Understanding the Civil Liability (Contribution) Act 1978

What it is, how it works, limitation periods, a practical example, and what to do if you receive a contribution claim letter.

What Is the Civil Liability (Contribution) Act 1978?

The Civil Liability (Contribution) Act 1978 (“the Act”) governs the right of one party (often a defendant) to seek a financial contribution from another person who is also responsible for the same damage or loss.

This usually arises when:

  • There are multiple wrongdoers (“joint tortfeasors”),
  • A defendant settles a claim or pays damages, and
  • They believe another party should contribute towards that liability.

The Act allows a party who has paid to recover a just and equitable portion from others who are also liable.

Who Can Be Pursued for a Contribution?

A contribution claim can be brought against anyone who is also liable for the same damage, including:

  • Contractors
  • Sub-contractors
  • Former employers
  • Co-defendants
  • Insurers (in some circumstances)
  • Professional advisers (e.g., surveyors, builders, solicitors)

The parties do not need to be liable under the same cause of action.
For example:

  • One party may be liable in negligence,
  • Another in contract,
  • Yet both caused the same loss.

Limitation Period (How Long You Have to Bring a Claim)

Under Section 10 of the Limitation Act 1980, a contribution claim must be brought within 2 years from the date on which the right to claim contribution arises.

This is usually:

  • The date the claimant pays damages, settles the claim, or
  • The date a judgment is entered against them.

This limitation period is strict. Missing the two-year deadline may mean the right to claim contribution is lost entirely.

How the Court Decides the Amount of Contribution

The court will assess what is “just and equitable”, considering:

  • The level of blameworthiness of each party
  • The extent to which each party’s actions caused the damage
  • Terms of any contract between the parties
  • Insurance arrangements

The contribution may range from 0% to 100% depending on responsibility.

Example Case

Royal Brompton Hospital NHS Trust v Hammond (2002)

This case clarified that a contribution claim can be pursued even where the parties have different duties or bases of liability, provided both are responsible for the same damage.

In that case:

  • A contractor and an architect were both found responsible for construction defects.
  • Although their obligations were different (one contractual, one under a duty of care),
  • The damage was the same.
    → A contribution claim was justified.

This principle is still widely applied today.

Received a Contribution Claim Letter? Here’s What It Means

If you have received a letter demanding contribution this indicates:

  1. Someone has already paid (or expects to pay) damages.
  2. They believe you contributed to the loss.
  3. They want you to pay part of those damages.

You should not ignore this.

Failure to respond could lead to:

  • Court proceedings
  • Cost penalties
  • Default judgment

Often, these claims can be defended or significantly reduced depending on:

  • Evidence
  • Contractual wording
  • Insurance coverage
  • Causation
  • Whether you were actually responsible for “the same damage”

Villars Legal can assess this for you.

How Villars Legal Can Help

At Villars Legal, we regularly advise clients on:

  • Responding to contribution claim letters
  • Assessing legal and financial exposure
  • Negotiating reductions or withdrawals of claims
  • Defending court proceedings
  • Reviewing contractual indemnity clauses
  • Liability disputes between contractors, landlords, tenants, and professionals

 Book an Initial Consultation

If you have received a contribution claim or need advice on potential liability, you can book a consultation directly below:

 Book Online:
https://calendly.com/villarslegal-info/60min

Our consultation fee is displayed upon booking.

If you have received a Civil Liability Contribution Act letter, do not delay. Early advice can prevent avoidable costs, protect your position, and help you respond strategically.

📧 Contact us today: info@villarslegal.co.uk
🌐 Visit: https://www.villarslegal.co.uk
📞 Call: 020 8106 1209/ 07782354715

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