PROPERTY & CONSTRUCTION LAW

Property & construction Law

Property & construction Law

This paper examines the impact that limitations of time have on construction-related claims.

Part 1

Contractual Liability

Contractual liability is a very important concept in the world of risk management and insurance. Yet, what is meant by contractual liability and how it actually works is not always well understood. This article is intended to clarify the concept of contractual liability with examples of risk transfer by contract as well as providing an explanation, with illustrations, as to how the contractual liability insurance, found in the commercial general liability (CGL) insurance policy, applies (Gerven et al, 2001, pp.78-85).

Liability in the tort of negligence

Negligence is the failure to exercise the required amount of care to prevent injury to others. For example, if you cause an accident that injures someone or damages their vehicle because you were driving at an unsafe speed, then you could be sued for negligence.

In some cases, the law imposes absolute liability (aka strict liability) on specific parties without regard to fault, and, therefore, obviates the need to prove fault in court. For instance, manufacturers are held strictly liable for defective products that they manufacture.

Sometimes, the law designates other parties as being responsible, whether they are or not. Imputed negligence results in vicarious liability, where the principal is responsible for the acts of his agents. For example, employers have vicarious liability for the actions of their employees. If an employee injures someone in the course of employment, then it doesn't matter whether the employer could have done anything to prevent it—the employer will be held liable regardless. Other instances of imputed negligence is through the effect of the family purpose doctrine that holds parents responsible for the negligent acts of their children, or the dram shop law, which holds the seller of alcoholic beverages liable for drunken patrons (Lunney, 2003, pp.45-70). If a patron drives after drinking at a tavern, and subsequently kills or injures someone with his vehicle, then the tavern owner can be held liable.

Part 2:

The Foreign Limitation Periods Act 1984 provides that the law governing the substantive issues applies to the limitation period. There is an exception to this principle, based on public policy, where its application would result in undue hardship for a person who is or might be made a party to the proceedings. Assuming that UK law does apply, the limitation period for claims in negligence, nuisance or breach of duty where the damages claimed include personal injuries is three years. For simple breach of contract and tort claims the limitation period is six years (Limitation Act 1980). A discretion is conferred on the Courts to exclude the time limit in actions for personal injury or death where they consider it would be equitable to do so. Victims of human rights violations must first discover they may have legal recourse through the UK courts, and then face such difficulties as identifying lawyers and finding funds to cover costs. In these circumstances issuing proceedings within the limitation ...