Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 02 AUGUST 2021

"Plausible Inference" Test Affirms That Plaintiffs Must Exercise Reasonable Diligence To Discover Claims

Gardiner Roberts LLP
Gardiner Roberts LLP
Contributor
Explore more from Gardiner Roberts LLP

Grant Thornton prepared an unqualified auditors' report in which it confirmed that it had reviewed the borrowers' financial statements in accordance with "Generally Accepted Auditing Standards."

CanadaLitigation, Mediation & Arbitration
James R.G. Cook
James R.G. Cook
Author LinkedIn connections

In Grant Thornton LLP v. New Brunswick, 2021 SCC 31 (CanLII), the Supreme Court of Canada determined that a claim by the Province of New Brunswick against Grant Thornton LLP was statute-barred as the government had discovered or ought to have discovered the material facts giving rise to the claim before the two-year limitation period expired. The decision affirmed two cornerstones of limitations periods:

  1. A limitation period is triggered when the plaintiff discovers or ought to have discovered through the exercise of reasonable diligence the material facts on which the claim is based (para. 40); and
  2. A claim is discovered when a plaintiff has knowledge, actual or constructive, of the material facts upon which a plausible inference of liability on the defendant's part can be drawn (para. 42).

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

BLG At The SCC – What’s Coming In The Supreme Court’s Fall 2026 Sitting Schedule

The Supreme Court of Canada held its second annual ceremony marking the opening of the judicial year at its temporary home in the West Memorial Building, with Chief Justice highlighting the Court's increased caseload and architectural features. What significant constitutional and legal challenges will the Court address in its fall 2026 session, including cases on firearm regulations, Crown immunity, and vicarious liability?
CanadaLitigation, Mediation & Arbitration
Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
Article

Ontario Court Bifurcates Class Action As Practical Approach To Onerous Discovery Demands

An Ontario court granted a motion to bifurcate liability and damages stages in a class action alleging $500 million in hidden fees, finding that extensive documentary production requests were disproportionate and not relevant to determining liability. The decision addresses proportionality concerns in class actions where defendants face onerous discovery demands spanning millions of transactions over a decade.
CanadaLitigation, Mediation & Arbitration
Bennett Jones LLP
Bennett Jones LLP
Article

The Coldcard Exploit: Why Victims May Have Two Routes To Recovery

A five-year-old firmware defect in Coldcard hardware wallets has enabled attackers to systematically drain an estimated $116 million in Bitcoin from over 5,200 victims since July 2026. This unprecedented exploit raises critical questions about manufacturer liability and creates two distinct legal pathways for recovery: blockchain tracing against the perpetrators and potential litigation against Canadian manufacturer Coinkite for product defects that undermined the fundamental security promise of devices mar
CanadaLitigation, Mediation & Arbitration
WeirFoulds LLP
WeirFoulds LLP
Article

Supreme Court Strikes Down Privative Clause: What Democracy Watch v Canada Means For Administrative Decision-makers

The Supreme Court of Canada has unanimously struck down a privative clause in the Conflict of Interest Act that attempted to bar judicial review of the Ethics Commissioner's decisions. The ruling establishes that the Constitution guarantees a minimum of legality review over all administrative decisions, with implications extending to labour relations, workers' compensation, and immigration legislation containing similar clauses.
CanadaLitigation, Mediation & Arbitration
Miller Thomson
Miller Thomson
Article

Plaintiffs Awarded A Total Of $800,000 In Damages For Defamation (Murdy v. Barrette)

A Canadian court awarded $800,000 in damages to a couple defamed by serious false allegations of sexual assault and criminal misconduct spread through social media. The case examines how factors like the severity of accusations, use of social media platforms, and a defendant's failure to mount a defense can dramatically escalate defamation damages beyond typical awards.
CanadaLitigation, Mediation & Arbitration
Gardiner Roberts LLP
Gardiner Roberts LLP
Article

Lights, Camera Infractions: A Review Of Ontario’s Automatic Enforcement System Offence Regime, The Risks To Commercial Vehicle Carriers And How Operators Can Protect Themselves

Ontario's automatic enforcement system (AES) offences, captured by red light cameras and similar technology, pose significant regulatory risks to commercial vehicle carriers. These offences carry the maximum 5 CVOR penalty points—equivalent to impaired driving or criminal negligence—yet are nearly impossible to defend or resolve through plea negotiations.
CanadaTransport
Gardiner Roberts LLP
Gardiner Roberts LLP
Article

Honest Belief No Defence To Defamatory Tweet About MP (Maggi v. Smith)

A recent Ontario court decision examines whether sincere belief in serious allegations can protect speakers from defamation liability when making accusations about public figures on social media. The case arose from posts alleging that a lawyer and Member of Parliament intimidated voters during a political nomination contest, raising important questions about the balance between free expression and reputation protection in political discourse.
CanadaLitigation, Mediation & Arbitration
Gardiner Roberts LLP
Gardiner Roberts LLP
Article

No Charter Right To Bicycle Lanes (Cycle Toronto v. Ontario (Attorney General))

The Ontario Court of Appeal has overturned a lower court ruling that found the provincial government's legislation to remove bicycle lanes from major Toronto streets unconstitutional. The decision addresses fundamental questions about the separation of powers between courts and legislatures, and whether the Canadian Charter of Rights and Freedoms creates positive obligations for governments to maintain infrastructure like bicycle lanes.
CanadaGovernment, Public Sector
Gardiner Roberts LLP
Gardiner Roberts LLP
Article

Lawyer Receives 6-Month Suspension For Misuse Of Artificial Intelligence (Law Society Of Ontario v. Lee)

The misuse of artificial intelligence by litigants and lawyers continues to be alarming. Although it is well-documented that generative artificial intelligence platforms have a tendency to produce inaccurate answers to legal questions, and, moreover, to produce output which references non-existing cases or which inaccurately portrays legal propositions in existing cases, these tools continue to be used recklessly.
CanadaCriminal Law
Gardiner Roberts LLP
Gardiner Roberts LLP