Limitation Period For Contractual Indemnity

​Do judges get tired of having to figure out what Ontario's Limitations Act 2002 actually means? As well they might; the legislation seems to have created more confusion than it has cleared up. One such area of confusion has been section 18, which governs claims for contribution and indemnity brought by one wrongdoer against another. Justice Sharpe of the Ontario Court of Appeal has shed some light on the provision in Canaccord Capital Corp v Roscoe, 2013 ONCA 378.

Roscoe was an investment adviser at Canaccord, and his contract of employment contained a provision under which he agreed to indemnify his employer for any claim against it that arose from Roscoe's acts or omissions. Two customers of the firm, Mr and Mrs Cavanagh, alleged that Roscoe and Canaccord had caused them losses for failing to assess their risk tolerance properly and for not being duly diligent in recommending investments. Canaccord funded the defence and did not claim against Roscoe under