With effect from 1 September 1996, claims arising from a failure to observe the specific time limits listed below will attract a penalty deductible, ie an additional 50% of the deductible.The purpose of introducing this penalty is to encourage the implementation of effective systems within firms, which can help to reduce the risk of a large number of claims.

The penalty deductibles will not apply retrospectively.

They will be imposed only on those claims where the negligent act or omission is on or after 1 September 1996.There is now an opportunity for all firms to reflect on the systems currently in operation and to make any necessary changes which will assist in the observance of time-limits generally.

The following is a simple checklist:Assess current systemsMissing time limits is not just a matter of bad luck.

If an individual fee earner operates his or her own system properly and that system is backed up in an effective way, claims can be avoided.

Ask yourself the following questions:-- does every fee earner in my firm have a system for observing time-limits that works for him or her?-- is that system capable of working if the individual fee earner is absent from the office?If you cannot be confident in answering yes to both questions, think about how your current systems could be improved.Research time limitsIdentify relevant time-limits (applicable from the beginning to the end of the case or transaction) at the outset of the matter and make a note in a prominent place on the file.

Add to the note at any stage during the course of the case when further time-limits arise or become known.Record time limitsIn the individual fee earner's diary:-- enter all important dates and deadlines, allowing a countdown period;-- ensure that the entries can be understood by anyone who might need to use the diary in the fee earner's absence, ie make it legible;-- enter the file reference and client's name, note the specific action required to be taken;-- advise the client of important time limits.It is essential that the individual fee earner's diary should be backed up by a system which will help to remind not only the fee earner of important dates but also anyone else who might be required to take action in the absence of the fee earner.

Good back-up systems will often involve someone else in the process who then acts to remind the individual fee earner.

Examples of back-up systems are:-- a duplicate diary kept by a secretary or colleague;-- a central office/departmental diary or wall-chart kept by administrative staff;-- a computerised diary capable of producing a list of the priority dates (those which it is essential to observe);-- entering important dates on file covers using coloured labels-- maintaining a court diary for recording all court appointments;-- attaching a case plan to the inside cover of the file with relevant dates inserted as they become known.React to remindersNo reminder systems can be effective if fee earners do not react to them promptly.

Any procedure which provides encouragement to react immediately will benefit the fee earner and the firm.Review time limit systemsIt is essential that the system you adopt works well for your firm and the departments within it.

This can only be achieved if all staff -- fee earners and support staff -- are trained in the use of the system and see evidence of the firm's commitment to its implementation.

If a system is found not to work, encourage suggestions for improvement and implement them.The penalty deductible will apply in respect of claims arising from a failure to:-- commence proceedings within the time permitted under s.2, 5 or 11 of the Limitation Act 1980;-- commence proceedings within the time permitted under the Employment Protection (Consolidation) Act 1978 for the commencement of unfair dismissal proceedings;-- serve High Court proceedings within the time permitted under ord 6, r.8 of the Rules of the Supreme Court 1965 (or county court proceedings within the time permitted under ord 7, r.20 of the County Court Rules 1981);-- request the proper officer to fix a day for a hearing as required under ord 17, r.11 of the County Court Rules 1981;-- serve a notice or issue an application within the periods permitted under pt II of the Landlord and Tenant Act 1954;-- register at Companies House a charge against the assets of a company within the time permitted by s.395 of the Companies Act 1985;-- apply to register a protected transaction within the priority period afforded under the Land Registration (Official Searches) Rules 1993;-- execute a Deed of Variation within the two years permitted under s.142(1) of the Inheritance Tax Act 1984 and/or to give written notice to the Inland Revenue within the six months permitted under s.142(2).