at ParrisWhittaker are experienced in acting promptly to protect their clients’ business interests where disputes have arisen. Get in touch with us promptly on +1.242.352.6112