ARTICLE · 24 SEPTEMBER 2025

When Deadlines Don't Match Reality: A Practical Application Of Contractual Limitation Periods

Alexander Holburn Beaudin + Lang LLP

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The Ontario Court of Appeal recently weighed in on the enforceability of contractual limitation periods in the context of multi-tier dispute resolution clauses.

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Emily Stock

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The Ontario Court of Appeal recently weighed in on the enforceability of contractual limitation periods in the context of multi-tier dispute resolution clauses. In Ontario (Transportation) v. J & P Leveque Bros. Haulage Ltd., 2025 ONCA 573, the Court considered how a contractual limitation period applies in relation to dispute resolution provisions which require several steps be completed within a certain timeframe.

The case offers important guidance for anyone drafting, administering, or litigating contracts that impose time limits on dispute resolution.

Background

The Ministry of Transportation of Ontario ("MTO") hired J & P Leveque Bros. Haulage Ltd. ("Leveque") to rehabilitate a section of Highway 60. Their contract included a multi-step dispute resolution process which provided the following summarized steps be completed:

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