In Cerascope Ltd v Todagres S.A - Lawtel 12.9.08 the parties had entered into an agreement providing for Spanish law, pursuant to which the limitation period for claims was one year from termination. When a dispute arose, the Claimant sent a letter inviting the Defendant to mediate and saying that if the Defendant failed to reply it was the Claimant’s intention to commence ‘judicial actions’ to protect its interests. The issue for determination was whether the Claimant’s letter was sufficient to constitute an extra judicial act and therefore an interruption of the limitation period within the meaning of the relevant Spanish law.
It was held that, in theory, the limitation period could be interrupted by an extra judicial act so long as the act relied upon put the prospective defendant on notice of the nature of the claim sought to be interrupted. In the instant case, the Claimant's letter to the Defendant failed to make it clear that it intended to pursue a claim for statutory compensation or indemnity against it. Accordingly, the limitation period had not been interrupted and the Claimant's claim for compensation was statute barred.