Gallagher -v- ACC Bank Plc Statute Of Limitations

Executive Summary

The Supreme Court's unanimous ruling in Gallagher v ACC Bank [2012] IESC 35 delivered by Fennelly J (the "Gallagher Case") has to some extent clarified the rules governing the time within which claimants must institute negligence proceedings in respect of financial loss. Broadly speaking, the claim must be brought within 6 years of the date on which the alleged loss occurred. Time may not begin to run however where there is only a "mere possibility" of loss in a case until such time as that loss materialises.

In the Gallagher Case, the Supreme Court held there was an "immediate loss" upon entering the particular investment which was alleged to be inappropriate from the outset and consequently time began to run from that point. However, it acknowledged that this would not necessarily be the case in respect of different types of investment product where mismanagement or deviation from investment strategies is alleged. In such cases, the cause of