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When Does a Director’s Signature Restart the Limitation Clock?

by admin

——Lessons from Manicaros v Commercial Images (Aust) Pty Ltd (in liq) [2024] QCA 40

The Queensland Court of Appeal has delivered an important decision that clarifies the circumstances in which a written acknowledgment of debt can revive an otherwise statute-barred claim. In Manicaros v Commercial Images (Aust) Pty Ltd (in liq) [2024] QCA 40, the Court closely examined whether signed financial statements, internal emails, and a filed affidavit constituted valid acknowledgments under sections 35(3) and 36 of the Limitation of Actions Act 1974 (Qld), thereby causing a fresh accrual of the limitation period.

For directors, shareholders, liquidators, and insolvency practitioners, the ruling serves as a stark reminder: documents prepared in the ordinary course of business — even those that appear routine — can carry significant and unintended legal consequences.

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