Amendments To The Drop Dead Rule In Alberta

Introduction

On June 16, 2016, revisions were made to Rule 4.33 of the Alberta Rules of Court, commonly known as the "Drop Dead Rule". The revised Rule 4.33 now provides for a "suspension period", and parties may enter into an agreement, or may apply to the Court for an Order, which specifies that a certain period of time shall not be included in the computing of the three year time period under the Rule.

While it remains to be seen how the revised Rule will be interpreted and applied, it contains important changes which may have implications to parties who currently have standstill or tolling agreements in place and will impact how such agreements must be made in the future.