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ARTICLE · 18 OCTOBER 2018

Can A Corrective Invoice Restart The Limitations Clock? ABQB Clarifies Limitations Law Relating To Stale Billings

Lawson Lundell LLP
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The mistake goes back a number of years.

CanadaLitigation, Mediation & Arbitration
Marika R. Strobl
Marika R. Strobl
Kyle Gardiner
Kyle Gardiner
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Here's a familiar scenario: A service provider that has been invoicing its client for several years at some point discovers that it has been calculating its services incorrectly and has missed billing for an item. The mistake goes back a number of years. The service provider then sends a "corrective invoice" containing the previously missed charges to the client, several years after the fact.

Can the service provider in this scenario expect to now be paid?

When does the limitation period start to run in relation to services for which no invoice was issued? Is it possible to effectively extend the limitation period by issuing a corrective invoice?

In the standard case, issuing a corrective invoice does not restart the clock

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