SCC Clarifies Statutory Limitation Period & Degree Of Knowledge Required For Discoverability

Last week, the Supreme Court of Canada released its decision in Grant Thornton LLP v. New Brunswick.¹ The judgment provides important guidance on interpreting and applying the basic two-year limitation period contained in most provincial limitations statutes. Ultimately, the Court held that a claim is discovered when the 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.

Background: In 2008, the Atcon Group of Companies ("Atcon") sought loans from the Bank of Nova Scotia, but it needed loan guarantees from the Province of New Brunswick. The Province agreed to provide $50 million in loan guarantees, conditional upon Atcon undertaking an external review by an auditing firm. The parties agreed to use Atcon's auditor, Grant Thornton LLP.