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In Chandra and another v Brooke North (a firm) and another; BPC Hotels Ltd v Brooke North (a firm) and another  All ER (D) 88 (Dec), the Court of Appeal allowed an appeal against a permission to amend decision. The proposed amendments sought to introduce a new cause of action after the expiry of the limitation period. In doing so, the Court of Appeal considered sections 35(3) and 14A of the Limitation Act 1980, as well as the following authorities: Welsh Development Agency (WDA), Steamship Mutual and TetraPak. This judgment is, however, of particular interest in relation to its practical guidance to practitioners on the options available to the court on an amendment application which raises limitation issues.
Note: the proposed amendments should be considered by reference to the 'original' statement of case rather than the claim form as the statement of claim should be narrower in its scope, or
If the claimant applies for permission to amend and there is likely to be an objection on the basis the new claim it seeks to introduce is statute barred, it should take steps to 'protect itself'. The most obvious step would be to issue new proceedings in respect of the claim. This would 'stop the clock' on any limitation issues and mean the claimant is more likely to be able to pursue its 'new claim' even if permission to amend to include that new claim is refused.
Note: For more information on various issues raised in this application, subscribers to Lexis®PSL can see: Amending a statement of case and Limitation—overview.
Court: Court of Appeal, Civil Division
Judges: Lord Justice Jackson (leading judgment) with Lord Justices Laws and McFarlane (in agreement)
Date of judgment: 5 December 2013
Note: subscribers to Lexis®PSL can access our detailed analysis of the lower court's decision under appeal in the instant application by clicking this link: CPR 23.10 and applications to revoke or setting aside an order made without a hearing (Chandra v Brooke North).
This article was first published on Lexis®PSL Dispute Resolution on 11 December 2013. Click here for a free 24 trial of Lexis®PSL.
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