The short answer
A statute of limitations is the deadline for filing a lawsuit. In Illinois, common deadlines include 10 years for written contracts, 5 years for oral contracts, property damage, and fraud, 4 years for most sale-of-goods claims, and 2 years for personal injury and claims against insurance producers.
Why it matters
A strong claim filed one day late is usually gone. Limitations questions also affect settlement value long before anyone files suit.
Where it fits in your case
As soon as you learn of a potential claim, and again before you let negotiations drag on.
What to expect
When the clock starts. Usually when the claim accrues, but Illinois often applies a discovery rule, starting the clock when you knew or reasonably should have known of the injury and its wrongful cause.
Contracts can shorten deadlines. Insurance policies and some commercial contracts set shorter periods to sue.
Construction claims. Illinois has a 4-year limitations period and a longer outer limit, called a statute of repose, for many construction claims.
Tolling. Some events pause the clock, such as certain insurance proof-of-loss filings. Others, like ongoing settlement talks, usually do not.
Federal and other states’ law. Different claims and jurisdictions may have different deadlines.
What to do now
Identify every potential claim and its likely deadline.
Check contracts and policies for shortened time limits.
Do not assume negotiations stop the clock.
Consider a written tolling agreement if talks will take time.
What we need from you
The key dates of the events, when you first learned of the problem, and any contracts or policies involved.
Common misconceptions
“We’re still negotiating, so the deadline is on hold.” Not unless there is a written tolling agreement or a specific legal rule.
“Written contracts always give us 10 years.” The contract itself, or the type of claim, may set a shorter period.