Limitation of Actions Consultation - Law Commission

(2) Actions for Contribution under the Civil Liability (Contribution) Act
1978
(a) Section 1 of the Civil Liability Contribution Act 1978 (“the 1978 Act”)
7.22 An action under section 1 of the 1978 Act must comply with the requirements of
both the 1980 Act and the provisions of the 1978 Act affecting the limitation
period. Under section 1 of the 1978 Act, an action to recover a contribution may
be brought even though the defendant has ceased to be liable for the damages for
which he seeks the contribution (for example, because of the expiry of a limitation
period barring the remedy), provided that the defendant was so liable immediately
before he was ordered (or agreed) to pay the damages. 51
However, an action
against the potential contributor will be barred if the contributor has ceased to be
liable in respect of the damage for which the contribution is sought because of the
expiry of a limitation period which extinguished the right of the plaintiff (rather
than simply barring the remedy). 52
(b) Section 10 of the Limitation Act 1980
7.23 By section 10(1) of the 1980 Act, the limitation period for an action by a
defendant to recover a contribution under section 1 of the 1978 Act towards any
damages he or she is liable to pay (whether upon judgment or upon settlement of
a dispute) is two years from the date on which the right to bring the action
accrued.
7.24 The date on which the right accrued is decided in accordance with the provisions
of sections 10(3) and 10(4). Under section 10(3), where the contribution is
sought in respect of damages awarded by a judgment or an arbitration award, the
relevant date is the date of the judgment or award. Section 10(3) also provides
that no account is to be taken of a judgment or award made on appeal which
varies the amount of the damages awarded against the defendant. In consequence,
where the defendant is found liable to pay damages by a court of first instance, the
limitation period will run from the date of that judgment, whether or not an appeal
court later reduces or increases the amount of damages the defendant is liable to
pay. Where the defendant’s liability to pay damages arises only from the decision
of an appeal court, the limitation period will run from the date of the appellate
decision.
Act 1985) was six years - the period for actions on a contract, rather than a specialty. See
further K Reece-Thomas, “The section 14 Contract: Limitation Issues” (1997) 16 CJQ
318.
50 A case like Cork v Goode today in which the plaintiff sought a sum of money in reliance on a
statute would come within s 9. Before the Limitation Act 1939 came into force, the closest
equivalent to s 9 of the 1980 Act was provided by s 3 of the Civil Procedure Act 1833,
applying, inter alia, to actions for “penalties, damages, or sums of money given to the party
grieved by any statute”. This was interpreted as applying only in actions for penalties,
rather than compensation: see Thomson v Lord Clanmorris [1900] 1 Ch 718.
51 Section 1(2).
52 Section 1(3).
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