Last amended by Limitation Act 1980 (reform proposals) in 2020. The Law Commission has recommended abolishing the special latent damage regime in favour of a unified discoverability limitation period in its 'Limitation of Actions' review, though reform has not yet been enacted.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Latent Damage Act 1986 addresses a fundamental problem in negligence limitation law: a claimant may not discover that property has been negligently damaged until years after the cause of action technically accrued. Under the pre-existing rule in Pirelli General Cable Works v Oscar Faber & Partners [1983] 2 AC 1 (HL), time ran from the date physical damage occurred, even if undetectable. The 1986 Act amended the Limitation Act 1980 by inserting a new s.14A, providing that in negligence claims for property damage (other than personal injury), the claimant has an alternative period of three years from the 'starting date' — the earliest date on which they had knowledge of the material facts. A 15-year longstop under s.14B prevents indefinite exposure: no action may be brought more than 15 years from the date of the defendant's negligent act or omission. The Act also introduced a new s.3, which provides that a fresh cause of action accrues to a subsequent purchaser of damaged property at the date of purchase. Together these provisions allow latent defect claims in construction, surveying, and professional negligence to proceed even where years have passed since the negligent act.
Key Points
- Inserts s.14A into the Limitation Act 1980 — provides an alternative 3-year limitation period running from the 'starting date' (the earliest date the claimant knew or ought reasonably to have known the material facts) for negligence property damage claims
- Material facts for s.14A include: (a) that the damage was significant; (b) that the damage was attributable in whole or in part to the act or omission alleged to constitute negligence; (c) the identity of the defendant; and (d) if applicable, that the act or omission was that of the defendant's employee or agent
- Inserts s.14B into the Limitation Act 1980 — absolute longstop of 15 years from the date of the negligent act or omission, regardless of knowledge; extinguishes the cause of action
- Section 3 — a fresh cause of action accrues to a subsequent purchaser of damaged property on the date they acquire the property, if damage was not previously discovered; allows the purchaser to bring a claim under s.14A from the date of acquisition
- Applies only to negligence claims for property damage — expressly excludes personal injury claims (which continue under s.11 and s.33 Limitation Act 1980) and latent defect claims in contract (which use the 6-year contractual period)
- Does not apply to deliberate concealment — s.32 Limitation Act 1980 (fraudulent concealment) continues to run time from the date of discovery regardless of the 15-year longstop
Parts & Sections
Amendments History
2011 — Limitation Act 1980 (case law development)
The Court of Appeal in Haward v Fawcetts [2006] UKHL 9 confirmed that s.14A knowledge must be actual or constructive and the 'starting date' is assessed objectively: the claimant is fixed with the date they ought reasonably to have known, not simply the date they subjectively discovered the facts.
2020 — Limitation Act 1980 (reform proposals)
The Law Commission has recommended abolishing the special latent damage regime in favour of a unified discoverability limitation period in its 'Limitation of Actions' review, though reform has not yet been enacted.
Frequently asked questions
- What types of legal claims does the Latent Damage Act 1986 cover?
- The Latent Damage Act 1986 applies specifically to negligence claims for property damage. It does not cover personal injury claims, which remain governed by different sections of the Limitation Act 1980. Additionally, it does not apply to latent defect claims brought in contract, which typically rely on the standard six-year contractual limitation period.
- How long do I have to bring a claim for latent property damage?
- Under section 14A of the Limitation Act 1980, as inserted by the Act, claimants have an alternative period of three years from the 'starting date'. This starting date is the earliest date on which the claimant had knowledge of the material facts, such as the significance of the damage and its attribution to the defendant's negligence.
- Is there a maximum time limit for bringing a latent damage claim?
- Section 14B of the Limitation Act 1980 establishes an absolute longstop of 15 years from the date of the defendant's negligent act or omission. This limit applies regardless of when the damage was discovered. If this 15-year period expires, the cause of action is extinguished and no further legal action can be brought.
- Can a new owner of a property bring a claim for latent defects?
- Yes, section 3 of the Act provides that a fresh cause of action accrues to a subsequent purchaser of damaged property on the date they acquire it, provided the damage had not been previously discovered. This allows the new owner to bring a claim under section 14A from the date of acquisition, even if the original owner's claim has expired.
- How is the 'starting date' for the limitation period calculated?
- The 'starting date' is determined objectively. According to case law, such as Haward v Fawcetts, the date is assessed based on when the claimant ought reasonably to have known the material facts, rather than simply when they subjectively discovered them. Knowledge includes understanding that the damage was significant and attributable to the defendant's negligence.