The limitation period for any action for damages for negligence is either six years from the date the cause of action accrued or three years from the earliest date when the claimant had the knowledge required to bring the claim under section 14A of the Limitation Act 1980.
This issue has been considered by the High Court in Vinci Construction UK Ltd v Eastwood and Partners (Consulting Engineers) Ltd and another [2023] EWHC 1899 (TCC).
In April 2012, Vinci was appointed by Princes Ltd, the owner of a warehouse and distribution facility in Bradford, to carry out works to the building. Vinci engaged Eastwood to provide engineering services and second defendant Snowden Seamless Floors Ltd to carry out the design, supply and installation of the structured reinforced concrete slabs. In April 2013, Snowden engaged GHW Consulting Engineers (third party to the case) to carry out the design for the in situ reinforced concrete internal floor slabs.
Instead of replacing the internal concrete slab as originally intended, the design was changed to limited replacement of areas of the existing slab and the installation of an unbonded overlay slab. The works were completed in August 2013. The floor subsequently developed defects including cracks which meant that it had to be entirely replaced. The parties were aware of material damage to the overlay slab by March/April 2015.
In February 2022, Vinci issued proceedings against Eastwood and Snowden for defective design, seeking damages of £2.5m paid to Princes under adjudication decisions. Snowden served an additional claim on GHW in April 2022, seeking an indemnity/contribution in respect of Vinci’s claim. GHW argued that Snowden’s claim was statute-barred and applied to strike it out.
Standstill agreements made by Snowden and GHW meant that the additional claim was treated as if it was issued on 7 May 2021. By that date contractual claims by Snowden against GHW were statute-barred, being brought more than six years from the date of breach. The date of damage had occurred prior to 7 May 2015 so a claim in tort based on physical damage also failed.
However, Snowden successfully argued that it did not have the knowledge required to bring an action for damages until it received a letter from Vinci dated 25 May 2018, in which Vinci suggested for the first time that it may make a claim against Snowden on the basis that the design of the overlay slab may have contributed to its failure. The additional claim was brought within three years of that date in compliance with section 14A of the 1980 Act. GHW’s strike–out claim failed.
Louise Clark is a property law consultant and mediator
