LAW REFORM (CONTRIBUTORY NEGLIGENCE AND APPORTIONMENT OF LIABILITY) ACT 2001 - SECT 6
LAW REFORM (CONTRIBUTORY NEGLIGENCE AND APPORTIONMENT OF LIABILITY) ACT 2001 - SECT 6
(1) A person who is
liable in damages for harm suffered by another may recover contribution from a
third person who is also liable in damages for the same harm.
(2) The right to
contribution—
(a)
exists even though the act or omission that gave rise to the liability of the
person seeking to recover contribution may amount to an offence; and
(b)
extends to liabilities incidental to damages (such as a liability for
interest),
(but the right is subject to Part 3 and any other statutory provision 1
that may operate to modify, exclude or limit it in a particular case).
(3) An action for
contribution may be brought—
(a) by
way of third party proceedings, or proceedings between the parties, in an
action in which damages are sought from the person entitled to contribution;
or
(b) by
way of a separate action brought within the relevant time limit against the
person from whom contribution is sought.
(4) The "relevant time
limit" is the longer of the following—
(a) the
period within which the person who suffered the harm could have brought an
action against the person from whom contribution is sought;
(b) 2
years after the damages payable by the person entitled to contribution are
finally determined.
(5) The contribution
is to be an amount that is fair and equitable having regard to the extent of
each contributory's responsibility for the harm.
(6) In determining the
contribution to be made by a contributory whose liability for the harm is a
derivative liability, the court is to have regard to the act or omission from
which the liability arose.
(7) If it is fair and
equitable to do so, the court may exempt a person from liability to make
contribution or order that the contribution to be recovered is to amount to a
complete indemnity.
(8) An action for
contribution may be brought even though—
(a)
judgment in an action in which damages are sought for the relevant harm has
not yet been given; or
(b) the
person who suffered the harm has released the person from whom contribution is
sought from liability or has obtained judgment against that person; or
(c) a
notice that would be required if the person who suffered the harm were to
obtain a judgment against the person from whom contribution is sought has not
been given; or
(d) the
time within which the person who suffered the harm could have commenced an
action against the contributory has expired.
(9) However—
(a) if a
person is liable to indemnify another against the other's liability, the
person is (to the extent of the liability to indemnify) not entitled to
contribution from the other person under this section;
(b) a
contractual limitation or exclusion of liability operates to limit or exclude
an entitlement to contribution under this section if—
(i)
it arises from a contract made before the occurrence of
the act or omission that gave rise to the liability; and
(ii)
it would, assuming the person who suffered primary harm
had brought an action for damages against the person from whom contribution is
sought, have limited or excluded that person's right to recover damages;
(c) an
employer is not entitled to contribution from an employee under this section
unless the employee's wrongful act amounted to serious and wilful misconduct 2
.
Notes—
1 See for example section 111 of the
Supreme Court Act 1935 which deals with apportionment of liability in the
case of a collision between ships at sea.
2 Compare section 27C of the Wrongs Act 1936
.