CMB MAGAZINE cmba-achc.ca summer 2018 | 41
the facts constituting a claim become known to
a plaintiff. Changing limitation periods from
between two and 10 years to just one two-year
period represents a dramatic shi in our civil
justice system.
In addition, there is another critical change
in the new legislation. Under the former Act,
the running of time for a limitation period
could be postponed or interrupted with the
occurrence of a number of different events –
culminating in an ultimate limitation period
of 30 years. No claim can ever be brought for
any reason aer an ultimate limitation period
has expired. is 30-year ultimate limitation
period has now been cut in half to just 15
years! e reduction in the ultimate limitation
period will clearly create more certainty in the
construction industry and other businesses
with civil claims exposure.
here are some examples of how the new
limitation period provisions work.
the two-year rule: A mortgage broker
provides negligent advice to a client in
September of 2013 which gives rise to a cause
of action, but the client does not act upon the
advice until September of 2015. e client
experiences a loss one year later in September
of 2016, but only becomes aware of the loss in
September of 2017 aer reviewing mortgage
files with a new mortgage broker. Can the
client sue the original mortgage broker for
negligence? e answer is yes, the client can
bring an action against the mortgage broker
up until September of 2019, as that is two years
from the date in which the client discovered
the damages from the potentially negligent
advice. Any claim aer September of 2019
would then be statute-barred.
the Ultimate limitation period: A
condominium builder fails to put rebar in
