A time-barred claim cannot even be set off

When a claim becomes time-barred, the first thought is usually a practical one: if I cannot demand it, at least I will deduct it from what I owe.

Under the CMR that is not possible.

What the Convention says

Article 32(4): a right of action which has become barred by lapse of time may not be exercised by way of counterclaim or set-off.

The provision is short and admits no exceptions.

Why it matters

Disputes with a carrier rarely end in court. Most of them end in negotiation, and the leverage in a negotiation is that both sides owe each other something.

Set-off is the cheapest and fastest way to recover an overcharge: the next invoice is simply paid in a reduced amount. No action, no costs.

Once the period has run out, that route closes together with the action. What remains is a request in negotiation, which the other side can simply refuse.

Other fields work differently

This rule is a feature of the CMR. In carriage by sea the position differs: the one-year period under the Hague and Visby Rules applies to claims for loss of or damage to the goods, while the carrier's claim for freight is not governed by them and is left to national law.

In some states the general rule allows a time-barred claim to be set off if the claims arise out of the same contractual relationship.

Which means the same question — can I simply deduct it — has different answers in road and in sea carriage.

The practical conclusion

The period matters not only for an action. It matters for negotiation too, because missing it costs you the only leverage that works without a court.

So findings should be ranked not by amount but by expiry date. Ten thousand that runs out in a month is more urgent than fifty thousand that is still good for another year.