Pre-action considerations and steps - Calculating limitation...

Learning Outcomes

This article explains the fundamental principles governing limitation periods in civil claims under English law, focusing on contract and tort actions. After studying this material, you should understand the significance of limitation periods, the general time limits applicable under the Limitation Act 1980, and how to identify the date from which time starts to run for different types of claims. You will also learn about key exceptions and special rules, such as those for personal injury, latent damage, and cases involving fraud or disability. The analysis includes practical issues that affect whether time is stopped or postponed, such as issuance and service of the claim form, contracts made by deed, and acknowledgment or part-payment of debts. You should be able to distinguish accrual rules in contract (breach) and tort (damage), apply the “date of knowledge” regime for personal injury and latent damage, recognise when limitation is postponed for fraud, concealment or mistake, and identify when time is suspended for minors or protected parties. This knowledge is key for advising clients on the viability of their claims and for meeting procedural deadlines in practice.

SQE1 Syllabus

For SQE1, you are required to understand limitation periods as a critical pre-action consideration, be able to calculate the relevant periods for claims in contract and tort, and recognise situations where standard time limits may be varied or postponed, with a focus on the following syllabus points:

• The effect of limitation periods expiring (claims becoming statute-barred).
• The standard limitation periods for contract and tort claims under the Limitation Act 1980.
• How to determine the date of accrual for causes of action in contract (date of breach) and tort (date of damage).
• The specific rules for personal injury claims, including the concept of 'date of knowledge'.
• The provisions relating to latent damage.
• The effect of fraud, concealment, mistake, and disability on limitation periods.
• The consequence of failing to issue proceedings within the relevant limitation period.
• The 12-year period for contracts made by deed (LA 1980, s 8).
• How acknowledgment in writing or part-payment can restart time for debt claims (LA 1980, ss 29–30).
• Deemed service and validity of service periods under the CPR and how these interact with limitation.
• That defamation claims generally have a one-year limitation (outside the main scope here, but relevant to tort timing).

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. What is the standard limitation period for a claim based on breach of a simple contract?
   1. 3 years from the date of breach
   2. 6 years from the date of breach
   3. 6 years from the date the claimant discovered the breach
   4. 12 years from the date of breach
2. In a claim for negligence (excluding personal injury), when does the limitation period generally start to run?
   1. From the date of the negligent act or omission
   2. From the date the contract (if any) was made
   3. From the date the claimant suffered actionable damage
   4. From the date the claimant realised the defendant was negligent
3. What is the limitation period for a personal injury claim?
   1. 6 years from the date of injury
   2. 3 years from the date of the accident
   3. 3 years from the date of injury or the claimant's date of knowledge, whichever is later
   4. 6 years from the claimant's date of knowledge

4. True or false? The Limitation Act 1980 provides that the limitation period can be postponed if the defendant deliberately conceals a relevant fact.

Introduction

Before commencing litigation, a solicitor must determine whether the potential claim is within the relevant statutory time limit. This time limit is known as the limitation period. The primary statute governing these periods in England and Wales is the Limitation Act 1980. Missing the limitation deadline has severe consequences: the claim becomes statute-barred, meaning the defendant has a complete defence, regardless of the claim's merits. Calculating the limitation period accurately is therefore a fundamental aspect of pre-action case analysis and risk management. This involves identifying the correct limitation period for the specific cause of action and establishing the precise date from which time starts to run, followed by issuing and serving proceedings in accordance with the CPR to ensure time is effectively stopped.

Key Term: Limitation Period
The statutory time limit within which legal proceedings must be commenced. Failure to commence proceedings within this period generally prevents the claimant from pursuing the claim.

Key Term: Statute-barred
A claim that cannot be enforced because the relevant limitation period has expired.

Key Term: Limitation Act 1980
The primary statute setting out the time limits for bringing different types of civil claims in England and Wales.

Key Term: Protective Issue
Issuing a claim form close to limitation to stop time running, with service to follow within the CPR validity period (usually four months within the jurisdiction).

General Limitation Periods

The Limitation Act 1980 sets out different limitation periods for different types of claims. For the purposes of SQE1, the most important are those relating to contract and tort.

Contract Claims

For claims founded on simple contract (contracts not made by deed), the limitation period is six years from the date on which the cause of action accrued (Limitation Act 1980, s 5).

Key Term: Cause of Action Accrued (Contract)
In contract claims, the cause of action generally accrues on the date the breach of contract occurs, regardless of when the claimant discovers the breach or suffers damage.

This means the clock starts from the moment the breach happens. For example, if a party fails to make a payment due on 1 June 2023, the limitation period starts on that date and expires at the end of 31 May 2029. Where contracts are executed as deeds, the limitation period for actions “founded on a specialty” is 12 years from accrual (LA 1980, s 8).

Key Term: Contract by Deed
A contract executed as a deed (a specialty). Actions founded on a specialty generally have a 12-year limitation period from accrual (LA 1980, s 8).

Debt claims have additional features. An acknowledgment of the debt in writing signed by the debtor, or part-payment, restarts the limitation period from the date of the acknowledgment or payment (LA 1980, ss 29–30).

Key Term: Acknowledgment and Part Payment
For debt claims, a signed written acknowledgment by the debtor or part payment resets the limitation period to run from the date of the acknowledgment or payment (LA 1980, ss 29–30).

Worked Example 1.1

A surveyor provides a negligent property survey report in March 2022. The client purchases the property in April 2022 based on the report. In July 2024, defects missed by the surveyor become apparent, causing the property's value to decrease. When does the limitation period start?

Answer:
The cause of action in tort (negligence) accrues when actionable damage is suffered. Here, the damage (decrease in property value due to the discovered defects) occurred in July 2024. Therefore, the six-year limitation period starts in July 2024. The claimant has until July 2030 to issue proceedings.

Tort Claims

For claims founded on tort (excluding personal injury, latent damage, and defamation), the limitation period is also six years from the date on which the cause of action accrued (Limitation Act 1980, s 2).

Key Term: Cause of Action Accrued (Tort)
In tort claims (like negligence), the cause of action generally accrues when actionable damage is suffered by the claimant as a result of the tortious act, not necessarily when the wrongful act itself occurred.

A valuable distinction is that time starts on damage, not on breach. In some torts, such as a continuing nuisance, fresh causes of action can accrue as the interference continues. Defamation is outside our principal scope but note it has a one-year limitation period (with limited discretion to extend).

Worked Example 1.2

A house is built with defective foundations in 2010 due to the builder's negligence. Cracks (damage) first appear in 2018. The homeowner discovers the cause of the cracks (knowledge) in 2021. When does the limitation period expire?

Answer:

1. Standard tort period: 6 years from damage = 2018 + 6 years = 2024.
2. Latent damage: Potentially 3 years from the starting date (date of required knowledge) under s 14A; here 2021 + 3 years = 2024.
3. Longstop: 15 years from negligent act = 2010 + 15 years = 2025. The claimant has until the later of the standard period (2024) or the s 14A period (2024), subject to the s 14B longstop (2025). In this case, the limitation period expires at the end of 2024.

Specific Limitation Periods and Exceptions

The general six-year rules for contract and tort are subject to important exceptions and specific rules for certain types of claims or circumstances.

Personal Injury Claims

Claims involving damages for personal injury have a shorter limitation period. Under s 11 of the Limitation Act 1980, the period is three years from:

• the date on which the cause of action accrued (the date of injury); or
• the date of knowledge (if later) of the person injured.

Key Term: Date of Knowledge (Personal Injury)
The date on which the claimant first had knowledge: (a) that the injury was significant; (b) that the injury was attributable in whole or part to the act or omission alleged to constitute negligence; and (c) the identity of the defendant (LA 1980, s 14).

“Significant” injury means injury sufficiently serious to justify bringing proceedings. If a claimant dies within three years of accrual, the limitation period runs for three years from the date of death or from the personal representative’s date of knowledge (LA 1980, s 11(5), s 12(2)). For injured children, time does not run until they reach 18; for those lacking capacity, time is suspended while the disability persists (see Disability below).

Worked Example 1.3

A 15-year-old suffers personal injury in a road traffic accident on 1 March 2023. When will the limitation period expire?

Answer:
The three-year period does not run while the claimant is a minor. Time starts on the 18th birthday (1 March 2026), and the limitation period expires three years later, on 28 February 2029.

Latent Damage (Negligence)

Sometimes, damage caused by negligence (other than personal injury) is not discovered until many years after the negligent act. The Latent Damage Act 1986, amending the Limitation Act 1980, provides special time limits in these cases (LA 1980, s 14A). The claimant has the later of:

• six years from the date the cause of action accrued (when damage occurred), or
• three years from the earliest date the claimant had the knowledge required for bringing an action and the right to bring such an action (the “starting date”).

There is an overriding time limit (the “longstop”) of fifteen years from the date of the negligent act or omission (LA 1980, s 14B). The longstop is absolute for latent damage and is not generally displaced by s 32.

Key Term: Date of Knowledge (Latent Damage)
For s 14A, the claimant’s knowledge that: (a) the material facts about the damage; (b) the damage was attributable to a particular act or omission; and (c) the identity of the defendant. Knowledge includes what would reasonably be expected of a person in the claimant’s position exercising reasonable diligence.

Key Term: Longstop (s 14B)
The absolute limit of 15 years from the date of the negligent act or omission for latent damage claims (excluding personal injury), regardless of later knowledge.

Worked Example 1.4

An engineer negligently specifies a component in January 2009. The component fails and causes property damage in May 2016. The property owner only learns in September 2020 that the failure was due to the engineer’s specification. What is the last date to issue proceedings?

Answer:
Six years from damage: May 2016 to May 2022. Three years from knowledge: September 2020 to September 2023. The later of these is September 2023, but subject to the longstop: 15 years from January 2009 is January 2024. Therefore, the last date to issue is no later than September 2023.

Fraud, Concealment, or Mistake

Section 32 of the Limitation Act 1980 provides that where the action is based upon the fraud of the defendant, or any fact relevant to the claimant's right of action has been deliberately concealed by the defendant, or the action is for relief from the consequences of a mistake, the limitation period does not begin to run until the claimant has discovered the fraud, concealment, or mistake, or could with reasonable diligence have discovered it.

Key Term: Deliberate Concealment (s 32 LA 1980)
Occurs where the defendant knowingly takes active steps to conceal a fact relevant to the claimant's right of action, or fails to disclose a fact when under a duty to do so. This postpones the start of the limitation period.

In fraud or deliberate concealment, the accrual remains at breach/damage as applicable, but the start of the limitation clock is postponed until discovery or when discovery ought reasonably to have occurred. The claimant must show reasonable diligence.

Worked Example 1.5

A contractor installs a defective boiler in June 2015 and deliberately falsifies commissioning records to hide the defect. The defect is revealed by a later expert report on 1 September 2022. When does time start running?

Answer:
Under s 32, time is postponed until the claimant discovered, or could with reasonable diligence have discovered, the concealment. The discovery date is 1 September 2022, so the limitation period for a negligence claim begins then (subject to the six-year period from damage and any s 14A/s 14B interplay if latent damage applies).

Disability

If the person to whom the cause of action accrued is under a disability (defined as being an infant, i.e., under 18, or lacking capacity under the Mental Capacity Act 2005) on the date when the cause of action accrued, the limitation period does not start to run until they cease to be under that disability (LA 1980, s 28; s 38 defines “disability”). This applies across actions unless specifically excluded.

Key Term: Disability
Minority (under 18) or lack of capacity within the meaning of the Mental Capacity Act 2005. Time does not run during such disability (LA 1980, s 28).

Calculating the Expiry Date

To calculate when the limitation period expires, you start counting from the day after the cause of action accrued (or the day after the relevant knowledge date where a knowledge-based provision applies). The period expires at the end of the relevant anniversary day.

• Example: A breach of contract occurs on 15 July 2023. The six-year limitation period starts running on 16 July 2023 and expires at midnight on 15 July 2029.

Where there are multiple breaches or multiple separate instances of damage, assess each cause of action individually. For continuing torts (e.g., ongoing nuisance), fresh causes of action may accrue each day, subject to equitable doctrines and practical remedies. For debts by instalments, each missed instalment has its own accrual date; acknowledgment or part-payment can restart time.

Issuing the Claim Form

To stop time running for limitation purposes, the claimant must deliver the claim form to the court office, accompanied by the correct court fee, before the limitation period expires. The claim is “brought” for limitation purposes on the date the court receives these documents, not the date the court issues or seals the form (which might be later). Issuing protectively is common where evidence is incomplete and limitation is near, but service must still be effected within the claim form’s validity period.

Key Term: Deemed Service
For claim forms, deemed service is the second business day after the relevant service step (for most methods). Other documents (e.g., particulars of claim served separately) follow the CPR 6.26 rules (e.g., same day before 4.30 p.m., otherwise next business day) for deemed service.

The claim form must be served within four months of issue within the jurisdiction (six months if serving out of the jurisdiction). If service cannot be achieved within that period, the claimant must apply to the court for an extension of time under CPR 7.6. An application should be made before expiry; if made after, the court will only grant an extension in narrow circumstances (e.g., where the court failed to serve, or the claimant took all reasonable steps to serve but could not, and acted promptly in applying). Parties cannot extend the four-month service period by agreement; a court order is required.

Exam Warning Always diarise the limitation date as soon as you identify it. Missing a limitation date is a common source of professional negligence claims against solicitors. Remember that issuing the claim form stops the limitation clock, but it must still be served correctly within its period of validity (usually 4 months). If limitation is imminent and full particulars are not ready, issue protectively, then serve the particulars within 14 days of service of the claim form (and within four months of issue).

Worked Example 1.6

A personal injury claim is nearing limitation on 5 May 2025. The claimant’s solicitor issues a claim form on 2 May 2025 without a medical report, intending to serve later. The claim form is served by first-class post on 12 May 2025. When is the document deemed served and is limitation safely stopped?

Answer:
The claim was “brought” on 2 May 2025 when the claim form and fee were received by the court, stopping the limitation clock. Service by first-class post is deemed on the second business day after posting. If posted on Monday 12 May, deemed service is Wednesday 14 May (assuming no bank holidays). The particulars of claim must be served within 14 days of service of the claim form (and within the four-month validity window).

Worked Examples (Additional Scenarios)

Worked Example 1.7

A supplier and buyer sign a contract executed as a deed on 1 February 2014. The buyer alleges breach on 10 March 2015. What is the limitation period?

Answer:
For a specialty (deed), limitation is 12 years from accrual. The cause of action accrues on breach (10 March 2015), so the last day to issue is 9 March 2027 (counting from the day after accrual).

Worked Example 1.8

A debtor defaulted on a loan on 1 June 2017. On 15 April 2021, the debtor emails a signed acknowledgment of the debt. When will a six-year debt action expire?

Answer:
Acknowledgment resets the clock. The new six-year period runs from 15 April 2021, expiring on 14 April 2027.

Worked Example 1.9

Damage from negligent advice occurs on 1 October 2015. The claimant suspects negligence in 2016 but only identifies the adviser’s identity and causal link on 10 January 2020. Can s 14A be invoked?

Answer:
Under s 14A, the three-year period runs from the “starting date” when the claimant had the necessary knowledge. If knowledge (significant damage, attributability, identity) was first acquired on 10 January 2020, the s 14A period expires on 9 January 2023, subject to the six-year standard period from damage (to 30 September 2021) and the s 14B longstop.

Consequences of Expiry

Once the limitation period expires, the claim becomes statute-barred. While this does not extinguish the fundamental right itself, it provides the defendant with a complete procedural defence. If the defendant pleads limitation in their defence, the court must dismiss the claim. A claimant cannot pursue a statute-barred claim. In rare contexts, courts have limited discretionary powers (e.g., under s 33 LA 1980 for personal injury to disapply limitation where it is equitable to do so), but those provisions are tightly constrained and do not apply to standard contract claims.

Practical Pre-Action Considerations (Limitation Context)

Pre-action protocols and the Practice Direction on Pre-Action Conduct and Protocols encourage early exchange of information, attempts at settlement, and consideration of ADR. However, pre-action steps do not stop the limitation clock. If limitation approaches, protective issue is appropriate, even if full pre-action compliance is not yet possible. After issue, the claim form must still be served within its validity period, or an extension must be obtained by court order.

Where personal injury is involved, early medical evidence (and clear identification of the date of knowledge if relevant) should underpin limitation analysis. In latent damage claims, interrogating what the claimant knew, and when, about the damage, its cause, and the defendant’s identity is important. In fraud/concealment/mistake cases, keep a clear timeline of discovery and diligence to justify s 32 postponement.

Key Term: Date of Knowledge (Personal Injury)
See definition above; knowledge of a significant injury attributable to the defendant and of the defendant’s identity.

Key Term: Date of Knowledge (Latent Damage)
See definition above; knowledge of material facts of damage, attributability, and identity of the defendant for s 14A.

Key Point Checklist

This article has covered the following key knowledge points:

• Limitation periods are statutory time limits for commencing legal proceedings, primarily governed by the Limitation Act 1980.
• Failure to commence proceedings within the limitation period means the claim becomes statute-barred, giving the defendant a complete defence.
• For simple contract claims, the period is 6 years from the date of breach; for contracts by deed, 12 years.
• For tort claims (excluding specific exceptions), the period is 6 years from the date damage is suffered; defamation is generally 1 year.
• Personal injury claims have a 3-year period, running from the date of injury or the date of knowledge, whichever is later; time does not run for minors until 18, or during lack of capacity.
• Latent damage claims have special rules: 6 years from damage or 3 years from knowledge (s 14A), subject to a 15-year longstop from the negligent act (s 14B).
• Limitation periods can be postponed in cases of fraud, deliberate concealment, or mistake (s 32), with the clock starting at discovery or when discovery ought reasonably to have occurred.
• Acknowledgment in writing or part-payment can restart limitation periods for debt claims (ss 29–30).
• Issuing the claim form with the fee stops limitation; service must follow within the validity period (4 months in the jurisdiction), with deemed service calculated under the CPR. Only a court can extend the time for service (CPR 7.6).
• Always consider whether a personal injury claim may attract s 33 discretion; otherwise, limitation rules are strictly applied.

Key Terms and Concepts

• Limitation Period
• Statute-barred
• Limitation Act 1980
• Cause of Action Accrued (Contract)
• Cause of Action Accrued (Tort)
• Date of Knowledge (Personal Injury)
• Date of Knowledge (Latent Damage)
• Longstop (s 14B)
• Deliberate Concealment (s 32 LA 1980)
• Disability
• Contract by Deed
• Acknowledgment and Part Payment
• Deemed Service
• Protective Issue