LEGAL PRINCIPLE: LIMITATION LAW – Limitation of Actions – When Time Begins to Run
PRINCIPLE STATEMENT
A cause of action accrues when the plaintiff becomes aware of the wrong and demand is denied. The limitation period runs from that date, not from an earlier date when the plaintiff had no knowledge.
RATIO DECIDENDI (SOURCE)
Per Mohammed, JSC, in Jallco Limited v. Owoniboys Technical Services Limited (1995) NLC-2701988(SC) at pp. 13--14; Paras E--A.
"It is crystal clear from the facts of this case that the respondent had not become aware of the wrong entries in his accounts until in 1980/81. That being the case, the right of action accrued when the respondent's demand to have his account credited was denied and refused, and this happened in 1980/81. The claim of the respondent is not therefore statute barred."
EXPLANATION / SCOPE
Time begins to run when the cause of action accrues. For some claims, accrual requires knowledge and demand. The principle applies to cases where the wrong is not immediately discoverable. The limitation period does not run while the plaintiff is unaware of the wrong. The rule protects plaintiffs from being barred before they could have known. The court will examine when the plaintiff became aware. The principle is an exception to the general rule of strict accrual.
