AUSTRIA Law and Practice Contributed by: Bettina Knoetzl, Katrin Hanschitz, Dr Kirstin McGoldrick and Natascha Tunkel, KNOETZL HAUGENEDER NETAL GmbH
3.2 Statutes of Limitations Limitation Periods
cess fee arrangement is possible, if it constitutes only a certain portion of the fee agreement. 2.7 Time Limit for Obtaining Third-Party Funding Litigation funding is available at the commence- ment of litigation or during ongoing proceedings (eg, for appeals). It should be remembered that entering into a litigation funding agreement often takes several weeks, while procedural deadlines and limitation periods continue to run.
Statutes of limitations applied to civil suits are fixed by substantive law. The limitations periods generally commence when a right could have been first exercised and, as a general rule, are 30 years. However, due to numerous specified exceptions, most claims, including for damages, are subject to a shorter limitations period of three years. In the case of damage claims, the three- year period starts with knowledge of the damage and the identity of the party causing the damage. For contractual claims, the statute of limitations generally begins when the claim is due. Specific Rules There are numerous shorter or longer limita- tions periods. For example, a negligence claim against a managing board member may only be brought within five years. Interruption and Suspension There are different reasons for interruption and suspension of the limitations period. An acknowl- edgement, for example, interrupts the limitations period, and settlement negotiations suspend the expiry; the claim must be filed within a reason- able period after the negotiations giving rise to such tolling have failed. Procedural Aspects The fact that a claim is time-barred is an affirma- tive defence that must be raised by the defend- ant. It will not be imposed by the court sua sponte. 3.3 Jurisdictional Requirements for a Defendant Relevant Rules In domestic cases, the jurisdiction of Austrian courts is determined by the Law on Jurisdiction ( Jurisdiktionsnorm ). In most international cases,
3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct General Rule
There is no prerequisite to filing a lawsuit. Nev- ertheless, it may be advisable to notify a poten- tial defendant, demanding satisfaction of the dispute, because, for example, if the potential defendant immediately performs upon initiation of the lawsuit or does not dispute the claim, this can lead to a cost decision, requiring the “successful” plaintiff to bear the costs for the (unnecessary) proceedings. The defendant is not required to respond to such a letter. Exceptions In a limited number of cases relating to: • disputes between members of certain profes- sional groups subject to a code of conduct (eg, architects, lawyers, medical doctors), alternative dispute resolution (ADR) mecha- nisms are contemplated as a prerequisite to filing a lawsuit. If the plaintiff does not comply with applicable prerequisites, the claim may be rejected. • neighbourly disputes; • tenancy disputes; and
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