06:57 | 06/01/2023

Vietnam: How long is the prescriptive period for initiating legal action claiming compensation for damage? What are the latest instructions on determining the prescriptive period for initiating legal action?

"How to determine the prescriptive period for initiating legal action claiming compensation for damage in Vietnam?" - asked Mr. Tung (Kien Giang)

Pursuant to Article 149 of the Civil Code 2015, the prescriptive periods in civil activities are prescribed as follows:

Prescriptive periods
1. Prescriptive period means a time limit provided by law where, upon its expiry, a legal consequence arises as prescribed by law.
The prescriptive periods shall apply as prescribed in this Code and relevant laws.
2. A court only applies provisions in terms of prescriptive periods at the request of a party or the parties provided that such request is filed before the first trial court of first instance gives a judgment and/or a decision on settlement.

The person benefiting from the application of the prescriptive period may refuse to apply such prescriptive period unless such refusal is aimed at evading his/her obligations.

Accordingly, there are currently 04 types of prescriptive periods, including:

- Prescriptive period for civil rights;

- Prescriptive period for exemption from civil obligations;

- Prescriptive period for initiating legal action;

- Prescriptive period for requesting to settle civil cases.

Regarding the prescriptive period for initiating legal action, Clause 3, Article 150 of the Civil Code 2015 provides as follows:

Types of prescriptive periods
...
3. A prescriptive period for initiating legal action is the time limit within which an entity has the right to initiate legal action to request a court to resolve a civil case to protect the infringed legal rights or interests of the entity. When such time limit expires, the right to initiate such legal action shall be lost.

From the above provisions, the prescriptive period for initiating legal action claiming compensation for damage is the period during which the aggrieved party has the right to initiate legal action to request a court to claim compensation for damage.

However, Clause 3, Article 150 of the Civil Code 2015 also states that when the prescriptive period expires, the right to initiate such legal action shall be lost.

The prescriptive period for initiating legal action claiming compensation for damage in Vietnam is determined in Article 588 of the Civil Code 2015 as follows:

The prescriptive period for initiating legal action claiming compensation for damage
The prescriptive period for initiating legal action claiming compensation for damage shall be 03 years from the date on which the legal rights or interests of an individual, legal entity or other subject were infringed.

Thus, the prescriptive period for initiating legal action claiming compensation for damage shall be 03 years from the date on which the legal rights or interests of an individual, legal entity or other subject were infringed.

Pursuant to Resolution 02/2022/NQ-HDTP of the Council of Judges of the Supreme People's Court guiding a number of provisions on liability for non-contractual compensation for damage of the Civil Code 2015.

The determination of the prescriptive period for initiating legal action is guided by Article 5 of Resolution 02/2022/NQ-HDTP as follows:

- The non-contractual compensation for damages arising before or after January 1, 2017 (the effective date of the Civil Code) and the litigant initiating the lawsuit from January 1, 2017, the statute of limitations for initiating a lawsuit to claim damages is 03 years from the date on which the claimant knows or must know the right, his legitimate interests are violated;

- The time when a person has the right to request to know that his/her legitimate rights and interests are infringed is when he/she realizes or can confirm that his/her legitimate rights and interests are infringed.

For example, on July 02, 2022, A discovered that fish in his pond were killed en masse. A suspects that the cause is due to the wastewater source from house B, so A asks the environmental inspection agency to conduct an assessment of the cause.

On August 15, 2022, A received the results of the assessment that the main cause of damage was the wastewater source from house B. In this case, the time A knew his rights and interests were violated was August 15, 2022;

- Where a person has the right to request to know that his/her legitimate rights and interests are infringed, under normal conditions and circumstances, if damage occurs, he/she knows his/her legitimate rights and interests are infringed or in case the law provides for it.

+ Example 1: On June 20, 2022, A injured B, and on the same day B was hospitalized for injury treatment. In this case, the time when B must know his rights and interests are violated is June 20, 2022;

+ Example 2: A assigns B to take care of A's car under the contract to keep the property. During the term of the contract, cars are destroyed by C. At the time the car was damaged, B was not present at the site of the damage but B still had to know about the damage that occurred. The time B must know is the time C does damage.

Thus, the determination of the prescriptive period for initiating legal action claiming compensation for damage shall comply with the above-mentioned instructions of the Council of Judges of the Supreme People's Court.

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