Does prescription run from the date that the debt is due, or
when the creditor has adequate facts regarding the claim? The case
of Van Heerden and Brummer Inc v Bath, the Supreme Court
of Appeal ("SCA") provides some clarity,
and highlights the importance of acting promptly before your claim
is rendered extinguished by prescription.
Generally, prescription begins to run as soon as a debt is due.
There are, however, two main exceptions according to the
Prescription Act, 1969:
- Prescription does not commence until the creditor becomes aware
of the existence of a debt where the debtor willfully prevents the
creditor from coming to know of the existence of the debt; and
- A debt is not deemed to be due until the creditor has knowledge
of the identity of the debtor and of the facts from which the debt
arises, provided that a creditor will be deemed to have such
knowledge if they could have acquired it by exercising reasonable
care.
