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Limitation of Actions Consultation - Law Commission

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instrument used (subject only to general rules governing the fairness <strong>of</strong> contracts<br />

such as those laid down in the Unfair Contract Terms Act 1977). 7<br />

Our<br />

provisional view is, therefore, that specialties should be subject to our core<br />

regime. We ask consultees whether they agree, and if not, to say why not.<br />

2 ACTIONS UNDER THE LAW REFORM (MISCELLANEOUS<br />

PROVISIONS) ACT 1934<br />

13.7 Under the current law, 8<br />

the death <strong>of</strong> a potential plaintiff does not extinguish any<br />

cause <strong>of</strong> action which accrued to that plaintiff. Instead the cause <strong>of</strong> action survives<br />

for the benefit <strong>of</strong> the estate. Unless the action includes a claim for damages for<br />

personal injuries suffered by the deceased plaintiff, the death will have no effect on<br />

the limitation period, which will run from the accrual <strong>of</strong> the cause <strong>of</strong> action.<br />

Where a claim is being made for damages for personal injuries, the limitation<br />

period will run from the date <strong>of</strong> death or the date <strong>of</strong> knowledge <strong>of</strong> the personal<br />

representative <strong>of</strong> the deceased, and the court will have a discretion to disapply the<br />

limitation period.<br />

13.8 Under our core regime, the initial limitation period for all claims (not simply<br />

claims in respect <strong>of</strong> personal injuries) will start from the date the plaintiff - that is<br />

the personal representative <strong>of</strong> the deceased - knew or ought to have known <strong>of</strong> the<br />

cause <strong>of</strong> action. Should the limitation period run from the date <strong>of</strong> death where<br />

this is later than the date <strong>of</strong> discoverability, as under the current regime for<br />

personal injuries? The date <strong>of</strong> discoverability could in some cases precede the<br />

death, where, for example the personal representative has been told <strong>of</strong> the cause <strong>of</strong><br />

action by the deceased. As the personal representative has no power to act on<br />

behalf <strong>of</strong> the estate until, at the earliest, the date <strong>of</strong> death - and as the long-stop<br />

would prevent indefinite liability - it would seem reasonable to postpone the start<br />

<strong>of</strong> the limitation period until the date <strong>of</strong> death.<br />

13.9 Under our core regime the long-stop period would start from the date <strong>of</strong> the act or<br />

omission by the defendant which gave rise to the cause <strong>of</strong> action. This may in<br />

some cases mean that the personal representative has relatively little time to bring<br />

the action, for example where the deceased died after having contracted a latent<br />

industrial disease and the claim relates to this injury. However, this would be in<br />

line with the principle generally adopted by the current law that the estate <strong>of</strong> the<br />

deceased should not be able to bring an action where the deceased himself would<br />

have been time-barred. The alternative starting point for the long-stop period,<br />

the date <strong>of</strong> death, could considerably extend the length <strong>of</strong> time the defendant<br />

remains exposed to potential liability. We do not think that such an extension<br />

would be reasonable.<br />

7 See the discussion in the <strong>Law</strong> Reform Committee, Twenty-First Report (Final Report on<br />

<strong>Limitation</strong> <strong>of</strong> <strong>Actions</strong>) (1977) Cmnd 6923, paras 2.58 - 2.61. This is not the case in<br />

Scotland, where section 13 Prescription and <strong>Limitation</strong> (Scotland) Act 1973 invalidates any<br />

provision in an agreement which purports to exclude a prescription limitation period. See<br />

our proposals with respect to agreements to change the limitation periods, paras 14.1 - 14.6<br />

below. See also paras 9.7 - 9.11 above.<br />

8 See paras 3.77 - 3.80 above.<br />

325

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