Statute of repose

A statute of repose (sometimes called a nonclaim statute), like a statute of limitation, is a statute that cuts off certain legal rights if they are not acted on by a certain deadline.

Most courts hold that statutes of repose are distinct from statutes of limitation, though their effects are very similar. A statute of limitations focuses on requiring timeliness from an injured party, and thus has many exceptions where a delay is not the injured party's fault. But a statute of repose focuses on immunizing the alleged injuring party from long-term liability, and thus may even be based on elapsed time from an event other than the injury. Deadlines imposed by statutes of repose are enforced much more strictly than those of statutes of limitation. The operation of statutes of limitation can be avoided or tolled by a number of equitable factors, such as the minority of the injured party, or attempts by a tortfeasor to conceal evidence of responsibility. Some statutes of limitation begin to run only when the injured party discovers the injury.

As the U.S. Supreme Court noted, statutes of limitation and statutes of repose are often mistaken for the same thing, even by Congress in the enactment of federal statutes.

A statute of repose may impose a much stricter deadline than a statute of limitation. A statute of repose, in contrast to a statute of limitations, "is designed to bar actions after a specified period of time has run from the occurrence of some event other than the injury which gave rise to the claim."

Statutes of repose exist in a number of contexts. Some states have them in the context of products liability law. Probate law is another area where statutes of repose are found in many jurisdictions.

Simply put, the difference is that a statute of limitations is triggered by an injury, while a statute of repose is triggered by the completion of an act. An example of the statute of repose trigger is when a construction project is "substantially completed," meaning that just those items on a "punch list" remain.

As such, a statute of repose may bar a remedy even before a cause of action arises. For example, in a products liability action, a statute of limitation may apply to bar lawsuits a set number of years after the product causes an injury; but a statute of repose may also apply, barring an action after a certain number of years from the date when the product was initially delivered. For example, if a defective product sold to a consumer more than ten years ago injures someone, a ten-year statute of repose (which starts on the product's purchase date) might bar a claim even if the statute of limitation (which starts on the date of injury) does not.

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