Limitation Act 1980

[schwartzie]

S.5 Limitation Act 1980 (Time limit for actions founded on simple contract) says "An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued." Can anyone explain the meaning of the phrase I've highlighted. If there is a debt re unpaid invoices from, say, 2003-2006, are they all time barred or none of them or those dated prior to June 2004? Any relevant court cases would be helpful. Thanks in advance.

[Amy]

Re: Limitation Act 1980

It means a claim should be brought within 6 years, but the 6 years only starts when one could reasonably have discovered there was a case to bring.

For example, if you have been paying PPI on a loan for 10 years and then through a change in circumstances, such as loss of a job and you subsequently attempt to claim on the insurance, only to discover that since you are self employed you are not covered under the insurance terms - then you may begin a claim.

[righty]

Re: Limitation Act 1980

A money claim can be issued in court upto 6 years after the event (personal injury 3 years & mortgage 12 years). In otherwords in a money claim you must issue protective proceedings BEFORE the 6 years expires.

The 6 year limit is qualified in that you will have known of the loss at the time. However it's not good enough to simply say "I didn't know" cos even if you didn't & the court considers that a reasonable person should have you will lose. For a court to allow an out of time claim to proceed there has to be very strong extenuating circumstances.