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ARTICLE · 15 DECEMBER 2017

Limitation Periods: Have You Waited Too Long?

Blaney McMurtry LLP
Blaney McMurtry LLP
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Those unfamiliar with civil litigation may not be aware of the requirement to commence litigation within two years of discovering a claim.

CanadaLitigation, Mediation & Arbitration
Varoujan Arman
Varoujan Arman
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Background

Those unfamiliar with civil litigation may not be aware of the requirement to commence litigation within two years of discovering a claim. In Ontario, this requirement is imposed through provincial legislation called the Limitations Act, 2002. To give a simple example, if a loan becomes due on January 1, 2017 and the borrower defaults, then the lender has until January 1, 2019 to commence a lawsuit. While the lender could still issue a claim with the court after January 1, 2019, the defendant would likely have a full defence available on the basis that the limitation period expired. The likely result would be a prompt and successful motion dismissing the claim together with a costs award against the plaintiff.

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