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:
- Someone has already paid (or expects to pay) damages.
- They believe you contributed to the loss.
- 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