Legal Processing

The basic premise of the law is that everyone must fulfill their obligations. If they do not, this can be done through the right be enforced. For example, have you loaned money and it is not repaid? Or your invoice is not paid? Then you can start collection proceedings. But, even if you are actually right, it may happen that the court does not award the claim. This is the case, for example, if there is estoppel.

What is litigation processing?

If there is litigation, you can no longer invoke your right. For example, your right to receive payment. That right is then ‘processed’. However, there is no such thing as estoppel. There must in fact be a situation in which the creditor, according to standards of reasonableness and fairness, cannot can no longer claim fulfillment. The requirement is that the creditor has behaved in such a way that the debtor was entitled to trust that no more performance would be claimed.

A right may have been processed without the claim being time-barred. The time limit for processing a right is also not defined. It all depends on the creditor's conduct. However, the courts do not readily go along with an appeal for estoppel. Thus, the bar is high.

When can you invoke estoppel?

There are a number of conditions attached to a successful claim for estoppel. Forfeiture of rights occurs when the creditor has behaved in a way that is not appropriate for asserting his right. There are cases where a creditor had automated reminders to pay for years. When he then went to court after all, the court ruled that the creditor's right had been processed. Because no concrete action had been taken for years and only automated notices were sent, the debtor was entitled to trust that no further action would be taken.

Legal processing or statute of limitations?

Legal processing and statute of limitations are two different legal concepts that both imply that a person can no longer assert his right. The main difference between estoppel and prescription is that estoppel arises from reasonableness and fairness. Statute of limitations arises from the law. In addition, prescription is invoked when a certain period of time has elapsed without an action having been taken to enforce the claim. With estoppel, on the contrary, an act is required of the creditor. Indeed, mere inaction is not sufficient.

Conclusion: when is there estoppel?

Even if a creditor has a legitimate claim per se, the debtor can sometimes evade his obligations. This is the case, for example, with estoppel or prescription. There can also sometimes be abuse of right. Which defense is best in your particular case depends on all the circumstances of the case. The trial lawyer at Lexys Lawyers can tell you more about that. They can also help prevent a claim from being time-barred or the right to collect it from being processed.