Change In Limitation Period Law Significant For Construction Projects

In Whitecourt Power Limited Partnership v Elliott Turbomachinery Canada Inc., 2015 ABCA 252 (Whitecourt Power), the Alberta Court of Appeal interpreted a recent amendment to the Limitations Act that changed the limitation period for a defendant seeking contribution from a third party. For a detailed account of this recent decision, see Breathing Room: The Alberta Court of Appeal Addresses the New Limitation Period for Third-Party Claims.

Prior to the amendment, which became law on December 14, 2014, the limitation period for a defendant seeking contribution from a third party where the third party may be liable to the plaintiff, started from the time that the plaintiff knew or ought to have known of its claim against that third party. The difficulty created with this approach is that the defendant was often at the mercy of the plaintiff's limitation period relative to the third party even though the defendant may not have yet been sued. This limited the defendant's