When Does The Limitations Period For The Payment Of An Invoice Start Running?

In a recent decision concerning invoices issued under several petroleum facilities agreements, Harvest Operations Corp. v. Obsidian Energy Ltd.,¹ the Alberta Court of King's Bench held that the limitations period starts running from the reasonable date by which the invoices ought to have been issued, not from a shorter contractual deadline for issuance.

The Court also held that, if it was wrong in its determination of when the limitations period began running, there were admissible statements from the defendants acknowledging their debt to the plaintiff which would have served to extend the limitations period.

Harvest Operations highlights the importance that industry practice can play in the courts assessment of when limitation periods start to run.