Limitation of Actions Consultation - Law Commission

first has knowledge of those facts, 215
has any interest in the property, a fresh cause
of action accrues to the person acquiring the interest at the date of acquisition. 216
But for limitation purposes 217
the cause of action is deemed to have accrued when
the original cause of action accrued. 218
So, where D negligently constructs a
building for X in 1990, damage occurs in 1991 which is, and remains, entirely
undiscoverable, and the property is sold to P1 in 1992, then to P2 in 1994, any
cause of action which P1 and P2 have will, for limitation purposes, be deemed to
have accrued in 1991, and the six-year limitation period in section 14A(4)(a) of
the 1980 Act expires in 1997.
(5) Consumer Protection Act 1987
3.101 Part I of this statute, in compliance with the United Kingdom’s obligations under
the Product Liability Directive 85/374 of 25 July 1985, creates a right of action
where damage to person or to consumer property is caused by a defective product.
Liability is strict, albeit that there is a development risk defence. 219
Schedule 1 to
the Act introduces a new section 11A and new subsections 14(1A) and 33(1A) 220
into the Limitation Act 1980. Time runs from the later of the date of accrual of
the cause of action and the date of the plaintiff's knowledge (or if the cause of
action concerns loss of or damage to property, the date of knowledge of the
plaintiff of, if earlier, of any person in whom the plaintiff’s cause of action was
previously vested). The limitation period is 3 years.
3.102 The provisions are clearly modelled closely on the personal injuries provisions in
sections 11 and 14 of the 1980 Act. The “date of knowledge” in section 14(1A) in
particular is defined as knowledge of facts which would cause a reasonable person
suffering such damage to consider it sufficiently serious to institute proceedings for
damages against a defendant not disputing liability and with means to satisfy a
judgment. Similarly, the fact that the plaintiff does not know that particular facts
or circumstances do not constitute a defect at law which would give him a right of
action is irrelevant. However, where section 14(1) refers to knowledge of facts
about the “injury in question”, and section 14A refers to knowledge of facts about
“the relevant damage”, section 14(1A) refers to knowledge of facts about “the
damage caused by the defect”. This difference may affect the extent to which a
plaintiff who has suffered a comparatively minor injury but later becomes aware of
far more serious damage caused by the defect can argue that time should run from
his awareness of the more serious damage.
damages against a defendant who did not dispute liability and was able to satisfy
a judgment.
See also Limitation Act 1980, ss 14A(7), 14(2), and paras 3.40 - 3.44; 3.94 - 3.98 above.
215 A person’s knowledge is defined to include constructive knowledge in LDA 1986, s 3(6).
216 LDA 1986, s 3(1).
217 That is, for the purposes of Limitation Act 1980, s 14A(4)(a).
218 LDA 1986, s 3(2)(b).
219 Consumer Protection Act 1987, s 4(1)(e).
220 See also s 28(7) of the 1980 Act: see para 8.3 below.
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