Harrison v Gangell

In *Harrison v Gangell*, the Supreme Court of Western Australia was asked to determine whether a claim for damages for breach of contract was statute-barred. The plaintiff, Ms. Harrison, alleged that the defendant, Mr. Gangell, had breached a contract by failing to pay her a sum of money. Ms. Harrison commenced proceedings more than six years after the alleged breach occurred. Mr. Gangell argued that the claim was out of time under the *Limitation Act 1935* (WA).

The central legal issue before the Court was whether the six-year limitation period prescribed by section 4 of the *Limitation Act 1935* (WA) had expired before the commencement of proceedings. This required the Court to consider when the cause of action for breach of contract accrued, particularly in circumstances where the alleged breach involved a failure to pay a sum of money.

Judge Lucev reasoned that a cause of action for breach of contract accrues at the time of the breach itself, not at the time the plaintiff becomes aware of the breach or suffers damage. In this instance, the alleged breach was the failure to pay the sum of money. Therefore, the limitation period commenced from the date on which payment was due and not made. As Ms. Harrison commenced her proceedings more than six years after the date payment was due, her claim was found to be statute-barred.

The Court accordingly dismissed Ms. Harrison's claim.