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Contribution Claims – Time Limits Act Promptly

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Act Prompt or Risk the Claim being Statute Barred

It is often the case that defendants in the engineering and construction industry avail themselves of the 1978 Act as the harm / damage suffered and / or complained of is often contributed to by the act(s) and / or omission(s) of a party other than the defendant.  In the case of The Chief Constable of Hampshire Constabulary (HC) -v- Southampton City Council (SCC) [2014] EWCA Civ 1541, HC offered to settle a mesothelioma claim with one of its employee police officers by way of a Part 36 Offer.  This offer was accepted on 4 November 2010.  On 3 December 2012 HC commenced a contribution claim under The Civil Liability (Contribution) Act 1978 against SCC.

SCC argued that HC's claim was statute-barred under section 10(4) of The Limitation Act 1980, stating the limitation period of two years began on the date the Part 36 Offer was accepted, i.e. 4 November 2010.  HC sought to rely on section 10(3) of that Act stating that limitation did not start to run until the date of the judgment for costs, i.e. 15 September 2011.

The judge held that section 10(4) indeed applied and that it was the date that agreement was made to pay damages that is the relevant date so far as limitation is concerned and not the date at which costs are agreed which are in some cases agreed some considerable time after judgment / settlement of the damages claim.  Therefore HC's 1978 Act claim was statute-barred.

This case confirms that it is the date at which agreement is made to pay compensation for the damage caused that starts the limitation clock and not the date at which a defendant's liability for costs is determined.  

A defendant considering bringing an action under the 1978 Act needs to do so promptly.

Fisher Scoggins Waters is a leading construction, engineering and manufacturing litigation firm, specialising in disputes and disasters. For further information on this article or any of our litigation services, please contact us on: +44 (0) 207 993 6960.



 

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