- Limitation—claimant’s administration relevant to the application of ‘reasonable diligence’ test (OT Computers Ltd (in liquidation) v Infineon Technologies AG and Micron Europe Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- The objective standard
- Case details
Dispute Resolution analysis: This case considers novel issues concerning the application of section 32 of the Limitation Act 1980 (LA 1980). The Court of Appeal provides helpful guidance on the objective standard to be applied to claimants seeking to rely upon LA 1980, s 32 and in particular, the interpretation of the requirement that they exercise ‘reasonable diligence’ to identify and investigate potential causes of action. Practitioners should note that the objective standard to be applied may vary in accordance with the conduct and characteristics of the person in question. In the present case, the Court of Appeal found that the fact that the claimant, OT Computers Ltd (in liquidation) (OTC) had gone into administration before facts pertinent to the defendants’ wrongdoing had come to light was relevant to the question of whether it had exercised reasonable diligence for the purposes of LA 1980, s 32. Written by Chris Felton, partner and Katie Dyson, associate at Gardner Leader LLP.
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