Limitation Bill passes first reading

"Today is a great day for black letter law," Attorney-General Christopher Finlayson said after a bill streamlining the law around limitation periods for bringing civil legal proceedings passed its first reading in Parliament last night.

The Limitation Bill updates and streamlines the Limitation Act 1950 and the patchwork of case law about limitations periods.

The law of limitations provides a defence to legal claims that are brought after a certain period of time. It balances the interests of claimants, who want to enforce their rights in law, and the interests of defendants to have claims against them brought in a timely fashion.

Under the Limitation Bill, the limitation period for most "money claims" will be six years after the act or omission on which the claim is based. After this time period has expired a defendant can raise a limitation defence against the claim. Under the current Limitation Act periods vary for different types of claim.

"This bill makes limitation law more accessible and up to date," Mr Finlayson said.

"This reform is long overdue. The existing Act has been criticised by the judiciary, civil litigators, academics and other members of the legal profession. The Law Commission considered the Limitation Act in 1988, 2000, and 2007, and concluded that the limitation laws should be simplified and clarified."

There will be exceptions to the limitation period in the Bill, including some cases where minors are involved.

The new law will only apply to claims based on acts or omissions that occur after its commencement.

The Bill has been referred to the Justice and Electoral Committee for consideration.