Supreme Court Of Canada Confirms Restrictive Limitation Period For Securities Class Actions

In a decision with important ramifications for securities class actions across Canada, the Supreme Court of Canada has denied leave to appeal in Sharma v. Timminco, thereby upholding the Court of Appeal for Ontario's decision that the Ontario Securities Act requires a plaintiff to obtain leave to proceed with a statutory claim for misrepresentation in the secondary market under Part XXIII.1 within three years of the date that the alleged misrepresentation is made. If a plaintiff does not obtain leave and commence its action within three years, the claim will be statute-barred under section 138.14. The Supreme Court's decision comes on the heels of Green v. CIBC, in which Justice Strathy followed Timminco in dismissing the plaintiffs' claims on the basis that this limitation period had expired. (For a summary of Green v. CIBC please see our Osler Update of July 5, 2012.)