Court of Appeal decision on accrual of cause of action in negligence

Watkins and anor v Jones Maidment Wilsom (a firm) [2008] EWCA Civ 134 was an appeal against a finding in relation to a number of preliminary issues, which were all directed to ascertaining the date of the accrual of the causes of action on which the claimants relied.

The Court of Appeal held that the claims in professional negligence were statute barred. It found that any loss suffered as a result of entering into a building agreement arose when that agreement was entered into, as that was when the chance of negotiating a better agreement was lost (Nykredit distinguished). Any loss suffered as a result of subsequently waiving rights under the building agreement (on allegedly negligent advice) arose at the time of the waiver, as those rights were an asset capable of valuation at that time even though they could not have been used until a later date (Sephton distinguished).

The Court of Appeal's application of existing authorities in this judgment is instructive for those grappling with the difficult issue of when a cause of action in negligence accrues for limitation purposes.