Resolving a dispute through a civil claim Flashcards
Limitation Act 1980 (LA 1980)
The Limitation Act 1980 sets strict time limits within which a claimant must commence legal proceedings.
If these time limits are missed, the claim is likely to be “statute barred,” meaning the court will not allow the case to proceed unless there are exceptional circumstances.
The purpose of these deadlines is to protect defendants from being under perpetual threat of litigation for events that occurred years earlier and to account for the degradation of evidence and witness reliability over time.
Effect of Limitation Period Expiration
If a claim is filed after the limitation period has expired, the defendant can raise a technical defense that the claim is “statute barred.”
If the court agrees, the claimant will be unable to succeed in their litigation.
This defense is critical in protecting the legal certainty of the defendant. Lawyers must be diligent in monitoring limitation deadlines to avoid negligence claims from their clients for missed deadlines.
Limitation Periods for Different Types of Claims
- Contractual claims: Six years from the date the breach of contract occurs (Section 5 of LA 1980).
- Tort claims: Six years from when the tort is committed or when damage occurs due to negligence (Section 2 of LA 1980).
- Personal injury claims: Three years from the cause of action or the claimant’s knowledge of the injury. For children, this period begins on their 18th birthday.
- Negligence with latent damage: The limitation period is six years from the cause of action or three years from when the damage was discovered, whichever is later, but no later than 15 years after the negligent act or omission (Section 14A of LA 1980).
Exceptional Circumstances for Extending Limitation Period
While limitation periods are strictly enforced, in exceptional circumstances, the court may allow claims commenced outside the limitation period to proceed.
However, this is rare, and a defendant raising the limitation issue as a defense usually leads to the claim being dismissed. It’s essential for claimants to act within the statutory time limits unless they can demonstrate a justifiable exception.
Parties to a Claim
Claimant: The party initiating the lawsuit.
Defendant: The party against whom the lawsuit is brought.
It is crucial to ensure the correct identification and spelling of the names of all parties involved to avoid procedural errors.
In cases involving torts by employees, both the employee and employer (due to vicarious liability) may be defendants. Additionally, in cases involving defective products, both the retailer and manufacturer may be liable.
Suing the Correct Defendant
A defendant must be correctly identified and sued in the proper legal capacity. They could be:
- An individual
- A sole trader
- A partnership
- A limited liability partnership (LLP)
- A limited company
Suing the wrong legal entity could result in procedural delays and additional costs.
Checking the Financial Viability of the Defendant
Before pursuing a claim, it’s essential to assess whether the defendant is financially capable of satisfying a judgment. This can be done through:
- A search at Companies House (for companies)
- Bankruptcy searches (for individuals)
- Using inquiry agents or online research
Suing a defendant on the brink of bankruptcy or liquidation is often futile, as they may be unable to pay any judgment awarded.
Types of Claims: Specified vs. Unspecified Claims
Specified claims: Claims for a fixed amount of money, such as debts or contractual amounts. The amount owed is known and easily calculable (e.g., unpaid invoices).
Unspecified claims: Claims where the court must investigate and determine the amount payable, often involving damages where the exact amount is unknown at the outset.
Case Analysis in Legal Practice
A lawyer must act in the best interests of their client by ensuring that the client does not pursue a hopeless case or one with limited prospects of success.
It is crucial to take full instructions from the client at the first interview to understand their problem and begin evaluating potential legal solutions.
This process helps the lawyer offer preliminary advice on key issues such as liability and quantum (the amount of damages that could be awarded).
Cause of Action
A cause of action is the legal foundation upon which a claim is built, such as breach of contract or negligence.
To determine whether a client has a viable cause of action, the solicitor must carefully analyze all available evidence—whether that evidence is provided orally by the client and witnesses, or found in written documentation.
The cause of action forms the legal basis for drafting statements of case, which outline the positions of both parties.
Key Elements of a Breach of Contract Claim
In a breach of contract case, several key elements must be addressed:
Existence of a contract: The first step is to establish that a contract existed, though this is rarely disputed.
- Terms of the contract: The solicitor must determine the express and/or implied terms of the contract. Written agreements help clarify express terms, while oral contracts may require assessing the evidence from both parties. Implied terms, especially in business contracts, may be imposed by statute.
- Breach of contract: The solicitor must assess whether the other party’s actions (or inaction) amount to a breach of the contract.
- Consequences: The factual consequences of the breach must be identified.
Types of Loss and Damage in Contract Disputes
When a breach of contract is proven, the solicitor must consider the damage or loss suffered by the claimant. Each claimed item of loss must be supported with evidence. The aim in contractual disputes is often to compensate the claimant for losses resulting directly from the breach, restoring them to the position they would have been in had the breach not occurred.
Tort of Nuisance
The tort of nuisance occurs when a landowner unreasonably interferes with another landowner’s use or enjoyment of their land. Common examples include:
- Excessive noise from a neighbor.
- Tree roots causing damage to adjacent property.
- Water flooding from one property to another.
The purpose of damages in a nuisance claim is to restore the claimant to the position they would have been in if the nuisance had not taken place.
Misrepresentation
Misrepresentation occurs when one party (Party A) makes an untrue or misleading statement of fact that induces another party (Party B) to enter into a contract, causing Party B to suffer loss.
For example, if a car salesman falsely claims a vehicle has never been in an accident and the customer buys the car based on that claim, this could be a case of misrepresentation. The aim of damages in a misrepresentation claim is to return the claimant to the position they were in before entering the contract.
Existence and Proof of a Contract
To succeed in a breach of contract claim, the existence of the contract must first be established. This is rarely disputed, but proving the contract terms can be more complex, especially if the contract was made orally.
In such cases, the available evidence may consist of conflicting accounts from the parties involved. For business contracts, implied terms imposed by statute may also play a role, even in the absence of a written agreement.
