Limitation period

AXA Insurance Ltd v Akther & Darby Solicitors [2009] EWHC 635; SJ 19 May p26

The claimants alleged that its panel solicitors had breached its duty to vet applications for after-the-event (ATE) legal expenses insurance to ensure that they met its standard criteria. It argued that for the purposes of the limitation period no damage had occurred until each underlying claim failed and that where, but for the negligence, the claimant would not have entered into the transaction, damage was not suffered until its liability exceeded the assets. The court rejected that argument holding that the claimant had suffered loss in being committed to a greater risk and it would have been had the solicitors performed their duty and accordingly damage was suffered when each ATE policy was incepted, and the limitation period therefore ran from that date.