Discoverability Provisions Extend Limitation Periods In Professional Liability Actions

Background

In the Province of New Brunswick v. Grant Thornton 2020 NBCA 18, the New Brunswick Court of Appeal concluded that a discovery-based limitation period prescribed by a limitations statute does not begin to run when a claimant knows, or reasonably ought to know, that he or she has a potential claim.  Instead, the Court held that the limitation period does not begin to run until the claimant knows, or reasonably ought to know, that the defendant breached the standard of care. 

The Supreme Court of Canada has granted leave to appeal and it will be seeking to balance the interests of plaintiffs in not being barred before they know they have a cause of action and the interests of defendants in eliminating stale claims to prevent the abuse and injustice that can result from litigation commenced long after relevant events have occurred and to bring certainty, stability and finality to human and commercial affairs.¹