Prescription and Limitation (Scotland) Act 1973

[F1 [F2 22A Ten years’prescription of obligations. S

(1) An obligation arising from liability under section 2 of the 1987 Act (to make reparation for damage caused wholly or partly by a defect in a product) shall be extinguished if a period of 10 years has expired from the relevant time, unless a relevant claim was made within that period and has not been finally disposed of, and no such obligation shall come into existence after the expiration of the said period.

(2) If, at the expiration of the period of 10 years mentioned in subsection (1) above, a relevant claim has been made but has not been finally disposed of, the obligation to which the claim relates shall be extinguished when the claim is finally disposed of.

(3) In this section—

a claim is finally disposed of when—

(a) a decision disposing of the claim has been made against which no appeal is competent;

(b) an appeal against such a decision is competent with leave, and the time limit for leave has expired and no application has been made or leave has been refused;

(c) leave to appeal against such a decision is granted or is not required, and no appeal is made within the time limit for appeal; or

(d) the claim is abandoned;

• “ relevant claim ” in relation to an obligation means a claim made by or on behalf of the creditor for implement or part implement of the obligation, being a claim made—

(a) in appropriate proceedings within the meaning of section 4(2) of this Act; or

(b) by the presentation of, or the concurring in, a petition for sequestration or by the submission of a claim under section 22 or 48 of the Bankruptcy (Scotland) Act M1 1985; or

(c) by the presentation of, or the concurring in, a petition for the winding up of a company or by the submission of a claim in a liquidation in accordance with the rules made under section 411 of the Insolvency Act M2 1986;

• “ relevant time ” has the meaning given in section 4(2) of the 1987 Act.

(4) Where a relevant claim is made in an arbitration, [F3 the date when the arbitration begins (within the meaning of section 4(4) of this Act)] shall be taken for those purposes to be the date of the making of the claim.]

[F4 (5) The prescriptive period calculated in relation to a relevant cross-border dispute for the purposes of this section is extended where the last day of the period would, apart from this subsection, fall—

(a) in the eight weeks after the date that a mediation in relation to the dispute ends;

(b) on the date that a mediation in relation to the dispute ends, or

(c) after the date when all of the parties to the dispute agree to participate in a mediation in relation to the dispute but before the date that such mediation ends.

(6) Where subsection (5) applies, the prescriptive period is extended so that it expires on the date falling 8 weeks after the date on which the mediation ends.

(7) For the purposes of subsections (5) and (6), a mediation ends on the date that any of the following occurs—

(a) all of the parties reach an agreement in resolution of the dispute;

(b) all of the parties agree to end the mediation;

(c) a party withdraws from the mediation, which is the date on which—

(i) a party informs all of the other parties of that party’s withdrawal,

(ii) in the case of a mediation involving 2 parties, 14 days expire after a request made by one party to the other party seeking confirmation of whether the other party has withdrawn, if the other party does not respond in that period, or

(iii) in the case of a mediation involving more than 2 parties, a party informs all of the remaining parties that the party received no response in the 14 days after that party’s request to another party seeking confirmation of whether the other party had withdrawn; or

(d) a period of 14 days expires after the date on which the mediator’s tenure ends (whether by reason of death, resignation or otherwise), if a replacement mediator has not been appointed.

(8) In this section—

• “the Directive” means Directive 2008/52/ EC of the European Parliament and of the Council of 21 ^st May 2008 on certain aspects of mediation in civil and commercial matters;

• “mediation” and “mediator” have the meanings given by Article 3 of the Directive; and

• “relevant cross-border dispute” means a cross-border dispute within the meaning given by Article 2 of the Directive—

  (a)

  which is about an obligation to which a prescriptive period applies by virtue of this section, and

  (b)

  to which the Directive applies.]]

Textual Amendments

F1 Part 2A (ss. 22A–22D) inserted by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 6, 41(2), 47(1)(2), Sch. 1 para. 10

F2 Part IIA (ss. 22A–22D) inserted by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 6, 41(2), 47(1)(2), Sch. 1 para. 10

F3 Words in s. 22A(4) substituted (7.6.2010 for specified purposes) by Arbitration (Scotland) Act 2010 (asp 1), ss. 23(5), 35(2) (with ss. 30, 34, 36); S.S.I. 2010/195, art. 2 (with art. 3)

F4 Ss. 22A(5)-(8) inserted (with application in accordance with regs. 3, 4 of the amending S.I.) by Cross-Border Mediation (EU Directive) Regulations 2011 (S.I. 2011/1133), regs. 2, 17

Marginal Citations

M1 1985 c. 66 (66).

M2 1986 c. 45 (66).