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At 10:33 06/08/98
+0100, Robert Stevens wrote:
It is true that some claims based upon unjustified
enrichment (if we accept the existence of such a category) But the relevant statute *doesn't* recognise any such
category. That is the point. In a statute which sets out to be comprehensive
and to include all possible private law claims, Parliament did not find
it necessary to mention restitution or unjust enrichment.
are classified as actions "founded on a simple
contract" for the purposes of s5 of the Limitation Act. This is surely
unsurprising. If they were not so classified the courts would have been
forced to conclude that no time limit applied to such claims as there
is no specific provision within the Act dealing with them. There is a specific category of contractual claims in
the statute, which includes contracts arising by operation of law. I appreciate
that you have difficulties with the notion of a contract arising by operation
of law, and would like to separate 'contract' from 'restitution', but
this is not a universal view, and I was discussing what the law actually
is. The Act treats both varieties of contract together.
It is also true that the time period applicable
is generally the same: 6 years. It is not true, however, that time starts
to run from the same point. Time runs from the accrual of the obligation. In the
example we were discussing, the obligation accrues at the same instant
whether you look at the matter in 'breach of contract' terms or 'unjust
enrichment terms'.
Time for claims based upon a breach of contract
will generally start from breach. Time for claims based upon unjustified
enrichment will generally, but not always, run from the time of enrichment.
This begs an important question, by smuggling in the
assumption that there is a coherent 'law of limitation for unjust enrichment
claims'. Every article I have read on the subject concludes, correctly
in my view, that there is no such coherent law, and that the law is a
hotch-potch, reflecting the miscellaneous nature of the claims covered.
Of course, many of those articles then go on to argue that the law should
be changed, to reflect some underlying order the authors think they see.
This is a different issue.
Claims based upon the commission of a tort also
generally carry a time limit of six years. Where a claim for breach of
contract and the commission of a tort exist concurrently the different
points at which time may begin to run can provide an incentive for the
pleading of the claim in tort rather than in contract (Henderson v Merrett).
The same may be true where a claim based upon unjustified enrichment exists
concurrently with a claim for breach of contract. That would be so if the contract/restitution line could
be drawn in the same way as the contract/tort line. But for a number of
reasons, which will be apparent on reading any good text on the history
of private law, the lines are of a very different character, and the separation
of contract from restitution incomplete at best.
Steve Hedley
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