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August 02, 2018 | News August 2018 | Continued developments regarding time limitation of claims arising out of consumer contracts

On February 7, 2018, the Constitutional Court of the Slovak Republic held that Section 5b of Act No. 250/2007 Coll. on Consumer Protection (effective as of May 1, 2014), which reads as follows:

“The authority ruling on claims arising out of a consumer contract takes into account, even without a petition, the impossibility to exercise a right, the weakening of the seller’s claim vis-à-vis the consumer, including the lapse of a limitation period, or any other legal obstacle or legal ground that prevent the seller to receive, or prevent awarding to the seller, performance by the consumer even if otherwise it is necessary for the consumer to invoke those facts.”

is unconstitutional.

The reason was that the provision unilaterally favors the debtor – consumer, since the court (or other authority) is required to take into account the weakening of the seller’s claim vis-à-vis the consumer, including the time limitation of the claim. This provision is in contradiction with the principle of impartiality of Slovak courts, and thus with the principle of the rule of law.

The Ministry of Justice of the Slovak Republic responded to this finding of the Constitutional Court and submitted a bill supplementing Act No. 40/1964 Coll., the Civil Code, to the inter-ministerial commentary proceedings. Under the proposed amendment, it is not possible to enforce or validly guarantee the (supplier’s) right under a consumer contract which is time-barred.

In its explanatory memorandum, the Ministry states:

“Voluntary repayment of a debt is still possible. The impossibility of exercising a time-barred right under a consumer contract reflects the dynamism of the consumer environment and will therefore justifiably encourage creditors to recover their claims as soon as possible.”