Limitation of Actions Consultation - Law Commission

periods, a danger otherwise would be that a fresh limitation period would be
triggered by every new benefit arising from the same wrong.
13.81 Under our core regime the long-stop (of 10 years) will start from the date of the
relevant act or omission of the defendant. In autonomous unjust enrichment, this
will be the same date as the defendant’s unjust enrichment. In respect of
restitution for wrongs, whether actionable per se or actionable only on proof of
damage (for example, the torts of nuisance or negligence), the relevant act or
omission should be the date of the breach of duty so that the same long-stop
should apply whether the plaintiff claims restitution or compensation for the
wrong.
13.82 A final point is that (non-contractual) actions for contribution or an indemnity are
best viewed as restitutionary, with the benefit being the discharge of the
defendant’s liability: an analogous action is that for money paid to the defendant’s
use. 112
The problem of there being a chain of such actions is dealt with in
paragraphs 13.86 - 13.92 below.
13.83 We provisionally propose that restitutionary actions should be subject to
our core regime (with the qualification expressed at paragraph 13.91
below). We also ask consultees whether they agree and, if not, to say why
not.
9 ACTIONS FOR A CONTRIBUTION OR AN INDEMNITY
(1) Contribution under Section 1 of the Civil Liability (Contribution) Act
1978
13.84 Under section 10 of the 1980 Act, an action to recover a contribution (under
section 1 of the Civil Liability (Contribution) Act 1978) towards any damages
which a defendant is liable to pay, or agrees to pay in settlement of his liability,
must be brought within two years from the date of the judgment against the
defendant, or the date on which agreement is reached on the amount of the
payment included in the settlement. 113
13.85 Applying our core regime, the initial limitation period applicable to actions for
contribution under section 1 of the 1978 Act, would be three years running from
the date on which the defendant discovers the facts relevant to his or her cause of
action for contribution. Discoverability for these purposes will include knowledge
of the fact that the defendant is liable to make payment to the plaintiff in the main
action (whether in the form of damages or of an agreed settlement), and of the
fact that the potential contributor is liable to contribute towards that sum. In
many cases, the starting point for the limitation period will therefore coincide with
the date judgment is given in the main action, or the amount of the settlement is
agreed, as under the present law. 114
Although the defendant may have become
aware of the potential liability earlier, when served with proceedings in the main
112 See Goff and Jones, The Law of Restitution (4th ed 1993), chapters 12 - 14.
113 See paras 7.22 - 7.25 above.
114 Similarly, the long-stop period would run from the date the cause of action accrued under
our core scheme.
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