Update on COVID-19 Ontario Limitation Periods

Normally, the basic limitation period requires plaintiffs to bring claims within two years from the date that their claim was discovered. This is presumed to be the day on which the injury occurred.

If a plaintiff does not bring their claim within this two year period, they will be permanently barred from doing so.

This limitation period can be extended in some circumstances, such as when the defendant is a minor or when the plaintiff is unable to bring their claim due to mental incapacity.

The Covid-19 pandemic has created unique circumstances that have impacted the ability of many people to bring their claims within the normal two-year limitation period. As a result, on March 20, 2020, the Ontario government passed legislation that temporarily extended all limitation periods by six months.

This extension applied to any limitation period that was set to expire between March 16, 2020 and September 13, 2020. The extension also applied to any limitation period that had already expired on or after March 16, 2020, but had not yet been discovered by the plaintiff.

The legislation was passed in response to the Covid-19 pandemic and the unique circumstances that it has created. The goal of the legislation is to ensure that people are able to bring their claims within a reasonable period of time, despite the pandemic.

The legislation is set to expire on September 13, 2020, unless it is extended by the Ontario government. So far, there has been no indication that the government plans to extend the legislation beyond that date.

If you have a claim that was impacted by the Covid-19 pandemic, it is important to be aware of the legislation and the deadline for bringing your claim. If you have any questions about the legislation or your particular situation, you should speak to a lawyer as soon as possible.

The decision in McAuley v Canada Post Corporation explained that the proper interpretation of the regulation was that it extended any limitation period that otherwise would have run between March 16, 2020 and September 14, 2020, by 183 days (roughly six months). Those days do not get counted in the calculation of the limitation period.

The regulation applies to any action “based on” the defendant’s negligence, whether in contract or tort. The phrase “based on” is not defined in the legislation. However, it is generally interpreted broadly to include any claim where the defendant’s negligence is a factor, even if it is not the only factor.

For example, the regulation would apply to a claim for damages arising from a car accident that occurred on March 16, 2020. The regulation would also apply to a claim for breach of contract where the defendant’s negligence prevented the plaintiff from performing their obligations under the contract.

The regulation applies retroactively to any limitation period that expired on or after March 16, 2020. This means that if your claim was barred by the expiration of a limitation period on or after that date, you may now be able to bring your claim.

For example, let’s say you were in a car accident on March 16, 2020 and you did not discover the extent of your injuries until June. The normal two-year limitation period for personal injury claims would have expired on March 16, 2022. However, because of the legislation, you now have until September 13, 2022 to bring your claim.

The same is true if your claim expired before March 16, 2020 but you did not discover the facts giving rise to your claim until after that date. For example, let’s say you were in a car accident on March 1, 2020 but you did not discover the extent of your injuries until June. The normal two-year limitation period for personal injury claims would have expired on March 1, 2022. However, because the legislation is retroactive, you now have until September 13, 2022 to bring your claim.

The regulation does not apply to every type of claim. For example, it does not apply to claims for fraud or breach of fiduciary duty. It also does not apply to claims that are based on statutory provisions that have their own limitation periods, such as the Ontario Human Rights Code or the Canada Pension Plan.

Justin A. Villeneuve

Partner

Justin A. Villeneuve

Partner

Justin is a fully bilingual lawyer and services clients in both French and English. He represents parties in insurance disputes, personal injury claims, and employment disputes at various levels of courts in Ontario. He was given early acceptance to the Common Law program at the University of Ottawa Law School. He obtained his Juris Doctorate in 2014 and was admitted to the Law Society of Upper Canada in 2016 after articling at Weaver Simmons in Sudbury, Ontario.

Education

University of Ottawa – Common Law