Loss adjuster’s knowledge imputed to insurer

Graham v Entec Europe Ltd (t/a Exploration Associates) (CA TLR 10 September)

The defendant, on the instructions of the claimant’s insurers, carried out remedial works in respect of subsidence at his bungalow. The remedial works were completed by August 1992, but further cracking appeared and it was clear in September 1992 that further works of rectification were necessary. The insurers retained the chartered surveyor and loss adjuster who had investigated the original damage to investigate what further work was required and authorised him to instruct engineers and a civil/structural engineer. The engineer reported to the loss adjuster on 30 July 1997 that the scheme of underpinning did not properly address the problem of desiccation of the clay undersoil. In the end, it was agreed that the building could not be stabilised economically and it was written off. The insurers, subrogated for the owner of the bungalow, brought proceedings on 14 July 2000 against the original contractors. Was the claim time-barred pursuant to s14A(4)(b) of the Limitation Act 1980?