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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> The South West Strategic Health Authority v Bay Island Voyages [2015] EWCA Civ 708 (14 July 2015) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2015/708.html Cite as: [2015] 2 Lloyd's Rep 652, [2016] 4 All ER 107, [2015] EWCA Civ 708, [2016] QB 503, [2016] 2 WLR 649, [2016] 1 All ER (Comm) 821 |
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ON APPEAL FROM THE HIGH COURT OF JUSTICE
QUEEN'S BENCH DIVISION, BRISTOL DISTRICT
REGISTRY MERCANTILE COURT
HIS HONOUR JUDGE HAVELOCK-ALLAN QC
1BS05742
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE TOMLINSON
and
LORD JUSTICE KITCHIN
____________________
The South West Strategic Health Authority |
First Defendant/Appellant |
|
- and - |
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Bay Island Voyages |
Third Party/ Respondent |
____________________
Simon Kverndal QC and Ben Gardner (instructed by DWF) for the Third Party/Respondent
Hearing dates: 9 June 2015
____________________
Crown Copyright ©
Lord Justice Tomlinson:
"1. Entitlement to contribution.
(1) Subject to the following provisions of this section, any person liable in respect of any damage suffered by another person may recover contribution from any other person liable in respect of the same damage (whether jointly with him or otherwise).
(2) A person shall be entitled to recover contribution by virtue of subsection (1) above notwithstanding that he has ceased to be liable in respect of the damage in question since the time when the damage occurred, provided that he was so liable immediately before he made or was ordered or agreed to make the payment in respect of which the contribution is sought.
(3) A person shall be liable to make contribution by virtue of subsection (1) above notwithstanding that he has ceased to be liable in respect of the damage in question since the time when the damage occurred, unless he ceased to be liable by virtue of the expiry of a period of limitation or prescription which extinguished the right on which the claim against him in respect of the damage was based."
"ARTICLE 14
Basis of Claims
No action for damages for the death of or personal injury to a passenger, or for the loss of or damage to luggage, shall be brought against a carrier or performing carrier otherwise than in accordance with this Convention.
ARTICLE 16
Time-bar for actions
1. An action for damages arising out of the death of or personal injury to a passenger or for the loss of or damage to luggage shall be time-barred after a period of two years.
2. The limitation period shall be calculated as follows:
a) in the case of personal injury, from the date of disembarkation of the passenger;…
3. The law of the court seized of the case shall govern the grounds of suspension and interruption of limitation periods, but in no case shall an action under this Convention be brought after the expiration of a period of three years from the date of disembarkation of the passenger or from the date of when disembarkation should have taken place, whichever is later.
4. Notwithstanding paragraphs 1, 2 and 3 of this Article, the period of limitation may be extended by a declaration of the carrier or by agreement of the parties after the cause of action has arisen. The declaration or agreement shall be in writing."
Discussion
"ARTICLE 4
Performing carrier
1.
If the performance of the carriage or part thereof has been entrusted to a performing carrier, the carrier shall nevertheless remain liable for the entire carriage according to the provisions of this Convention. In addition, the performing carrier shall be subject and entitled to the provisions of this Convention for the part of the carriage performed by him.
2.
The carrier shall, in relation to the carriage performed by the performing carrier, be liable for the acts and omissions of the performing carrier and of his servants and agents acting within the scope of their employment.
3.
Any special agreement under which the carrier assumes obligations not imposed by this Convention or any waiver of rights conferred by this Convention shall affect the performing carrier only if agreed by him expressly and in writing.
4.
Where and to the extent that both the carrier and the performing carrier are liable, their liability shall be joint and several.
5.
Nothing in this Article shall prejudice any right of recourse as between the carrier and the performing carrier."
Nowhere else in the Convention are rights of recourse as between the carrier and the performing carrier dealt with. This is unsurprising, as such matters will be governed by the terms of the contractual arrangements concluded between carrier and performing carrier. Furthermore, rights of recourse as between carriers and other parties are simply not mentioned.
"… The Convention is concerned with certain rules only, not with all rules relating to international carriage by air. It does not purport to provide a code which is comprehensive of all the issues that may arise. It is a partial harmonisation, directed to the particular issues with which it deals."
A little later in his speech, at page 477, Lord Hope said:-
"In its context the purpose [of article 24 of the Warsaw Convention] seems to me to be to prescribe the circumstances – that is to say, the only circumstances – in which a carrier will be liable in damages to the passenger for claims arising out of his international carriage by air… the purpose is to ensure that, in all questions relating to the carrier's liability, it is the provisions of the Convention which apply and that the passenger does not have access to any other remedies, whether under the common law or otherwise, which may be available within the particular country where he chooses to raise his action." (Emphasis supplied.)
Mr Kverndal submitted that this passage does not indicate that Lord Hope regarded the Warsaw Convention as applicable alone to claims by passengers against carriers. He suggested that Lord Hope would have appreciated that it is implicit in section 5(2) of the Carriage by Air Act 1961 that Parliament at any rate regarded that Convention as prima facie applicable to claims for contribution between tortfeasors. Section 5(2) of the Carriage by Air Act 1961, as originally enacted, provides:-
"Article 29 in the First Schedule of this Act shall not be read as applying to any proceedings for contribution between tortfeasors, but no action shall be brought by a tortfeasor to obtain a contribution from a carrier in respect of a tort to which the said Article 29 applies after the expiration of two years from the time when judgment is obtained against the person seeking to obtain the contribution."
Article 29 of the Warsaw Convention provides:-
"(1) The right to damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.
(2) The method of calculating the period of limitation shall be determined by the law of the court seised of the case."
I respectfully doubt if section 5(2) can be said to reflect a settled Parliamentary view that the Warsaw Convention governs claims to contribution. More likely is it I think that section 5(2) was added out of an abundance of caution after the earlier provision, section 5(1), which provides a time limit for actions against a carrier's servants or agents, which actions are not themselves within the scope of the Convention. The time limit provided by section 5(1), expressed in language which traditionally would be understood in England as barring the remedy rather than extinguishing the claim, is in contradistinction to that which applies pursuant to Article 29 in claims against carriers. Section 5(2) clarifies that the same remedy-barring time limit as is applicable to claims against a carrier's servants or agents shall be applicable to claims for contribution between tortfeasors.
"Right of recourse against Third Parties
Nothing in this Convention shall prejudice whether a person liable for damage in accordance with its provisions has a right of recourse against any other person."
"In Chubb Insurance Co of Europe SA v Menloe Worldwide Forwarding Inc, an insurer had sued UPS Supply Chain Solutions Inc, as contracting carrier, in respect of damage to cargo; that claim was settled and sums paid. UPS brought an action for contribution against Qantas, the actual carrier. At first instance it was held that this action was caught by art 35 and time-barred. The Court of Appeals reversed. It held that art 35 extinguished the 'right to damages' and arts 17 to 19 of the Convention set out the circumstances in which a carrier is 'liable for damage'. The Court held that while the original claim by the insurer against UPS asserted such a right, UPS's third-party action against Qantas did not. It was not an action seeking compensation for damage sustained to the cargo; rather it sought indemnification (and contribution) from the actual carrier in respect of sums already paid to the insurer. The Montreal Convention referred to these local law causes for action for indemnification, contribution, apportionment, or set-off, not as a 'right to damages', but as a 'right of recourse'. If art 35 were construed to extinguish a carrier's 'right of recourse' at the expiration of the two-year period, then the Convention would do precisely what art 37 says it does not: 'prejudice the question whether a person liable for damage… has a right of recourse against any other person'. To avoid an explicit conflict between arts 35 and 37, the 'right to damages' extinguished by art 35 must be understood not to include a carrier's 'right of recourse' against another carrier. The court also referred to the use of 'right of recourse' in art 48 and (perhaps less convincingly) to art 45 which, in dealing with the joinder of one carrier by another, adds 'the procedure and effects being governed by the law of the court seized the case'. The court declined to follow the contrary lower court decisions under the Warsaw Convention but cited the Canadian decision in Connaught Laboratories Ltd v Air Canada with approval.
The New South Wales Court of Appeal reached the same conclusion in United Airlines v Sercel [2012] NSWCA 24, after reviewing the cases referred to above and the comments made in this book."
"In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is brought within one year after delivery of the goods or the date when the goods should have been delivered…"
"The contract contemplates the possibility of a cross-claim by the charterers in respect of loss or damage to the cargo and it expressly provides by incorporation of article III, r. 6 of the Hague Rules that the carrier and the ship shall be discharged unless suit is brought within one year after the date of delivery or the date when delivery should have been made. This amounts to a time bar created by contract. But, and I do not think that sufficient recognition to this has been given in the courts below, it is a time bar of a special kind, viz., one which extinguishes the claim (cf. article 29 of the Warsaw Convention 1929) not one which, as most English statutes of limitation (e.g. the Limitation Act 1939, the Maritime Conventions Act 1911), and some international conventions (e.g. the Brussels Convention on Collisions 1910, article 7) do, bars the remedy while leaving the claim itself in existence. Therefore, arguments to which much attention and refined discussion has been given, as to whether the charterer's claim is a defence, or in the nature of a cross-action, or a set-off of one kind or another, however relevant to cases to which the Limitation Act 1939 or similar Acts apply, appear to me, with all respect, to be misplaced. The charterers' claim, after May 1974 and before the date of the writ, had not merely become unenforceable by action, it had simply ceased to exist, and I fail to understand how a claim which has ceased to exist can be introduced for any purpose into legal proceedings, whether by defence or (if this is different) as a means of reducing the respondents' claim, or as a set-off, or in any way whatsoever. It is a claim which, after May 1974, had no existence in law, and could have no relevance in proceedings commenced, as these were, in October 1974. I would add, though this is unnecessary since the provision is clear in its terms, that to provide for the discharge of these claims after 12 months meets an obvious commercial need, namely, to allow shipowners, after that period, to clear their books."
"No action shall be maintainable to enforce any claim or lien against a vessel or her owners in respect of any damage or loss to another vessel, her cargo or freight, or any property on board her, or damages for loss of life or personal injuries suffered by any person on board her, caused by the fault of the former vessel, whether such vessel be wholly or partly in fault, or in respect of any salvage services, unless proceedings therein are commenced within two years from the date when the damage or loss or injury was caused or the salvage services were rendered, and an action shall not be maintainable under this Act to enforce any contribution in respect of an overpaid proportion of any damages for loss of life or personal injuries unless proceedings therein are commenced within one year from the date of payment:…"
To similar effect is the language in the Limitation Act 1980, as it now is, prescribing a time limit for actions founded on tort or simple contract, which provides "an action founded on tort/simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued." The Brussels Convention on Collisions 1910 at Article 7 provides:-
"Actions for the recovery of damages are barred after an interval of two years from the date of the casualty."
"14B Overriding time limit for negligence actions not involving personal injuries.
(1) An action for damages for negligence, other than one to which section 11 of this Act applies, shall not be brought after the expiration of fifteen years from the date (or, if more than one, from the last of the dates) on which there occurred any act or omission—
(a) which is alleged to constitute negligence; and
(b) to which the damage in respect of which damages are claimed is alleged to be attributable (in whole or in part).
(2) This section bars the right of action in a case to which subsection (1) above applies notwithstanding that—
(a) the cause of action has not yet accrued; or
(b) where section 14A of this Act applies to the action, the date which is for the purposes of that section the starting date for reckoning the period mentioned in subsection (4)(b) of that section has not yet occurred;"
Lloyd LJ said this:-
"43 Mr Tolley submitted that when the period prescribed by this section expires, the person otherwise entitled to the benefit of the cause of action ceases to be entitled to it altogether, so that the section extinguishes the right, rather than merely barring the remedy of court proceedings. He then submits, if that be right, that when the period expired in this case, as it did before the issue of the proceedings, the Claimant lost its right to claim, even though the operation of other limitation periods had been interrupted under the General Rolling Stock principle.
44 In my judgment Mr Tolley's premise is incorrect. As appears from the text of the section, subsection (1) uses the classic language of limitation: an action shall not be brought after the period has expired. That gives no reason to suppose that the operation of the section is any different in this respect from that of section 2 or section 14A. Subsection (2) uses the different phrase "this section bars the right of action". Mr Tolley submits that this means that it extinguishes the creditor's rights altogether. I disagree.
45 The Limitation Act 1980 does expressly provide for the extinction of title in the contexts of chattels and land: section 3(2) dealing with conversion - "the title of that person to the chattel shall be extinguished" – section 17 dealing with claims to recover land – "the title of that person to the land shall be extinguished" – and similar provisions in section 18(2) and (3). There is another such reference in section 11A(3) but that was introduced by the Consumer Protection Act 1987, after the introduction of section 14B, so it is not strictly relevant to the interpretation of section 14B and I therefore ignore it.
46 Mr Tolley submitted that section 14B should be read as extinguishing the right because of the need for finality so as to give proper effect to the ultimate long-stop provision introduced by the Latent Damage Act 1986 as the counterpart for extending the time within which a claim can be brought under section 14A. That could be a legitimate policy behind the pair of provisions, but it seems to me that all depends on the language of the section. Nothing in section 14B(1), which is the operative provision, suggests that the effect of the section is to be any different from that of other limitation provisions in the same field (i.e. not dealing with questions of title to assets) such as section 2 or section 14A. Mr Tolley therefore has to show that subsection (2), which, though certainly necessary, is explanatory, demonstrates that subsection (1) is intended to have a different effect from that which would normally follow from its own terms. He says this is the effect of the words "bars the right of action". Although it was not necessary to his decision Mr Justice David Steel said that he would have accepted this submission: see paragraph 26 of his judgment.
47 I respectfully disagree. It seems to me that words far more specific than these would be necessary in order to show that a section which provides that "an action … shall not be brought" means that the cause of action is extinguished. It is true that in section 14B it is necessary to cover also the case where the cause of action has not yet accrued, so that to speak of it being extinguished would be odd (though I note that this is what section 11A(3) does). Additional words would be needed, such as to say that the right of action shall be extinguished or, as the case may be, shall not arise. The natural reading of the words used in subsection (2) is that they do no more than summarise the effect of subsection (1). In that, it seems to me, the words used are perfectly appropriate to refer to a provision which precludes an action being brought, but does no more. They mean the same as if subsection (2) had said "this section prevents an action being brought …"
48 Mr Tolley showed us passages from McGee on Limitation Periods, 4th edition (2002) in which the view is expressed that the section should be read as extinguishing the cause of action, particularly by reference to its impact on contribution claims, by reference to section 1(3) of the Civil Liability (Contribution) Act 1978. With all respect to the learned author, I am not persuaded by his arguments. It seems to me that the words of the section show the way to the correct reading, starting from the proposition that the expiry of a period of limitation does not normally extinguish rights, that where it does (in cases of title) there is a particular reason for it, and the Act says so expressly, that it does not say so in the present case, and there is not the same reason for it to do so, that the language of subsection (1) does not point to any different operation of this limitation period from those under sections 2 or 14A, and that the language of subsection (2) is consistent with this and does not call for a different reading."
Moore-Bick LJ delivered a judgment to similar effect, including:-
"66 Mr. Tolley submitted that, unlike section 14A, section 14B of the Limitation Act 1980 is substantive rather than procedural in nature. In other words, it does not merely bar the right to bring an action; it operates so as to discharge or extinguish the legal rights which the action would be brought to enforce.
67 In my view that is not the natural meaning of the words used in the section. In common with sections 2 (tort), 5 (simple contract), 7 (awards) and 8 (specialties), to mention but a few, as well as section 14A, the operative words of subsection (1) are "An action for damages for negligence . . . . . . shall not be brought after the expiration of . . . .". In a system in which the distinction between the right to bring proceedings and the substantive legal rights underlying those proceedings is well recognised the natural and ordinary meaning of such words is to prevent the bringing of an action, not to extinguish the rights on which any such action is based. It is accepted that all the other sections of the Act in which similar language is used are procedural in nature and one would therefore expect the same to be true of section 14B(1). Moreover, one can see from other sections, notably sections 3 (title to chattels), 11A (defective products), 17 (title to land) and 18 (equitable interests in land) that where Parliament wished to extinguish substantive rights it did so expressly.
…
69 It is said that the words "bars the right of action" indicate an intention to bar the legal rights in question rather than merely the right to bring proceedings, especially in the light of the fact that the section is to have effect even though the cause of action has not yet accrued. In my view however, this places more weight on the language of the subsection than it will bear. When one reads the section as a whole I think it is clear that subsection (2) is intended to complement subsection (1) which itself contains the principle which the section as a whole enacts. If that is correct, one would not expect subsection (2) to be significantly different in its effect from subsection (1). Once one moves from the language of prohibition ("an action shall not be brought") to the language of positive effect a different form of words becomes inevitable. In my view that accounts for the use of the expression "bars the right of action". In any event, it is one which in my view is entirely apposite to describe the effect of a procedural time bar since its effect is to remove or "bar" the right to bring an action. The fact that it is expressed to have that effect notwithstanding that the cause of action has not yet accrued is perhaps anomalous, but is explicable on the grounds that it is intended to make it clear that a right that would otherwise arise, if at all, only at a later date is intended to be affected. I can see nothing in the language of subsection (2), therefore, to indicate that it is intended to extinguish substantive legal rights."
"It is important to remember that the Act of 1924 was the outcome of an International Conference and that the rules in the Schedule [the Hague Rules] have an international currency. As these rules must come under the consideration of foreign courts it is desirable in the interests of uniformity that their interpretation should not be rigidly controlled by domestic precedents of antecedent date, but rather that the language of the rules should be construed on broad principles of general acceptation."
"I think that the correct approach is to interpret the English text, which after all is likely to be used by many others than British businessmen, in a normal manner, appropriate for the interpretation of an international convention, unconstrained by technical rules of English law, or by English legal precedent, but on broad principles of general acceptation: Stag Line Ltd v Foscolo, Mango and Co. Ltd [1932] AC 328, per Lord Macmillan, at page 350. Moreover, it is perfectly legitimate in my opinion to look for assistance, if assistance is needed, to the French text."
I will revert in a moment to the French text of the Athens Convention, which was executed in two texts, English and French, expressed to be of equal force.
"147. It follows from this that considerations of national or local law should not be allowed to intrude upon, let alone govern, any question of construction that may arise on the provisions for division of risk. As Lord Hope of Craighead said in Sidhu v British Airways Plc [1997] AC 430 at 453, "The code is intended to be uniform and to be exclusive also of any resort to the rules of domestic law." It is not right to attempt to construe the words of the Convention by reference to the rules of any domestic law, English, American, German or even French. We know that those rules were and are not all identical. The purpose of uniformity means that it is the duty of the national court to put to one side its views about its own law and other countries' laws. Quite apart from defeating uniformity, such a course can only lead to the complication of simple issues, the inadequately informed investigation of other legal systems and, most importantly, to uncertainty. In few areas can this be more deleterious than in relation to the historical treatment by various legal systems, including our own, of the topic of so called 'nervous shock'. Nor can it be acceptable, as was urged upon your Lordships by the carriers, to seek to find the 'lowest common denominator' of the delegates' national laws in 1929 and adopt that. Whilst it is important to have regard to the international consensus upon the understanding of the provisions of international conventions and hence to what the courts in other jurisdictions have had to say about the provision in question, the relevant point for decision always remains: what do the actual words used mean? (Stag Line Ltd v Foscolo, Mango & Co Ltd [1932] AC 328, the Hague Rules; James Buchanan & Co Ltd v Babco Forwarding & Shipping (UK) Ltd [1978] AC 141, CMR, Fothergill v Monarch Airlines Ltd [1981] AC 251, Amended Warsaw; Sidhu v BA, sup, Warsaw.)"
"Civil law jurisdictions generally treat statutes of limitation as matters of substance for the purpose of private international law. Accordingly, they determine questions of limitation in cases having a foreign element by reference to the same law as that which governs all the other substantive issues of the claim (the lex causae). It is instructive that one of the reasons for this contrast with the English rule is that civil law jurisdictions do not adopt a rigid distinction between right and remedy as the criterion for distinguishing between substance and procedure in private international law."
It was this report which led to the enactment of the Foreign Limitation Periods Act 1984, which the judge also regarded as of great significance as marking an important step in the "retreat of English law from the assumption that limitation periods are procedural and not of substantive effect."
"2.2 English law acknowledges two ways in which a plaintiff's right
to bring an action may be limited by the running of time: prescription, by virtue of which the plaintiff's title is extinguished when the relevant period expires, and limitation10 whereby lapse of time renders the plaintiff's right unenforceable by action but leaves the right itself intact.'11 For the purposes of private international law, our courts have classified rules falling into the former category (i.e. prescription) as matters of substance and those falling into the latter category (i.e. limitation) as matters of procedure.
2.3 In a case involving a foreign element the courts in this country will be required to classify both our domestic statute of limitation and the corresponding provision of the lex causae in order to determine the applicable period of limitation. As far as English statutes of limitation are concerned, subject to the exceptions mentioned below, the courts have generally accorded them a procedural classification with the result that, in accordance with the principle outlined in paragraph 2.1 above, they are considered to be applicable even to a case governed by a foreign substantive law. At the same time their approach towards a foreign statute of limitation has usually been to ignore any classification made by the court of the relevant foreign country. Instead our courts have applied to a relevant foreign statute the English test of whether the plaintiffs right is extinguished or whether his remedy is merely barred. This has led generally to a foreign statute of limitation being regarded by our courts as procedural and thus inapplicable to a case otherwise governed by foreign law. However, there may well be some exceptions to this, although there is no direct authority on the point. The cases where it is thought that our law would regard a statute of limitation as substantive, with the result that the lex causae would supply the appropriate limitation period, are those where a statute prescribes that ownership should be acquired by adverse possession, expressly extinguishes the former owner's title, or creates a new right and at the same time specifies that such right shall continue only for a limited period.
2.4 To summarise: the present approach of our courts in general to the classification of statutes of limitation, which we shall refer to as "the English rule", is that statutes of limitation are regarded as procedural and are, accordingly, governed by English law as the lex fori, irrespective of any classification accorded by a foreign court to its own statute of limitation.
…
3.5 Dissatisfaction with the English rule is to be found in other common law jurisdictions, where more radical changes in the rule have been either adopted or advocated. It should, however, be pointed out that these new approaches have generally resulted from an overall review of the limitations law of the jurisdiction in question, which has in turn entailed the adoption of a general system of prescription. Because the adoption of a prescriptive regime has not been accompanied by any specific alteration in the traditional rules of classification (which distinguish between substance and procedure by reference to right and remedy) the change to prescription has, in private international law terms, led in effect to the reclassification in these countries of their domestic statutes of limitation as substantive on the basis that they now bar the plaintiff's right and not merely his remedy. As matters of substance they will consequently only apply where the law of which they form a part is also the lex causae. This has not been the approach adopted to reform of the substantive law of limitation in this country. The Law Reform Committee rejected the idea that our law should be changed from one of limitation of actions to one of prescription and, as may be seen from the Limitation Act 1980, the traditional approach has been retained. We shall now consider the main areas of development in other common law jurisdictions.
10 For the purposes of the paragraphs that follow we have referred, to time bars generally in terms of limitation rather than of prescription. Where, however, the context calls for a particular distinction to be drawn between prescription and limitation (as defined above) we have said so.
11 The effect of most English time bars is merely to deny the plaintiff a right of action after a certain period has elapsed i.e. limitation. Exceptionally, however, in actions involving conversion of goods or title to land, the effect of the expiry of the relevant period of time is actually to extinguish the plaintiff's title: Limitation Act 1980, ss. 3 and 17."
"28. As with Article 29 WC it will be controversial in the various legal circles whether Article 35 MC contains an exclusion (forfeiture) period, or a limitation period. In the case of forfeiture ('condition precedent'/'délais préfix') the expiry of the period will cause the right to lapse, and the defendant does not need to enter a plea in order to assert the lapse of that right; the judge is officially bound to check the occurrence of the forfeiture. The claimant can avoid this loss of his rights by commencing the claim. The parties cannot waive the occurrence of the forfeiture; if the period counts as an exclusion or forfeiture period, then an interruption or cessation is not possible. In the case of a statute of limitations ('délai de prescription') the claim persists, even after the time limit has expired. After that point in time it is merely no longer possible to claim for it in law (however, the possibility of set-off still exists). Where the claimant asserts a claim that is time barred, it is necessary for the debtor to raise a plea of the claim being time barred in order to prevent the granting of such a time barred claim. The judge is not duty bound to check whether the claim is time barred. Consequently the parties can waive a plea on the basis of a claim being time barred, and they can extend the statute of limitations. The timing of the claim becoming statute barred can also be tolled by certain events or circumstance, or the statute of limitations can be suspended.
29. The English wording of Article 35 MC is clear: '… The right to damages shall be extinguished.' Similarly, the wording of the French text 'sous pain de déchéance' is unequivocal, as is the German translation ('Ausschlussfrist'): the injured party loses their claim against the air carrier, if they do not comply with the limitation period of Article 35 MC. The legal situation under the Montreal Convention has thus remained the same as under the Warsaw Convention.
30. In most countries the view is predominant that Article 29 WC refers to an exclusion period, or, as the case may be, to a condition precedent.
31. In academia the view that Article 29 WC refers to an exclusion period is also predominant.
32. Despite the clear wording of Article 29 WC there was a controversy in France for years whether the limitation period of Article 29 could be extended pursuant to national provisions ('délai de prescription') or not ('délai préfixe'). The Cour de Cassation held in a row of judgments that the period for commencing a claim of Article 29 was a ('délai de prescription'); consequently it is still possible to lodge claims after the expiry of the two-year period, thus, for example, in cases in which the injured party was still below the age of majority at the expiry of the limitation period. Despite this practice from the highest courts, the courts of lower instances in part tenaciously stuck to their interpretation, that Article 29 was an exclusion period ('délai préfix'). However, since the eighties, the lower courts in France also follow the practice of the Cour de Cassation."
"1. Toute action en réparation du préjudice résultant de la mort ou de lésions corporelles d'un passager, ou de perte ou de dommages survenus aux bagages, est soumise à une prescription de deux ans.
2. Le délai de prescription court:
…
3. La loi du tribunal saisi régit les causes de suspension et d'interruption des délais de prescription…"
Professor Berlingieri notes, at page 97, that "for the first time in a multilingual convention, the French word "prescription" corresponds in the English text to "time-bar". The equivalence between these two terms is confirmed by the Hamburg Rules in Article 20, [in] paragraph 1 of which the words "Any action… is time-barred" are used in the English text and the words "Toute action… est prescrité" are used in the French text." This is clearly to be contrasted with the English and French versions of Article 29 of the Warsaw Convention, as noted above, where the relevant language is "The right to damages shall be extinguished" and "L'action en responsabilité doit être intentée, sous peine de decheance."
"In German law there is a clear distinction between Verjährungsfrist (prescription period) and Ausschlussfrist (extinction period). Verjährungsfrist constitutes an Einrede (defence)-that is a right to refuse performance without affecting the substantive right. The substantive right remains as causa for any later performance of the debtor irrespective of Verjährung so that the creditor would not obtain an unjust enrichment. Ausschlussfrist constitutes an Einwendung (objection)-that is the right to refuse performance for the reason that the substantive right is extinguished. If the debtor performs after the extinction of the right he performs without causa and becomes entitled to claim restitution. In court proceedings an Einrede is only to be considered if the debtor makes an explicit plea while an Einwendung is considered ex officio. Whether the time bar is a Verjährungsfrist or an Ausschlussfrist depends on the relevant statutory provision. In particular, in maritime cases the special rules of the relevant conventions are applicable."
At page 102, in that section of his work dealing specifically with the Athens Convention, Professor Berlingieri records that "in Germany the prescription period is two years, as provided by the 1974 Athens Convention." This is achieved by section 606 of the Handelsgesetzbuch, the Commercial Code, which is to be found in Book 5, Maritime Trade, Chapter 2, which deals specifically with contracts for the carriage of passengers and their luggage. Section 606 is headed "Zweijährige verjährungsfrist" which in the official translation reads "Two-year statutory limitation period." The section continues "Folgende Ansprüche Verjähren in Zwei Jahren" which in the official translation reads "the following claims shall become time-barred after two years," proceeding thereafter at sub-paragraph 1 to identify those claims as "claims to compensation of damages for death or personal injury to a passenger, or for the loss of, physical damage to, or delayed re-delivery of luggage, insofar as such claims are subject to the regulations set out in this Book." This is very clearly the language of remedy barring, not claims extinction, which in German law is achieved by "Ausschlussfrist."
Lord Justice Kitchin:
Law Justice Laws:
Note 1 It is important to note in this discussion the two different senses in which the word “substantive” is commonly used. It is used in the context of the Foreign Limitation Periods Act 1984 to determine, for the purposes of classification, that for private international law purposes limitation is to be governed by the lex causae. In other contexts, it is used to mean that a time bar provision extinguishes the cause of action. [Back] Note 2 Note that, as appears hereafter, the word “prescription” is also in this context not always used in a consistent fashion. [Back]