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By Steven Carey2018-03-22T06:30:00
A recent judgment looks at the age-old question of when a cause of action accrues – alter it at your peril
You do some work for someone. When are you entitled to be paid for it? Or, to phrase the question more precisely: when does a cause of action for payment accrue in the eyes of the law? This was the very question that recently came before the courts in the case of ICE Architects Ltd vs Empowering People Inspiring Communities.
ICE Architects Ltd (‘ICE’) provided services for Empowering People Inspiring Communities (‘EPIC’). On 23 April 2009 ICE invoiced EPIC for a sum of £42,375 + VAT (then 15%) for its services. The sum was disputed and, following adjudication, ICE was (on an unspecified date) awarded £24,033.85. On 21 May 2015 ICE issued proceedings claiming the balance of the invoiced sum, namely £24,697.40. Quite why it took so long for ICE to pursue this is a mystery not solved by the case report.
The length of time it had taken ICE to start proceedings was not lost on EPIC. It successfully argued that the claim was time barred as proceedings had been commenced more than six years after ICE’s cause of action had accrued, which EPIC argued was when ICE had completed its services. ICE appealed.
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