On Friday, March 20, 2020, the Government of Ontario issued
Ontario Regulation 73/20 further to the Emergency Management
and Civil Protection Act, R.S.O. 1990 c. E.9. The Regulation
suspended any limitation period under any statute, rule, by-law or
order of the Government of Ontario. In addition, the Regulation
suspended any provision of any statute which provides for any
period of time to take a step in a proceeding or intended
proceeding. The suspension of limitation periods and times to take
steps is “for the duration of the emergency” and
retroactive to March 6, 2020.
Undoubtedly, this measure is intended to protect the public from
the expiry of legal rights in circumstances where the COVID-19
pandemic prevents parties from taking timely steps normally
available to them to preserve those rights. However, this measure
may have an unintended consequence: namely, it may prevent the
release of holdback further to the Construction Act,
R.S.O. 1990, c. C-30 (the “Act”).