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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Eagle v Redlime Ltd [2011] EWHC 838 (QB) (04 April 2011) URL: http://www.bailii.org/ew/cases/EWHC/QB/2011/838.html Cite as: [2011] EWHC 838 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
Clinton Eagle |
Claimant |
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- and - |
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Redlime Limited |
Defendant |
____________________
Mr Oliver Ticciati (instructed by Keoghs) for the Defendant
Hearing dates: 14, 15 March 2011
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Crown Copyright ©
Mr Justice Eder:
Introduction
Background Facts
"Dear Redlime Ltd,
To whom it may concern, after your site visit three weeks ago, I am now writing to ask for your written reply to our subsidence problem.
I would like your reply by seven working days of this dated letter.
If I get no reply I will have to get a structural engineers report
Contact another company to come and put right all of the faults.
Then pursue yourselves for the costs of such work.
Yours sincerely
(signed)
Mr C Eagle"
"Dear Clinton,
Re Settlement issues with dog kennels January 2000
Further to our recent meeting I said I would look into the files and write back to you. Unfortunately due to the lapse in time none of the work files have been kept so my reply will be somewhat vague.
- On or around January 2000 you commissioned us to install a large cess pool and to carry out some ground work for your proposed kennels.
- These works were carried out despite onerous weather conditions and were completed on time and to your satisfaction.
- Redlime had no input into the loading or design of the kennels.
- All our works were inspected by yourself and as far as I am aware building control.
- Our contract was complete with the completion of the slab and drainage and other contractors were responsible for the construction of the kennels of which we had no input.
The first contact you have made with regards the settlement was this September 2006, and I am not aware when the problems first began to manifest. From visual inspection, there has been settlement of the foundations due largely I would suspect to the dry summers causing shrinkage of the clay soils present.
I am sorry that this problem has materialised but I am afraid that for the reasons given, we can not any take responsibility for the settlement, [sic] and would suggest that you take the matter up with your architect or engineer."
"CONCLUSIONS
We are of the opinion that the cracking to the floor slab is a result of lack of tying between the edges of the floor slab with the central section. In addition, the shallowness of the foundation, particularly at the corner of the north west facing wing adjacent to the walnut tree, has accelerated the movement to this wing.
REMEDIAL MEASURES
Due to the lack of depth of the foundations, we would recommend that underpinning of the edges of the slab is required. This would possibly be best achieved by installing mini-piles and ground beams as indicated in the enclosed details, although we would suggest that the advice of a specialist in underpinning should be sought."
Section 14A of the Limitation Act 1980
(1) This section applies to any action for damages for negligence, other than one to which section 11 of this Act applies, where the starting date for reckoning the period of limitation under subsection (4) (b) below falls after the date on which the cause of action accrued.
(2) Section 2 of this Act shall not apply to an action to which this section applies.
(3) An action to which this section applies shall not be brought after the expiration of the period applicable in accordance with subsection (4) below.
(4) That period is either—
(a) six years from the date on which the cause of action accrued; or(b) three years from the starting date as defined by subsection (5) below, if that period expires later than the period mentioned in paragraph (a) above.
(5) For the purposes of this section, the starting date for reckoning the period of limitation under subsection (4) (b) above is the earliest date on which the plaintiff or any person in whom the cause of action was vested before him first had both the knowledge required for bringing an action for damages in respect of the relevant damage and a right to bring such an action.
(6) In subsection (5) above "the knowledge required for bringing an action for damages in respect of the relevant damage" means knowledge both—
(a) of the material facts about the damage in respect of which damages are claimed; and(b) of the other facts relevant to the current action mentioned in subsection (8) below.
(7) For the purposes of subsection (6)(a) above, the material facts about the damage are such facts about the damage as would lead a reasonable person who had suffered such damage to consider it sufficiently serious to justify his instituting proceedings for damages against a defendant who did not dispute liability and was able to satisfy a judgment.
(8) The other facts referred to in subsection (6) (b) above are—
(a) that the damage was attributable in whole or in part to the act or omission which is alleged to constitute negligence; and(b) the identity of the defendant; and(c) if it is alleged that the act or omission was that of a person other than the defendant, the identity of that person and the additional facts supporting the bringing of an action against the defendant.
(9) Knowledge that any acts or omissions did or did not, as a matter of law, involve negligence is irrelevant for the purposes of subsection (5) above.
(10) For the purposes of this section a person's knowledge includes knowledge which he might reasonably have been expected to acquire—
(a) from facts observable or ascertainable by him; or(b) from facts ascertainable by him with the help of appropriate expert advice which it is reasonable for him to seek;
but a person shall not be taken by virtue of this subsection to have knowledge of a fact ascertainable only with the help of expert advice so long as he has taken all reasonable steps to obtain (and, where appropriate, to act on) that advice.
Mr Eagle's case
i) The "relevant damage" for the purposes of section 14A(5), the "damage in respect of which damages are claimed" for the purposes of section 14A(6)(a) and "the damage" for the purposes of section 14A(7) is the failure of and damage to the concrete base by virtue of the faulty design of the base by Redlime.ii) Mr Eagle did not have actual knowledge of the damage until 16 November 2006 and cannot be fixed with constructive knowledge of the damage before that date by virtue of section 14A(10). The existence and cause of the damage were facts ascertainable only with the help of expert advice. Mr Eagle had taken all reasonable steps to obtain such advice and had obtained the expert report of Hannah Reed within just over a month of his letter to Redlime dated 9 October 2006.
iii) Time does not start to run against Mr Eagle from the date when he first noticed cracking in the superstructure of the kennels as, having regard to the nature and location of the cracking, Mr Eagle had a not unreasonable belief that such cracking was caused by natural settlement and did not have any grounds for a reasonable belief that such cracking pointed towards a cause of action against Redlime.
iv) Time does not start to run against Mr Eagle from the date when he requested Redlime to inspect the building or from the date of his letter to Redlime dated 9 October 2006 because at those dates Mr Eagle did not know, and could not have known without expert evidence, that the cause of the cracking was the wholesale and fundamental failure of the base. Mr Eagle wrongly believed that the cause of the cracking was the manner in which the Aco drains had been inserted into the base rather than the design of the base itself. Reliance is placed on the decision of the Court of Appeal in Hallam-Eames v Merrett Syndicates Ltd [1995] 7 Med LR 122 for the proposition that the act or omission that Mr Eagle must have knowledge of was that which was causally relevant for the purposes of an allegation of negligence.
v) The fact that Mr Eagle noted prior to 16 November 2006 the separation of the Aco drains in the floor and his suspicion that the same was due to the manner in which the drains were inserted does not start time running against him from that earlier period. On behalf of Mr Eagle, Mr Flood submits that the present case is distinguishable from Hamlin v Edwin Eames [1996] PNLR 398. That authority related to a negligent surveyor's report where the claimant had knowledge of the negligence through the emergence of minor damage in the building only for far more serious damage that had also been missed in the report to emerge later. The court held that the single cause of action was the negligence of the surveyor for the purposes of limitation even if multiple types of damage emerged at later dates. Accordingly, the present case can be distinguished from Hamlin v Edwin Eames on two grounds:
a) The court expressly stated in its judgement that the case was to be contrasted with cases involving claims against those with responsibility for defective building work, where there may well be different causes of action against different contractors and in respect of different categories of damage to the same building and gave as an example the case of Steamship Mutual Underwriting Association v Trollope & Colls (City) Ltd 33 BLR 77 in which a number of different problems emerged in a building at different times.b) Mr Eagle's suspicion at the time that he invited Redlime to view the building and wrote his letter to Redlime on 9 October 2006 was that Redlime had used the wrong method to insert the prefabricated drains into the completed slab. Mr Eagle did not know that the cause of the problem was not the construction of the channels in which to insert the drain but the fundamental design of the whole concrete slab.
"Thus, as to the degree of certainty required, Lord Donaldson of Lymington MR gave valuable guidance in Halford v Brookes [1991] 1 WLR 428, 443. He noted that knowledge does not mean knowing for certain and beyond possibility of contradiction. It means knowing with sufficient confidence to justify embarking on the preliminaries to the issue of any writ, such as submitting a claim to the proposed defendant, taking advice, and collecting evidence: "Suspicion, particularly if it is vague and unsupported, will indeed not be enough, but reasonable belief will normally suffice." In other words, the claimant must know enough for it to be reasonable to begin to investigate further."
Similarly, there is the passage in the speech of Lord Brown at paragraph 90, where he said that all that is required is sufficient knowledge
"… to realise that there is a real possibility of his damage having been caused by some flaw or inadequacy in his advisers' investment advice, and enough therefore to start an investigation into that possibility which section 14A then gives them three years to complete."
At paragraph 126, Lord Mance stated:
"Actual knowledge within (a) involves knowing enough to make it reasonable to investigate whether or not there is a claim against a particular potential defendant."
Similarly, in Ministry of Defence v AB & Ors [2010] EWCA Civ 1317, the Court of Appeal had to consider: when is a belief which is not founded on medical, scientific or other expert advice sufficient to amount to knowledge? At paragraph 91, reference was made to the speech of Lord Nicholls above and, on that basis, the test was stated to be "... whether the claimant had such a degree of belief that, objectively considered it was reasonable to expect him to commence investigating whether or not he had a viable case…"
"10….... Consistently with the underlying statutory purpose, Slade LJ observed in Wilkinson v Ancliff (BLT) Ltd [1986] 1 WLR 1352, 1365, that it is not necessary for the claimant to have knowledge sufficient to enable his legal advisers to draft a fully and comprehensively particularised statement of claim. Where the complaint is that an employee was exposed to dangerous working conditions and his employer failed to take reasonable and proper steps to protect him it may well be sufficient to set time running if the claimant has "broad knowledge" of these matters. In the clinical negligence case of Hendy v Milton Keynes Health Authority [1992] 3 Med LR 114, 117-118, Blofeld J said a plaintiff may have sufficient knowledge if she appreciates "in general terms" that are problems capable of being attributed to the operation, even where particular facts of what specifically went wrong or how or where precise error was made is not known to her. In proceedings arising out of the manufacture and sale of the drug Opren Purchas LJ said that what was required was knowledge of the "essence" of the act or omission to which the injury was attributable: Nash v Eli Lilly & Co [1993] 1 WLR 782, 799. In Spargo v North Essex District Health Authority [1997] PIQR P235, P242, Brooke LJ referred to "a broad knowledge of the essence" of the relevant acts or omissions. To the same effect, Hoffmann LJ said section 14(1)(b) requires that "one should look at the way the plaintiff puts his case, distil what he is complaining about and ask whether he had, in broad terms, knowledge of the facts on which the complaint is based": Broadley v Guy Clapham & Co [1994] 4 All ER 439, 448.
"11 A similar approach is applicable to the expression "attributable" in section 14A(8)(a). The statutory provisions do not require merely knowledge of the acts or omissions alleged to constitute negligence. They require knowledge that the damage was "attributable" in whole or in part to those acts or omissions. Consistently with the underlying statutory purpose, "attributable" has been interpreted by the courts to mean a real possibility and not a fanciful one, a possible cause of the damage as opposed to a probable one: Nash v Eli Lilly & Co [1993] 1 WLR 782, 797-798. Thus, paraphrasing, time does not begin to run against the claimant until he knows there is a real possibility his damage was caused by the act or omission in question."
See also per Lord Walker at paragraph 66, Lord Brown at paragraph 90 and Lord Mance at paragraph 112 and also paragraph 122 where he emphasised that the authorities establish that the word "attributable" means here "capable of being attributed" rather than "caused by".
Knowledge of the damage
Knowledge that the damage was attributable in whole or in part to the act or omission which is alleged to constitute negligence
"In other words, the act or omission of which the plaintiff must have knowledge must be that which is causally relevant for the purposes of an allegation of negligence……It is this idea of causal relevance which various judges of this court have tried to express by saying the plaintiff must know "the essence of the act or omission to which the injury is attributable (Purchas LJ in Nash v Eli Lilly & Co [1993] 1 WLR 782, 799) or "the essential thrust of the case" (Sir Thomas Bingham MR in Dobbie [1994] 1 WLR 1238) or that one should
"…look at the way the plaintiff puts his case, distil what he is complaining about and ask whether he had in broad terms knowledge of the facts on which complaint is based."
(Hoffman LJ in Broadley [1993] 4 Med LR 328, 332.)"
Relying on this passage, Mr Flood submits that, so far as Mr Eagle's knowledge is concerned, the "causally relevant" test was not satisfied until after he (Mr Eagle) received the report from Hannah Reed. In particular, Mr Flood submits that prior to receipt of that report, Mr Eagle did not know that the damage in question was "attributable" to or caused by any relevant negligent act or omission on the part of Redlime. I fully accept the importance of the "causally relevant" test. However, in my judgment, Mr Flood's submission begs the question as to the degree of knowledge that is required for the purposes of subsection (8). In that context, the authorities cited above make plain that knowledge does not mean knowing for certain. Adopting Lord Nicholl's paraphrasing, Mr Eagle must know enough for it to be reasonable to begin to investigate further; and that there is a real possibility that the damage was caused by an act or omission by Redlime.
Constructive Knowledge
Conclusion