What Happens If You’ve Delayed In Bringing a Court Claim? Here’s a Case That You Should Know About

Generally speaking, a party that wishes to commence a court action must do so within two years of when he/she first became aware (or ought to have become aware) of the existence of the claim. We call this the “limitation period” and there are a number of factors that go into assessing when the limitation period starts to run. In the case of Presley v Van Dusen, 2019 ONCA 66 [Presley], the Ontario Court of Appeal recently confirmed that in order for the limitation period to begin to run, a key question that must also be asked in the assessment is: Whether or not a legal proceeding is an appropriate means to seek to remedy the injury, loss, or damage?  Continue reading “What Happens If You’ve Delayed In Bringing a Court Claim? Here’s a Case That You Should Know About”

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Limitation Limbo: All Condominium Corporations Should Be Mindful of the Upcoming Ultimate Limitation Period!

To bring any type of legal action in Ontario, including claims made by condominium corporations, there are generally two relevant dates litigants should be aware of:

• the basic limitation period – two years from the date that you knew, or ought to have known, about the claim; and

• the ultimate limitation period – 15 years from the date on which the act or omission took place, regardless of whether the elements of the claim become known, or are discoverable, during that 15 year period.

Continue reading “Limitation Limbo: All Condominium Corporations Should Be Mindful of the Upcoming Ultimate Limitation Period!”

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Discovery of Claims Requires Asking the Right Questions

The Ontario Superior Court recently confirmed the importance of the principle of “discoverability” when considering claims against potential defendants.

Generally speaking in Ontario, a court claim must be started within 2 years of the date that the claimant knew or ought to have known they had a claim. Whether or not a claimant ought to know about the claim requires that the claimant become aware, or “discover”, that the claim exists. Only when the claimant actually discovers the claim, does the 2-year limitation period begin.

The case of Carone v. Peel Condominium Corp. No. 766 dealt with the principle of discoverability in the context of a claim for damages related to a slip-and-fall accident that occurred as a result of the defendant’s alleged failure to properly clear snow and ice. The plaintiff filed her claim against the defendant condominium corporation within the 2-year limitation period. However, when she filed the claim, she was not aware that at the relevant time the condominium had a contract for snow removal with a third-party contractor. She discovered this fact more than 2 years after the accident, and then took steps to advance her claim against the contractor. The contractor resisted the claim on the basis that the plaintiff ought to have discovered her claim against the contractor sooner. They took the position that the plaintiff failed to make reasonable inquiries to confirm the existence and identity of the contractor involved in snow and ice removal. Had she done so sooner, she could have discovered the identity of the contractor more than 2 years before the claim against the contractor was advanced.

The Court agreed that where a party “fails to make inquiries about possible claims… by not asking any questions, that party might find herself outside a limitation period.” However, the Court ultimately found in this case that the plaintiff did take reasonable steps to determine whether or not a contractor was involved in snow maintenance on the property, and despite the fact that the defendant condominium corporation could have disclosed the identity of the contractor sooner, it failed to do so. The Court found that the plaintiff “should not be deprived of the opportunity to advance a claim” on the basis that the contractor’s identity was not disclosed to the plaintiff by the other defendants.

This case serves as a reminder of the importance of asking reasonable questions regarding the involvement of all possible parties, whenever someone considers making a claim. This of course is also true for a condominium corporation that is considering a claim. While you may not get the answers you are looking for, by asking questions you will ultimately be able to avoid any argument that you could have discovered your claim (and the responsible parties) sooner.

For more information about court claims and limitation periods, contact us.

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Insurance Claims – Watch out for the Limitation Period!

Our readers may know that the limitation period for most types of claims in Ontario is two years. This means that the claim must be started (by court process) within two years from when the claimant discovers or ought to have discovered the basis for the claim. Otherwise, the right to assert the claim is likely lost.

However, for many insurance claims, the limitation period maybe shorter.

Condominium corporations are sometimes required to consider claims against their insurers. For instance:

(a)    When damage is caused to the common elements or standard units, repairs may be covered by the corporation’s property insurance.

(b)   When a claim is made against the condominium corporation and/or directors, the condominium’s insurer may have a duty to defend the claim (and may have a duty to pay any judgment).

In such cases, condominium corporations must be careful to preserve their claims. In particular:

  1. As a first step, the insurer must be given prompt notice of any such claim or potential claim against the insurer.
  2. In addition, if there is any doubt or possible doubt about the insurer’s acceptance of the claim, the condominium corporation must start the claim against the insurer (by court process) within the applicable limitation period. And, for purposes of this second step, here’s the key point: The limitation period for such insurance claims may be shorter than the typical two-year limitation period.

The Courts have said that the limitation period for insurance claims can be determined in the insurance contract/policy. For example, many insurance policies contain one-year limitation periods (from the date of a loss) for claims against the insurer. Some policies contain one-year limitation periods under both the property insurance coverage and the liability insurance coverage.

The bottom line is as follows: Whenever you are confronted with a claim or potential claim against your insurer, be sure to consider the two steps noted above, and also be sure to check the limitation period in the policy. Again, if a claim against the insurer is necessary, it must be started by court process within the limitation period noted in the policy.

To read more about condominium insurance, check out our previous blog post.

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