Sharma v. Timminco Limited, 2012 ONCA 107

In May of 2009, Sharma initiated a proposed class action alleging that misrepresentations were made that adversely affected the value of shares of Timminco Limited in the secondary market. Under the Ontario Securities Act, leave of the Court was required to assert such a claim, which needed to be commenced within three years of the date the alleged misrepresentation was made. The statement of claim indicated an intention to seek leave, but by the end of February 2011, the plaintiff had not yet brought a motion to do so.

Facing expiration of the Securities Act limitation period, the plaintiffs brought a motion for a declaration that section 28(1) of the Class Proceedings Act, which suspends limitation periods while a class proceeding is ongoing, suspended the limitation period in the Securities Act. The plaintiffs' motion was granted at first instance, and the defendants appealed.