Facts
On 27 October 1974, a car driven by S. struck pedestrian [C.], who was injured. The Geneva police authority sanctioned the traffic rule violations with a fine that the driver did not contest. [C.] contacted Continentale, Compagnie Générale d'Assurances S.A., the liability insurer of the vehicle's owner, to obtain compensation for his damage. Continentale disputed the amount of the alleged damage, but waived the right to invoke the statute of limitations until 15 May 1979. It paid 100,000 francs to the injured party on 8 May 1979 as a final settlement. [C.] then brought an action for payment of 350,000 francs against Continentale, which raised the defense of statute of limitations.
The parties requested the court to rule on this issue as a preliminary matter. The Court of First Instance of the Canton of Geneva upheld the defense and dismissed the plaintiff's claims. The Court of Justice of the Canton of Geneva annulled the judgment and rejected the defense of statute of limitations. The defendant appealed against this decision.
Considerations
The Federal Court examined the question of whether the longer penal statute of limitations under Art. 83 para. 1 RTA applies to the direct action of the injured party against the liability insurer. It considered that the dominant doctrine favors the application of the penal statute of limitations to the direct action brought against the insurer.
The Federal Court also examined the question of the authority of the res judicata of a conviction for violation of traffic rules and its impact on the civil trial. It considered that a decision rendered by a penal authority with limited power of examination ratione materiae only gives rise to the application of the rule ne bis in idem within the limited framework of the authority's sphere of competence.
The Federal Court concluded that the longer statute of limitations under Art. 83 para. 1, 2nd sentence RTA applies not only to the action directed against the person criminally responsible, but also to the direct action…