Limitation of actions

The facts of Seele Austria GmbH & Co KG v Tokio Marine Europe Insurance Ltd [2009] EWHC 2066 (TCC) are somewhat unusual, but the case reaffirms the principle that under a property policy the six-year limitation period for the assured’s claim runs from the date on which the insured peril occurred. In Seele this caused a problem where the claim had to be reformulated following earlier rulings of the English courts, and the question was whether the reformulated claim was time-barred.

Seele: the facts

In January 2002, Seele was employed by BLS to provide roof and wall glazing for a new building – St Martin’s Court in Paternoster Square. Seele supplied punched windows which were installed in the building, and then stone or brick cladding was added. Subsequently, the windows were found to be leaking: this was discovered testing the windows by hosing them down. The leaks caused internal damage to plasterboard and decor, and the defects could be made good only by removing the cladding and then taking the windows out so that they could be repaired. Some 150 windows were involved in this process. Substantial sums were incurred in making good the various losses that ensued. The losses were incurred in January 2003.