Limitation of Actions Consultation - Law Commission

1993, by virtue of D1’s concealment. But section 32(1) does not apply because D2
is a bona fide purchaser and therefore able to take advantage of section 32(3). So
the limitation period, as against D2, ends in 1991, even though this is two years
before P could have known about the fraud. 58
(5) The Effect of Section 32 on Consumer Protection Act Claims and
Latent Damage Claims
8.25 We have seen that, in relation to claims under the Consumer Protection Act 1987
and in relation to claims in respect of negligently inflicted latent damage which
does not involve personal injury, there are two limitation periods: an initial
limitation period based on discoverability, 59
and a long-stop period. 60
The question
arises of how these regimes interact with the postponements of limitation periods
normally available under section 32.
8.26 In relation to claims under the Consumer Protection Act 1987, section 32(1) does
not apply to override the long-stop in any circumstances. 61
The position in relation
to latent damage claims is slightly less straightforward. Deliberate concealment will
operate to disapply the long-stop. 62
The other factors which postpone the start of a
limitation period under section 32, fraud and mistake, do not have this effect. 63
But
deliberate concealment will also disapply the initial limitation period, so that if
there is deliberate concealment in a latent damage case, the limitation period of six
years generally applicable to torts 64
will apply, but commencing on the date when
the plaintiff discovered, or could with reasonable diligence have discovered, the
concealment. So, if D negligently constructs a building for P in 1989, and the
negligence causes immediate damage which is not discovered (or discoverable) by
P until 1994, then the limitation period for P’s claim in negligence would normally
expire in 1997, three years after P’s date of knowledge. 65
But if P’s failure to
discover the damage resulted from D’s deliberate concealment, the limitation
period will expire in 2000, six years after the date on which P discovered the
concealment.
58 P’s action against D1 is not, and will not become, barred, although it may well be worthless.
59 Limitation Act 1980, s 11A(4): see paras 3.101 - 3.102 above (Consumer Protection Act
claims). Limitation Act 1980, s 14A: see paras 3.93 - 3.98 above (latent damage claims). In
relation to latent damage claims there is an alternative initial limitation period of 6 years
from the date on which the cause of action accrued.
60 Limitation Act 1980, s 11A(3); see also para 3.103 above (Consumer Protection Act
claims); Limitation Act 1980, s 14B; see also para 3.99 above (latent damage claims).
61 Limitation Act 1980, s 32(4A).
62 Ibid, s 32(5). See Law Reform Committee, Twenty-Fourth Report (Latent Damage) (1984)
Cmnd 9390, para 4.20.
63 Although since section 14B is limited to negligence claims it is hard to see that fraud and
mistake could be relevant.
64 Under Limitation Act 1980, s 2.
65 Ibid, s 14A.
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