The parties were each sureties for a debt to their bank from their company. The bank recovered the company’s debt from one surety, who in turn sought a contribution of half from the other. The respondent asserted that the claim was statute barred, because in this case it was a claim under a guarantee for which the limitation period was two years. The claimant succeeded, on the basis that the claim was in debt, because of the particular agreement. On its true construction the agreement between the parties created a debt, and the right to a contribution did not arise under the 1978 Act.
Citations:
Gazette 17-May-2001
Statutes:
Civil Liability (Contributions) Act 1978 1, Limitation Act 1980 10
Jurisdiction:
England and Wales
Limitation, Banking
Updated: 05 August 2022; Ref: scu.81213