Understanding Your Rights Under the Limitation Act 1980

The Limitation Act 1980 is a law that sets time limits on how long you have to bring a legal claim. Typically, this means you need to take action within six years from the date something goes wrong, or an issue arises. This time limit helps resolve disputes quickly and ensures that everyone involved is protected from ongoing legal threats.

However, there's an important exception: Section 32 of the Limitation Act 1980. This part of the law protects you if someone has intentionally hidden information that affects your right to make a claim. If this happens, the clock on the six-year time limit doesn’t start ticking until you discover the hidden information. It is important to note that this area of law does not apply to claims in respect of personal injury. These types of claims should be brought within three years of the date the injury took place and/or the date of knowledge of the person injured.

Why This Matters: Canada Square Operations v Potter [2023] UKSC 41

A recent Supreme Court case, Canada Square Operations v Potter, has clarified how the Limitation Act applies in real life.

What Happened?

Mrs. Potter had an agreement with Canada Square Operations regarding a PPI (Payment Protection Insurance) policy. Unknown to her, 95% of the premium she paid was actually a commission for Canada Square. They didn't tell her about this hidden cost.

Mrs. Potter decided to take legal action to get back the money she paid, but Canada Square argued that she waited too long and was past the six-year limit to file a claim. The question the court faced was: Should the six-year countdown start from when Mrs. Potter bought the policy, or from when she discovered the mis-selling?

The Supreme Court’s Decision

The court ruled in favour of Mrs. Potter. They decided that if a company hides important information, the time limit for making a claim starts when you find out about the deception, not when the transaction happened.

This ruling should be welcomed by potential claimants (people bringing a claim forward) because it acknowledges that many people only discover mis-selling long after they initially enter agreements, especially with complicated financial products like Payment Protection Insurance (PPI).

What This Means for You

This ruling opens up new possibilities for those who thought they were out of time to make a claim. Claimants can now file a claim when they first become aware of any mis-selling, even if it's been more than six years since the original transaction. Additionally, if a company intentionally hides facts that affect your rights, you're protected by the law.

To take advantage of this extended timeframe, keep records of when you first learned about the mis-selling. Evidence of how and when you became aware is crucial. This change in the law stresses the importance of being diligent and maintaining thorough documentation when dealing with potentially mis-sold products.

For help and guidance on this topic or to bring a potential claim forward, get in touch with our Commercial Litigation team on 03333 208644 or email hello@jcpsolicitors.co.uk