Time-Bar For Claims In Unjust Enrichment - When Does The Cause Of Action Accrue?

• Published date: 27 February 2023
• Law Firm: Quadrant Chambers
• Author: Mr Benjamin Coffer

OVERVIEW

When does time start to run for limitation purposes in a claim for the recovery of sums transferred on a basis that subsequently fails?

The Commercial Court has decided that it is not necessary for the underlying contract to be terminated before any claim in unjust enrichment can be brought and that the cause of action accrues - and time starts to run - when the state of affairs contemplated as the basis or reason for the payments fails to materialise.

In an interesting judgment handed down on Tuesday, 14th February 2023 (Anron Bunkering DMCC v Glencore Energy UK Ltd [2023] EWHC 295 (Comm), Simon Colton KC (sitting as a Judge of the High Court) summarily dismissed a claim for restitution of unjust enrichment on the basis that it was time-barred.

Benjamin Coffer appeared for the successful Defendant, instructed by Eleanor Coates, Anna Fomina and Iman Anjarwalla at Clyde & Co.

The underlying claim arose out of two contracts for the sale of...