Supreme Court Of Canada's Decision Warns Plaintiffs: Act On Potential Claims

A plaintiff is typically required to commence an action within two years of when they 'knew or ought to have known' they had a claim against the other party; failure to do so may result in their claim being dismissed under limitations legislation. In Grant Thornton LLP v New Brunswick,¹* the Supreme Court of Canada (SCC) clarified when a claim is considered to have been 'discovered' in this context.

What you need to know

• The unanimous SCC decision concluded that a claim is discovered when a plaintiff has knowledge, actual or constructive, of material facts that support a plausible inference of the defendant's liability.
• Constructive knowledge may be established when the plaintiff "ought to have discovered" material facts "by exercising reasonable diligence" and a plausible inference is one which gives rise to a "permissible fact inference" of liability.