Limitation Periods: Avoiding Hitting The Reset Button In Tuck v. Supreme Holdings

The Newfoundland and Labrador Court of Appeal recently affirmed the test for confirming a cause of action and thus resetting a limitation period under the NL Limitations Act. Insurers dealing with NL claims can be reassured that payments made in the course of investigating claims, such as payments for medical charts and reports, won't be considered "a payment in respect of that cause of action", and won't typically confirm a cause of action and thus reset a limitation period. However, insurers should be mindful that payments for lost wages and/or allied health costs might be treated differently. To minimize the ability of a party to later argue that an insurer reset her limitation period, any such payments made before a Statement of Claim is issued should be on a "without prejudice" basis. They also should be accompanied by a statement to the effect that they should not be construed as confirming a Plaintiff's cause of action or waiving any limitation period.