Out-Law Guide | 01 May 2013 | 3:19 pm | 3 min. read
Limitation periods impose time limits within which a party must bring a claim, or give notice of a claim to the other party. They are imposed by statute, primarily the Limitation Act.
There are different limitation periods for different types of cause of action. For example, the limitation period is six years for a normal contract claim but 12 years if the contract was created by deed.
It will be necessary at the outset of any new claim to determine whether or not the limitation period has already expired. If it has, the claim will be 'statute barred' and the claimant may be prevented from bringing a claim against the alleged wrongdoer. If a claim proceeds out of time, the defendant will be able to plead the defence of limitation and the claimant will have the burden of proving that the cause of action arose within the relevant statutory period.
Time runs from different dates depending on the cause of action. For example, in a negligence claim, time will usually run for six years from the date when the negligent act or omission occurred. In a contract claim, the limitation period will run from the date when the contract was breached. Other common time limits are listed below.
In respect of negligence claims, it is possible to bring a claim outside the six-year limitation period if the damage complained of was not discovered until after the expiry of this period. This is known as 'latent damage', and in these circumstances the claimant has three years from either the date of knowledge of loss or the date when it ought to have reasonably known about the loss. What constitutes what 'ought reasonably to have been known' depends on the circumstances of the case, and specific advice should always be sought. There is a final time limit of 15 years from the date of the defending party's negligent act or omission.
Proceedings begin when the court receives the claim form. At this point, time will stop running for that cause of action. This is intended to protect the claiming party's right to sue while settlement discussions are ongoing. While any court proceedings can be amended later, with the court's permission, this permission will not extend to allowing a fresh cause of action to be included in the proceedings if the original time period has passed.
Limitation periods may be varied or excluded by agreement. However, a contractual term which imposes a shorter limitation period may be subject to a test for reasonableness under the Unfair Contract Terms Act. While this protects consumers, the courts are less willing to intervene with contractual limitations of liability agreed between sophisticated commercial entitles of equivalent bargaining strength. A defendant may also be prevented from relying on a defence of limitation by its conduct.
Important limitation dates for some of the common causes of action are covered below.
Contract under seal (deeds):
Negligence (other than personal injury or death):
Tort (generally, including conversion and trespass):
An action for a contribution (entitlement to claim against another party who was jointly liable for a loss):