Filter Precedents
Core Legal Principles
Lex Specialis Derogat Legi Generali
This fundamental principle means "a specific law repeals a general law." In Ethiopian insurance law, the Cassation Division consistently rules that the specific, shorter time limits in the **Commercial Code** take precedence over the longer, general time limits in the **Civil Code** for insurance-related matters.
Purpose of Limitation Periods
Statutes of limitations are not arbitrary deadlines. They serve critical functions to ensure a fair and efficient justice system.
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Promote Diligence: Encourages claimants to act promptly.
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Preserve Evidence: Ensures cases are tried when evidence is still reliable.
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Ensure Finality: Provides certainty and allows parties to move on.
The Journey of a Claim
Follow the typical lifecycle of a legal claim against the statute of limitations clock.
1. The Trigger Event
The incident that gives rise to a potential claim occurs (e.g., car accident, discovery of fraud).
2. Clock Starts Ticking
The limitation period begins. The start date is critical and varies. For subrogation, it's the **date of payment** to the insured. For false statements, it's the **date of awareness**.
3. Interruption?
An action like filing a lawsuit or a debtor's acknowledgment can interrupt the period. For insurance claims, the new period is **also 2 years**, not 10.
4. Deadline Reached
If no lawsuit is filed or interruption occurs before the period ends, the claim is **time-barred** and can no longer be legally pursued.