Background of the case
A New York based consultancy company, Consulting Concepts International (“CCI“), contracted with a consumer protection body, Consumer Protection Associations (Saudi Arabia) (“CPA“) in June 2013.
The contract, whereby CCI was to provide research and other consultancy services to CPA, specified that CPA would pay CCI’s invoices within 90 days.
On 27 December 2019, CCI issued a claim against CPA in respect of unpaid invoices for the services provided under the terms of the contract. All of the invoices had been submitted to CPA by CCI before 27 December 2013, i.e., the date six years before the claim was issued, and related to services provided to CPA before that date. However, the 90-day payment period expired after that date for all but one of the invoices.
CPA successfully applied to strike out the claim on the basis that it was time barred, arguing that the cause of action accrued on the date that the services were completed, rather than (as CCI asserted) on the date 90 days from the date of each invoice.