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Limitation of Actions Consultation - Law Commission

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What is meant by constructive knowledge (<strong>of</strong> facts)?<br />

15.7 We ask consultees whether they agree with our provisional views that:<br />

(1) constructive knowledge should include a large subjective element so that it<br />

should be defined as “what the plaintiff in his circumstances and with his<br />

abilities ought to have known had he acted reasonably.”<br />

(2) no more elaborate definition <strong>of</strong> constructive knowledge is required.<br />

If consultees do not agree with our provisional views we ask them to explain why<br />

not, and what alternative approach they would prefer. (Paragraph 12.57).<br />

Should knowledge <strong>of</strong> the law be relevant?<br />

15.8 We ask consultees whether knowledge for the purposes <strong>of</strong> the date <strong>of</strong><br />

discoverability:<br />

(1) should always include knowledge <strong>of</strong> the law, including knowledge <strong>of</strong> one’s<br />

entitlement to a legal remedy for what has occurred; or<br />

(2) should include knowledge <strong>of</strong> the law only in so far as such knowledge is<br />

necessary for the plaintiff to know all the elements <strong>of</strong> his or her cause <strong>of</strong><br />

action.<br />

If consultees do not agree with either <strong>of</strong> these options, we ask them what<br />

alternative proposals they would prefer. (Paragraph 12.69).<br />

How would discoverability apply to corporate plaintiffs?<br />

15.9 Given the uncertainty <strong>of</strong> how the courts would apply the principles <strong>of</strong> agency and<br />

the identification test to discoverability by a corporate plaintiff - and given that this<br />

is already an issue <strong>of</strong> uncertainty under the present law <strong>of</strong> limitations - it is our<br />

provisional view that we should lay down specific statutory provisions setting out<br />

how discoverability would apply to corporate plaintiffs. We ask consultees if they<br />

agree. If consultees disagree, we ask them how they believe the courts would, or<br />

should, apply the discoverability test to corporate plaintiffs. (Paragraph 12.76).<br />

Actual knowledge<br />

15.10 We provisionally propose that:<br />

(1) there should be a general rule that a company has actual knowledge, for the<br />

purposes <strong>of</strong> the discoverability test, where an employee or <strong>of</strong>ficer has that<br />

knowledge;<br />

(2) but that this rule should not apply where the company can show that the<br />

employee or <strong>of</strong>ficer did not himself have authority to act on the<br />

information, and<br />

(a) the individual in question did not in fact communicate it to a<br />

superior or anyone else within the company with the authority to<br />

act on the information, and<br />

402

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