Claimants who sue the State often have to apply for condonation for late notice, because the State must be notified of an intention to sue within 6 months of an incident occurring, and many claimants are unaware of this special time restriction.
In Ndlovu v Member of the Executive Council for Police, Roads and Transport:
A plaintiff who suffers damage usually has 3 years within which to sue the defendant. But a claim against the State must be notified within 6 months of an incident occurring. This notification comes before the summons is served. If a claim is not notified within this time period (set out in the Institution of
The service of a summons on one surety does not interrupt the running of prescription in favour of a co-surety. Although the surety undertakes to be liable if the principal debtor does not pay the debt, the surety does not become a co-debtor with the principal debtor, nor does the surety become a co-debtor with
In South Africa, for example, under the Policyholder Protection Rules or the Short-term Ombud’s Rules the running of statutory prescription and time-bar limitation periods provided for in an insurance policy may be suspended while a dispute is resolved.
German law also provides for some circumstances in which the limitation period in an insurance coverage dispute
A claim for indemnification under a liability insurance contract only arises when liability to a third party for a certain amount has been established. For purposes of prescription, the debt becomes due when the insured is under legal liability to pay a fixed and determined sum of money. Until then a ‘claim’ for indemnification under
Where one party cancels a contract because of repudiation by the other party there is an obligation to make restitution and to pay money or deliver assets which were received as performance under the cancelled contract. The cancellation gives rise to a personal obligation to pay or deliver what was received. The same would apply
The Constitutional Court reaffirmed that a debt becomes due when it is immediately claimable or recoverable. Where the purchase price was not receivable under the Alienation of Land Act 1981 until the contract was recorded at the Deeds Office, prescription did not start to run until the recording of the contract took place.
It is
An arbitration award does not create a new debt for purposes of prescription. Parties who wait more than one year to have an arbitration award made an order of court with a 30 year prescription period may find that, when they attempt to enforce the award, the underlying debt has prescribed. Parties should deal expressly
The appellant municipality sold vacant immovable property to the respondent company subject to the condition that if buildings of a certain value were not erected on the property within three years from the date of sale, ownership of the property reverted to the municipality which could demand retransfer.
It was held that because the municipality
A lender relied on a 30 year extinctive prescription period applicable to ‘any debts secured by a mortgage bond’ under section 11(a)(i) of the Prescription Action 1969 but failed because the mortgage bond was not valid at the time summons was issued.
The lender sued the principal debtor and a number of sureties based on