Statute of Limitations
Key Takeaway
The legally prescribed time period within which a lawsuit must be filed. Missing a statute of limitations is the single most common cause of legal malpractice claims because it results in a complete loss of the client's right to pursue their case.
Definition
The legally prescribed time period within which a lawsuit must be filed. Missing a statute of limitations is the single most common cause of legal malpractice claims because it results in a complete loss of the client's right to pursue their case. Effective calendaring and docketing systems are the primary defense against this exposure.
Why This Matters for Law Firms
How claims are handled directly impacts your firm financially and reputationally. Understanding the claims process and related terminology helps law firm leadership make informed decisions when a claim or potential claim arises, and ensures you do not inadvertently jeopardize your coverage by failing to comply with policy requirements.
Example Usage in Context
When a partner receives a demand letter from a former client, the firm's risk manager might reference this: "We need to understand the statute of limitations requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
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