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Dáil Éireann debate -
Thursday, 29 Nov 1990

Vol. 403 No. 3

Statute of Limitations (Amendment) Bill, 1990 [ Seanad: ] Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

I would like to repeat a question to the Minister in relation to injury caused by the inhaling of dust and other obnoxious vapours. I pointed out that in many cases trade unions, for example, through the various agencies available to them, have great difficulty in proving that the injury was caused by dust. I pointed out that workers in these cases can be out of work consistently over a period of time, and it is only after a very lengthy period that the cause of the illness or injury can be proved. Very often the unfortunate worker has to go back to the workplace where the injury or illness is reactivated. For example, when a person inhales flour it may not show up when the person concerned is out of work but only when they are in the working environment. I would ask the Minister if he is satisfied that that matter is adequately covered in the legislation.

I would like to refer briefly to a matter that arises quite frequently. In many cases workers are not covered by insurance due to the fact that employers do not take out the necessary cover. I am particularly concerned about this matter. In the case of foreclosure, for example, it can take quite a long time for the affairs of the company to be dealt with through receivership or liquidation. Very often the insurance cover for the workers is not adequate and that only comes to light in the event of a closure. I would like to have seen a provision in the Bill to deal with this. Perhaps the Minister would like to comment on it.

I am also concerned with cases where workers are injured in the workplace and the employer leaves the jurisdication. Under existing legislation, unless the claim is lodged to the insurance company prior to the employer leaving the jurisdiction, it is virtually impossible to do anything about it. On the other side of that case, perhaps the Minister has plans within his Department to deal with the length of time it takes to process claims, even asuming that they are lodged within the specified period laid down in the Bill. We all know that it can take from four to seven years to process a claim through the courts. In these instances it may be that the injured worker is suffering from a disability — perhaps permanently confined to bed — and the case can drag on for years. There is no provision in legislation which would encourage the legal profession or the insurance companies to process such claims within a reasonable time. I would be particularly interested to hear the Minister's ideas in that regard.

This legislation is probably unique in so far as it will have retrospective effect. Would the Minister indicate his intention regarding a time schedule. Many people who may have been outside the statutory time limit for making claims will be very interested to know whether they will be able to make a retrospective claim under his legislation. I would like to hear the Minister's thinking on that. Obviously there is some reason for this most unusual provision.

In regard to section 6 of the Bill, I would like to know what the position is in relation to a person who has made a claim and then dies. I assume that the relatives of the deceased person would then pursue the claim. I would like to know who would have the right to pursue such a claim. For example, if a second parent dies, would the children of the deceased person have the right to pursue the claim individually or collectively? I do not think there is much more to be said about this legislation. I welcome it because it proposes to correct an anomaly. It will also be welcomed by the trade union movement, the Irish Congress of Trade Unions and workers generally. I congratulate the Minister in taking this initiative.

I congratulate the Minister on bringing forward this very important and progressive legislation which remedies a long-standing injustice in our legal system. I am particularly pleased the Minister has seen fit to follow the recommendations of the Law Reform Commission, thereby overcoming the problem highlighted by the Supreme Court in 1987 and 1989. In the case of Hegarty V. O'Loughlin and Edwards the court removed any doubts in regard to the provisions of the Statute of Limitations Act, 1957, accommodating those cases where either the injury or the cause of action was not discovered within the three year limit, as was provided for in that Act.

Sections 2 and 3 of the Bill tackle the problem of extending the time to enable cases to be brought before the court. Sections 4, 5 and 6 deal with additional matters. Section 3 amends the 1957 Act by providing that the limitation period during which an action must be brought will run from the date of knowledge by the injured person or, where the injured person is not the claimant, his representative or dependant. Section 2 defines the date of knowledge of the facts. Sections 2 and 3 provide that in the case of a person who contracts a serious illness as a result of exposure to dangerous substances, where the effects of any such illness do not become apparent until after the three years form the date of exposure, a claim be be brought.

Under the 1957 Act the claim would have been barred by the time limit before the illness was apparent. The reform of these sections also saves the case of those who may know that they have contracted a serious illness but, because of the lack of scientific knowledge, cannot connect that illness to be the wrongful act of another person. The time limit for these people will only begin to run from the time that the scientific knowledge necessary to prove that the illness was caused by the wrongful act of another becomes available.

It is apparent from this Bill that the range of legal cases affected by it will be relatively small as a proportion of total claims for personal injuries. Any fears of a major increase in insurance costs are unfounded. The kind of cases that have been time-barred under the 1957 Act — and which this Bill seeks to redress — have in the main been confined to latent diseases contracted by workers as a result of exposure to dangerous substances while at work. Clearly, the Bill will affect their situation. It is possible to imagine that the occurrence of major disasters, such as radioactive leaks from a nuclear installation, would give rise to claims well into the future. However, under the 1957 Act, they would become time-barred but the likelihood of a substantial number of claims arising under this heading must be regarded as remote.

The inclusion of the identity of the defendant as part of the relevant knowledge clearly implies that in hit and run accidents the time limit will not apply until the identity of the offending driver is known. This provision in the Bill seems to be the only one which would affect road traffic cases, hence motor insurance. The impact of any additional claims because of this on the cost of motor insurance will be negligible. The Minister for Industry and Commerce should be wary of extravagant claims about the cost effect of this provision.

I compliment the Minister on his speedy response to the situation which was only finally clarified by the Supreme Court in 1989. I have no doubt that this Bill is an important milestone in the ongoing process of legal reform.

I should like to conclude the Second Stage debate on the Bill by thanking the Deputies who contributed for their comments. Some points are worthy of specific attention and I will refer to them briefly. I will deal with other points on Committee Stage.

Deputy Bell is present and I congratulate him on his appointment as spokesperson on Justice. I wish him a long period in that position and I have no doubt that we will make progress together in the House on behalf of the people.

Deputy Flanagan referred to the Private Members' Bill introduced on this subject on 3 March 1988 by the former Deputy George Birmingham. The previous Government decided to support this Bill in principle subject to certain amendments, mainly of a technical or drafting nature. These changes are readily apparent to anyone looking at the text of both Bills.

The Private Members' Bill lapsed on the change of Government in June 1989 without ever having been debated. I do not know why the Bill was not reintroduced by the party oposite and this, of course, answers Deputy McCartan's criticism of the apparent delay in bringing the Commission's proposals before the Oireachtas in this matter.

Generally speaking, however, with regard to Deputy McCartan's point about the implementation of Law Reform Commission reports, the Commission would be the first to concede that their reports are not normally expressed in a form which permits immediate implementation of their recommendations, even assuming that their recommendations accorded with the views of the Government, which is not always the case. In some cases, extensive work is still required in my Department and in the parliamentary draftsman's office. Furthermore, that work can only be done in the context of the resources available to me and to the Attorney General and, most importantly, questions of settling priorities between different items of legislation are inevitable.

Deputy Flanagan referred to the absence of a definition of "significant injury". This is quite deliberate and in accordance with the recommendation of the Law Reform Commission. The publication, entitled The Supreme Court Practice, which is the authoritative guide to practice and procedure in English law, comments at paragraph 6152 of the 1988 edition that “significant injury” is defined in a somewhat curious way in the English legislation. It asks: “On this basis, that liability is not in dispute and the money is there for the asking, what injury would not be sufficiently serious to make a claim for compensation worthwhile?”.

The Law Reform Commission at page 17 of their report, noted this criticism and pointed out that the likely effect of such a provision would be that time would start to run against a person who became aware of an injury, however trivial; thus a person who received an apparently minor injury and let matters drift because of the minor nature could, if the injury turned out to have serious consequences after a period of years, find himself held to a date of knowledge considerably earlier than that on which he realised that the injury was significant in the normal sense of the word.

If the law contained a definition of "significant injury" on the lines of the English provision, then the injuries in a couple of examples which I can give would be "significant" and the injured person would be fixed with a date of knowledge contemporaneous with the accrual of the cause of action. This would seriously diminish the effectiveness of the Bill.

Deputy Flanagan, Deputy Cullimore and others referred to the problem of hit and run accidents where the identity of the defendant is not known. He should check the position in this regard with the Minister for the Environment as it does not arise in the context of this Bill. As I understand the position, changes were brought about in 1988 in these cases as a result of the implementation of an EC directive and that the MIBI scheme now covers the question of compensation in these cases. The new scheme replaces the earlier 1964 agreement in the case of road accidents occurring on or after 31 December 1988.

Deputy Flanagan and Deputy Cullimore also referred to the insurance implications of the proposals in the Bill. I acknowledge that, to some extent, we are stepping into the dark here. The high cost of insurance in the categories of motor, medical, public liability and employers' liability is always a worry. The Minister for Industry and Commerce has primary responsibility in that regard and Deputies will be well aware that measures to tackle these costs are high on his list of priorities. It is also relevant that, when similar changes were introduced in the neighbouring jurisdiction, there was no significant rise in insurance costs so it does not automatically follow that costs here will rise inexorably as a result of this legislation. The Government took the decision to proceed with this Bill having considered all the circumstances in detail. The present law is patently unjust and the strongest hints have come from the highest court in the land that it is also unconstitutional. We must have a fairer system and it may be that we have to pay a price for that fairer system.

I do not want to let this opportunity pass without adverting to the recent judicial criticisms of the insurance industry in the matter of the high cost of claims. When two eminent judges of the High Court come out within a month suggesting that the insurance industry should look to see if their own competence and procedures need examination, then it is time to take notice and I hope they will.

The position regarding cases on which a final determination has been made by a court is that this Bill will not allow them to be reopened as the doctrine of res judicata applies. To provide otherwise would, I am sure Deputies agree, lead to total uncertainty in that a court decision could no longer be held to mean what it said. For those cases where proceedings have not yet commenced, or where proceedings have commenced but have not yet been finally determined on the coming into effect of the new law, these provisions can be invoked.

Deputy Bell raised a point in relation to this and I want to assure him that where a case has not been decided on, the claim can come forward at this stage, not just from the passing of the Act, but prior to it. If somebody has been injured when the prior time limit was there under the new Bill they will be able to claim, which is a significant step forward.

As to the action on the EC directive in regard to products' liability referred to by Deputy McCartan, I wish to inform him that this does not come under my jurisdiction. It is the responsibility of the Minister for Industry and Commerce. The question of the introduction of a scheme of "no fault" compensation raises complex issues far outside the scope of debate on this Bill. It may well be a better way of dealing with the matter but it would require very detailed examination and consideration before we could decide to replace our present system of compensation for personal injuries.

The type of disease or industrial injury which Deputy Bell raised is exactly the sort of thing which this Bill is designed to encompass. The point the Deputy raises about insurance cover in the event of the employer's liqidation or related difficulties is outside the scope of this Bill. The point about long delays occurring in processing claims, not just personal injury claims, is of great interest and concern to me and I assure the Deputy that I am as anxious as he to ensure that justice is not only done, but is speedily done. With this in mind, I made statements only last week in relation to initiatives in the area of legal reform. I also have under active consideration specific proposals in relation to improvements in court systems and procedures, which will meet some of the genuine and legitimate concerns expressed by Deputy Bell.

I thank all Members who spoke for their warm welcome for this measure. If there are other points to be covered we can debate them at length on Committee Stage.

Before I put the question I understand that Deputy Flanagan has a brief question.

I thank the Minister for referring in his response to some of the comments I made. Will he perhaps address the difficult problem I raised regarding property? This legislation is redressing an injustice in relation to personal injury but are we compounding a further injustice by not redressing actions against the property, having regard to the earlier comments of the Law Reform Commission in 1982 with regard to a defective premises, a family home, or, in some cases, the fact that the sole assets of an individual could be wiped out due to a latent defect that might only be noticed some years after?

I referred to that in my response. The problem of defective premises is covered by a Law Reform Commission report which is within the area of responsibility of the Minister for the Environment. I do not have any legislative responsibility for the matter covered by that report. The Deputy is correct in surmising that a claim for personal injuries sustained as a result of a building defect would come within the compass of this Bill.

Question put and agreed to.

When is it proposed to take Committee Stage?

It is proposed to take Committee Stage next Tuesday with the agreement of the Whips.

Committee Stage ordered for Tuesday, 4 December 1990.
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