Limitation periods for claims in Estonia

How long are the limitation periods?

• Contractual claims – three years (TsÜS § 146 lg 1) [1]; a claim under a contract for services due to a defect in a building – five years (TsÜS § 146 lg 2) [1]; ten years if the obligation was breached intentionally (TsÜS § 146 lg 4) [1].
• Unlawful damage – three years from when the entitled person learned or should have learned of the damage and of who caused it, but no later than ten years from the act that caused the damage (TsÜS § 150 lg 1 ja 3) [6].
• Claims arising from law – ten years from when the claim fell due, unless the law provides otherwise (TsÜS § 149) [7].
• Claims recognised by a court judgment – the limitation period for enforcement is ten years (TsÜS § 157 lg 1) [8].

When does the period start?

The limitation period starts when the claim falls due, unless the law provides otherwise (TsÜS § 147 lg 1) [9]. For a claim to pay agreed remuneration, however, it starts at the end of the year in which the claim fell due (TsÜS § 147 lg 3) [9]. So an invoice that fell due during a year starts to become time-barred only from the end of that year.

A claim arising from an ancillary obligation, such as late-payment interest, becomes time-barred together with the main claim, even if it would not yet be time-barred on its own (TsÜS § 144) [10].

What the law says

• „Tehingust tuleneva nõude aegumistähtaeg on kolm aastat.“ [1] (translation: the limitation period for a claim arising from a transaction is three years; TsÜS § 146 lg 1).
• „Pärast nõude aegumist võib kohustatud isik keelduda oma kohustuse täitmisest.“ [2] (translation: after a claim expires, the obligated person may refuse to perform the obligation; TsÜS § 142 lg 1).
• „Kohus või muu vaidlust lahendav organ võtab nõude aegumist arvesse ainult kohustatud isiku taotlusel.“ [3] (translation: a court or other dispute-resolution body takes limitation into account only at the request of the obligated person; TsÜS § 143).
• „Loobumine õigusest nõuda aegumise kohaldamist on tühine.“ [11] (translation: waiving the right to rely on limitation is void; TsÜS § 145 lg 3).

How to suspend or interrupt limitation?

Acknowledgement interrupts. Limitation is interrupted and starts again when the debtor acknowledges the claim (TsÜS § 158 lg 1) [4]. Acknowledgement may consist of part payment, paying interest, giving security or another act (TsÜS § 158 lg 2) [4]; a part payment made in enforcement proceedings does not interrupt it (TsÜS § 158 lg 3) [4].

An action suspends. Limitation is suspended by filing an action (TsÜS § 160 lg 1) [5]. Equivalent to an action are, among other things, filing a payment order application and submitting a claim in bankruptcy proceedings (TsÜS § 160 lg 2 p 1 ja 3) [5].

Agreement. The limitation period may be shortened by agreement, but the shortened period does not apply if the debtor breached their obligations intentionally (TsÜS § 145 lg 1) [11]. A period shorter than ten years may be extended by agreement, but to no more than ten years (TsÜS § 145 lg 2) [11].

What to do

1. Establish when the claim fell due and whether it arises from a contract, unlawful damage or the law – the period depends on it (TsÜS § 146; TsÜS § 147; TsÜS § 149; TsÜS § 150) [1] [9] [7] [6].
2. If the period is about to end, file an action or a payment order application – this suspends limitation (TsÜS § 160 lg 1 ja lg 2 p 3) [5].
3. Get the debtor to acknowledge the claim, for example by a part payment – limitation then starts again (TsÜS § 158) [4].
4. If a claim that may be time-barred is brought against you, raise limitation yourself: the court does not apply it on its own motion (TsÜS § 143) [3].

Frequently asked questions

Does a time-barred debt disappear?

No. Once a claim is time-barred, the debtor may refuse to perform (TsÜS § 142 lg 1) [2], but the court takes limitation into account only if the debtor asks for it (TsÜS § 143) [3].

When does an invoice start to become time-barred?

For a claim to pay agreed remuneration, the period starts at the end of the year in which the claim fell due (TsÜS § 147 lg 3) [9], and the limitation period for a contractual claim is three years (TsÜS § 146 lg 1) [1].

Does a part payment extend limitation?

Part payment is an acknowledgement of the claim, which interrupts limitation, and it starts again (TsÜS § 158 lg 1 ja 2) [4]. A part payment in enforcement proceedings does not interrupt it (TsÜS § 158 lg 3) [4].

Can a contract say that a claim never becomes time-barred?

Waiving the right to rely on limitation is void (TsÜS § 145 lg 3) [11]; the period may be extended to up to ten years (TsÜS § 145 lg 2) [11].