Calculating limitation periods for claims in contract and tort

Can You Answer This?

Practice with real exam questions

In 2010, an architectural firm designed a new extension for Daniel's property, including weatherproofing the roof. Daniel only discovered significant structural problems with the roof in mid-2019, when leaks began causing noticeable damage. Upon further inspection, it emerged that the materials used were not installed to the required standard, suggesting potential negligence by the firm. Daniel now wonders if he can bring a negligence claim against the firm for the cost of repairs and any subsequent damage. He is particularly concerned about the timing rules and whether too much time has passed since the firm completed the work.


Which of the following statements best describes the limitation period for Daniel's potential negligence claim under these circumstances?

Overview

Limitation periods in civil litigation prescribe the timeframe within which a claimant must initiate legal proceedings. Rooted in statutory law, particularly the Limitation Act 1980, these periods are fundamental in both contract and tort claims. They establish temporal boundaries that ensure fairness by preventing stale claims and preserving the reliability of evidence. Knowing how to calculate these periods is critical for legal professionals, as failing to act within them can bar a claim regardless of its merits.

The Limitation Act 1980: The Starting Point

The starting point for calculating limitation periods is the Limitation Act 1980, which sets out the rules for how long claimants have to bring actions in England and Wales. This statute balances the rights of claimants seeking redress with the need for defendants to have certainty after a reasonable period. It serves as the legal system's way of signaling, "Time's up!" after a set duration.

Key provisions include:

  • Section 2: Outlines the general limitation periods for different types of claims.
  • Section 32: Provides for extensions in exceptional situations, such as when the defendant has concealed facts relevant to the claim.
  • Schedule 1: Lists the specific limitation periods applicable to various causes of action.

Limitation Periods in Contract Claims: Understanding the Basics

In contract law, claims generally must be brought within six years from the date of the breach. It doesn't matter when the claimant discovered the breach; the clock starts ticking from the moment the contract was broken.

For example:

Suppose a supplier agrees to deliver goods by July 15, 2023, but fails to do so. The limitation period begins on that date and expires on July 15, 2029. If the claimant doesn't commence legal action within these six years, they may lose the right to enforce the contract through the courts.

Addressing Complexities in Contract Claims

However, contract claims can involve aspects that affect the limitation period:

  1. Continuous Breaches: If a breach occurs over time, each breach may give rise to a new cause of action.

  2. Conditional Obligations: Where contractual obligations depend on a future event, the limitation period starts when that event occurs.

  3. Concealment of Breach: Under Section 32 of the Limitation Act 1980, if the defendant has deliberately concealed the breach, the limitation period may be extended. In such cases, the clock starts when the claimant discovers the concealment or could have discovered it with reasonable diligence.

Limitation Periods in Tort Claims: Exploring the Details

For tort claims, such as negligence, the general rule is that the claim must be brought within six years from when the damage occurs. Unlike contract claims, the limitation period in tort does not start from the date of the defendant's wrongful act if no damage has yet occurred.

Key Points to Consider:

  • The limitation period begins when the claimant suffers actual damage, not merely when the negligent act took place.

  • The claimant must know, or ought reasonably to know, that they have suffered damage caused by the defendant's actions.

Illustrative Case:

Consider a contractor negligently installs a roof in 2020, but the defect remains hidden until it leaks in 2022. The limitation period starts in 2022 when the damage becomes apparent, giving the claimant until 2028 to bring a claim.

Exceptions to the General Limitation Rules

While the six-year limitation period applies to many contract and tort claims, several important exceptions exist.

1. Personal Injury Claims

  • Time Limit: Three years from the date of injury or the date when the claimant became aware of the injury and its cause.

Factors affecting awareness include:

  • The seriousness of the injury.
  • The connection between the injury and the defendant's conduct.
  • The identity of the party responsible.

2. Latent Damage Provisions

Some damages aren't immediately apparent. For such latent damage, the law provides an extended period.

  • Time Limit: Three years from the date the damage is discovered, with an absolute limit of fifteen years from the negligent act or omission.

Example Scenario:

A heating system installed in 2020 malfunctions in 2025, but the damage isn't discovered until 2027. The claimant has three years from 2027 to bring a claim but cannot bring any claim after 2035, fifteen years after the installation.

3. Fraud, Concealment, and Mistake

  • Time Limit: Six years from the date the claimant discovered the fraud, concealment, or mistake, or could have discovered it with reasonable diligence.

Under Section 32, the limitation period may be postponed if the defendant has acted dishonestly. This provision acknowledges that a claimant cannot be expected to sue within the normal limitation period if they were unaware of the wrongdoing due to the defendant's actions.

The Consequences of Missing Limitation Periods

If a claimant does not commence proceedings within the applicable limitation period, the claim becomes "statute-barred." This means:

  • The claimant loses the legal right to pursue the claim in court, even if it is otherwise valid.

  • The defendant can raise the limitation period as a complete defense, leading to the dismissal of the claim.

  • The claimant may suffer financial loss without recourse.

For legal practitioners, missing a limitation period can have serious professional consequences, including negligence claims by their clients. It's akin to missing the last train—you might have a valid ticket, but if you arrive too late, you're not getting on board.

Proactive Strategies to Manage Limitation Periods

To avoid the pitfalls of limitation periods, parties should take proactive steps:

  1. Keep Detailed Records: Document all relevant dates, events, and communications meticulously. This practice ensures that important deadlines are not overlooked.

  2. Initiate Pre-Action Correspondence Promptly: Engage with the opposing party as soon as a potential claim is identified. Early communication can sometimes lead to resolution without litigation.

  3. Seek Legal Advice Early: Consult with legal professionals to determine the exact limitation period applicable to your situation. Limitation rules can be complex, and errors can be costly.

  4. Issue Protective Proceedings: If time is running short, issue a claim form to stop the limitation clock, even if negotiations are ongoing. This step preserves your right to proceed with the claim.

  5. Consider Standstill Agreements: Where appropriate, parties can agree to suspend the limitation period temporarily to allow for negotiations without the pressure of impending deadlines.

  6. Monitor Service Deadlines: After issuing a claim form, ensure that it is served within the required timeframe—typically four months within the jurisdiction. Failure to serve in time can nullify the protective effect of issuing the claim.

Judicial Discretion and Extensions of Limitation Periods

In certain circumstances, courts have the discretion to allow claims to proceed even after the limitation period has expired. This discretion is exercised cautiously and depends on several factors:

  • The Length and Reason for the Delay: Courts will consider why the claimant failed to act within the prescribed time.

  • Prejudice to the Defendant: If allowing the claim would unfairly harm the defendant, the court is less likely to extend time.

  • The Conduct of Both Parties: Courts assess whether either party contributed to the delay.

Special Provisions Under Section 33

For personal injury claims, Section 33 of the Limitation Act 1980 permits courts to disapply the limitation period if it is equitable to do so. Factors include:

  • Whether the claimant was under a disability.

  • The extent to which evidence is or is likely to be less reliable due to the delay.

  • The defendant's conduct after the cause of action arose.

It's important to note that such judicial discretion is not a safety net to be relied upon casually. Courts prioritize the principle of legal certainty, and extensions are granted only in exceptional circumstances.

Conclusion

Calculating limitation periods in contract and tort claims requires meticulous attention to statutory provisions and an understanding of specific exceptions. The interplay between the Limitation Act 1980's general rules and its specific sections, such as Section 32 concerning fraud or concealment, can significantly alter when the limitation period begins. For example, latent damage provisions acknowledge that some injuries or damages manifest over time, necessitating adjustments to standard time limits. Legal practitioners must accurately determine the applicable limitation period by analyzing the nature of the claim, the date of accrual, and any factors that might delay the start of the period. Accurate calculation ensures that a claimant preserves the right to pursue legal remedies within the prescribed timeframe.

By thoroughly understanding these principles, those preparing for the SQE1 FLK1 exam will be equipped to manage the complexities of limitation periods, ensuring compliance with legal timeframes and safeguarding clients' interests.

The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.

Job & Test Prep on a Budget

Compare PastPaperHero's subscription offering to the wider market

PastPaperHero
Monthly Plan
$10
Assessment Day
One-time Fee
$20-39
Barbri SQE
One-time Fee
$3,800-6,900
BPP SQE
One-time Fee
$5,400-8,200
College of Legal P...
One-time Fee
$2,300-9,100
Job Test Prep
One-time Fee
$90-350
Law Training Centr...
One-time Fee
$500-6,200
QLTS SQE
One-time Fee
$2,500-3,800
University of Law...
One-time Fee
$6,200-22,400

Note the above prices are approximate and based on prices listed on the respective websites as of December 2024. Prices may vary based on location, currency exchange rates, and other factors.

Get unlimited access to thousands of practice questions, flashcards, and detailed explanations. Save over 90% compared to one-time courses while maintaining the flexibility to learn at your own pace.

Practice. Learn. Excel.

Features designed to support your job and test preparation

Question Bank

Access 100,000+ questions that adapt to your performance level and learning style.

Performance Analytics

Track your progress across topics and identify knowledge gaps with comprehensive analytics and insights.

Multi-Assessment Support

Prepare for multiple exams simultaneously, from academic tests to professional certifications.

Tell Us What You Think

Help us improve our resources by sharing your experience

Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal