The Gazette 1986

GAZETTE

APRIL 1986

INSTALMENT

„ PREMIUM HI

PAYMENT PLAN

p r o v i d ed f or in t he D i r e c t i v e. T h e l i m i t a t i on p e r i od

begins to run f r om the d ay on which the plaintiff b e c ame

a w a r e, or s h o u ld r e a s o n a b ly h a ve b e c o me a w a r e, of t he

d a m a g e , t he d e f e ct a n d t he identity of t he p r o d u c e r.

H o w e v e r, t he laws of M e m b e r S t a t es r e g u l a t i ng s u s p e n-

sion or i n t e r r u p t i on of t he l i m i t a t i on p e r i od a re not

a f f e c t ed by t he D i r e c t i v e.

A r t i c le 11 r e q u i r es M e m b e r S t a t es to p r o v i de in their

legislat ion that t he r i g h ts e o n l e r r ed on t he i n j u r ed

p e r s on p u r s u a nt to t he D i r e c t i ve a re to be e x t i n g u i s h ed

on t he e x p i ry of a p e r i od of ten y e a rs f r om the d a t e on

wh i ch t he p r o d u c er put i n to c i r c u l a t i on t he a c t u al

p r o d u ct wh i ch c a u s ed t he d a m a g e , unless t he i n j u r ed

person has in the m e a n t i me instituted proceedings against

t he p r o d u c e r.

S o me points a b o ut these t wo Articles should be n o t e d.

First, in r e l a t i on to A r t i c le 10, t i me b e g i ns to r un f r o m

t he t i me t he p l a i n t i ff w a s, or o u g ht to h a ve b e c o m e,

a w a r e of t he d a m a g e , t he d e f e ct a n d t he i d e n t i ty of t he

p r o d u c e r. U n d e r p r e s e nt Irish law (as will be m e n t i o n ed

in m o r e detail b e l ow) t he " d i s c o v e r a b i l i t y" rule h as

been f a v o u r e d, but o u r law c o n c e n t r a t es on d i s c o v e ry of

t he d a m a g e a n d m a k e s n o a l l o w a n c es f or t he f a i l u re of

the victim e i t h er (a) t o a p p r e c i a te that t he d a m a g e is t he

result of a d e f e ct or (b) to i d e n t i fy t he d e f e n d a n t. If he

d o e s not or c a n n ot m a k e b o th of t h e se c o n n e c t i o ns

w i t h in t he s t a t u t o ry p e r i od that is his h a r d l u c k, unless

he c an b r i ng t he e a se w i t h in s o me e x c e p t i on s u ch as

f r a u d . "

It s h o u ld a l so be n o t ed t h at t he e f f e ct of A r t i c le 11 in

e x t i n g u i s h i ng t he i n j u r ed p e r s o n 's rights a f t e r t he e x p i ry

of ten y e a rs f r o m t he d a t e t he p r o d u c er put t he p r o d u ct

i n to c i r c u l a t i o n, is to r e n d er i n o p e r a t i ve t he law of

M e m b e r S t a t es r e g u l a t i ng s u s p e n s i on or i n t e r r u p t i on of

t he l i m i t a t i on p e r i od - o n t he basis of m i n o r i ty or m e n t al

i n c a p a c i t y, f or e x a m p l e. T r u e Ar t i c le 10 p r o v i d es t h at

t h e se laws " s h a ll not be a f f e c t ed by this D i r e c t i v e "; but

A r t i c le 11 is not c o n c e r n ed with a l i m i t a t i on p e r i od

w i t h in wh i ch an a c t i on mu st be t a k en but t he e x t i n c t i on

of r i g h t s.

T h e me r i ts a n d d i s a d v a n t a g es of Ar t i c le 1 1 h a v e been

widely d e b a t e d. In f a v o u r of t he a b s o l u te c u t - o ff p o i n t,

t he En g l i sh L aw C o mm i s s i on h as o b s e r v ed t h a t:

" I t is in t he p r o d u c e r 's interests that he s h o u ld be

a b le to close his b o o k s o n a p r o d u ct a f t er it h as been

in c i r c u l a t i on f or a fixed p e r i o d. It assists h im in

a s s e s s i ng t he risk a n d it facilitates i n s u r a n ce a n d

a m o r t i s a t i o n, t h us k e e p i ng t he i n s u r a n ce p r e m i um

d o w n . T h e r e is t h us s o me s a v i n g, albeit m a r g i n a l,

wh i ch r e d o u n ds to t he g e n e r al benefit of t he p u b l i c.

M o r e i m p o r t a n t, p e r h a p s, it sets a d a l e a f t e r wh i ch

t he p r o d u c er n o l o n g er h as t he b u r d en of p r o v i d i ng

that a p r o d u ct wh i ch h a s c a u s ed an a c c i d e nt w as not

d e f e c t i ve w h e n he put it i n to c i r c u l a t i o n. T h is b u r d e n

is i n c r e a s i n g ly d i f f i c u lt f or h im to d i s c h a r ge as t he

y e a rs p a ss a n d it s e ems o n ly fair that t h e re s h o u ld

c o m e a p o i nt w h e n it is e n t i r e ly r e m o v e d . ' "

As a g a i n st this, several o b j e c t i o ns m a y be m a d e to t he

t e n - y e ar c u t - o ff p o i n t. First, it is c r u de a n d a r b i t r a r y.

S o m e p r o d u c ts - v a r i o us t y p es of m a c h i n e ry or a i r c r a f t,

f or e x a m p le - m a y well be e x p e c t ed to last f or m o r e t h a n

ten y e a r s, so that it c o u ld p r o p e r ly be said of t h em (say)

twelve y e a rs a f t e r t h ey w e re put i n to c i r c u l a t i on t h a t, in

spite of their a g e, t h ey w e re " d e f e c t i v e ", l or o t h er

(Contd. on p. 77)

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