Limitation of Actions Consultation - Law Commission

ecome statute-barred once six years have elapsed after the first bona fide
purchase.
13.62 It would seem that our provisional preferred views could be neatly achieved by a
provision relating to deliberate concealment containing wording similar, mutatis
mutandis, to that in section 32(1), (3) and (4) of the 1980 Act. 91
Deliberate
concealment by a person would disapply the long-stop, not only in relation to
actions against that person, but also against his or her successors in title, but with
an exception protecting bona fide purchasers. Bona fide purchasers would be able
to rely on the long stop, whilst the long-stop would be disapplied for everyone else
receiving the goods, in good faith or otherwise. It would need to be provided that,
for a defendant who was a bona fide purchaser of converted goods, the long-stop
period would commence on the date when the defendant purchased the goods,
unless the defendant could trace his or her title to the goods back to one or more
previous bona fide purchasers, in which case it would commence on the date of
acquisition by the first of those purchasers.
Example D1 steals a painting from P in 2000. He then hides it and sells it on
to D2, who knows that it is stolen, in 2011. D2 sells it to D3, who does not know
that it is stolen, in 2012. D3 sells it to D4, another bona fide purchaser, in 2013. P
discovers 92
D1’s identity in 2023, D2’s identity in 2024, D3’s identity in 2025 and
D4’s identity in 2026. The long-stop period for an action against both D1 and D2
will be disapplied by virtue of D1’s, and perhaps D2’s, deliberate concealment of
their identity, and D2 will not be entitled to claim the “bona fide purchaser”
exception. The limitation period for a claim against D1 will therefore be three
years from P’s date of knowledge with regard to D1, ending in 2026, and the
limitation period for a claim against D2 will be three years from P’s date of
knowledge with regard to D2, ending in 2027. Since D3 and D4 are both bona
fide purchasers, D1’s deliberate concealment will not disapply the long stop. This
will run for 10 years from 2012. 93
13.63 We ask consultees whether they agree with our provisional views that
where goods have been stolen:-
(a) The long-stop period should apply in relation to actions for
conversion against bona fide purchasers of the goods, and that the
long-stop period should commence on the date of the purchase or,
where there has been more than one purchase, on the date of the
first bona fide purchase.
(b) The long-stop period should be disapplied in relation to actions
for conversion against anyone other than bona fide purchasers of
the goods.
91 See paras 8.23 - 8.24 above.
92 It is assumed that P has not acquired constructive knowledge, and has actual knowledge of
all other relevant facts, including (at least where delivery up of the painting is sought) the
location of the painting.
93 So it will have expired before P discovers that the property has been in D3’s and D4’s
possession.
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