Is There a Limitation Period When Filing a Lawsuit?

When pursuing legal action in Ontario, time is of the essence. Section 4 of the Ontario Limitations Act, 2002 establishes a general two-year limitation period to initiate a claim. This two-year clock starts ticking from the moment the claim is discovered. While there are exceptions to this rule, this blog will focus on the general principles that govern this limitation period.

What Is a "Claim" Under the Act?

To understand the limitations period, we must first define a "claim." Section 1 of the Act defines a claim as a "claim to remedy an injury, loss or damage that occurred as a result of an act or omission." This essentially means that a claim arises when one party seeks legal remedies for harm caused by another party's actions—or lack thereof.

In Kaynes v. BP p.l.c., the Ontario Court of Appeal clarified that a claim is pursued through court proceedings to obtain a remedy for a loss caused by someone else. This makes the two-year limitation period a critical factor in determining when a person can bring their grievance to court.

When Does the Limitation Period Begin?

Section 5 of the Act outlines the concept of discoverability, dictating when the two-year countdown begins. A claim is considered discovered when the person with the claim, or a reasonable person in the same circumstances, first knew—or ought to have known—the following four critical elements:

1. The injury, loss, or damage occurred.
   This means that there was a tangible harm or negative impact suffered.
2. The injury, loss, or damage was caused by an act or omission.
   The harm must be traceable to a specific act or failure to act.
3. The act or omission was that of the person the claim is made against.
   The person bringing the claim must identify the responsible party.
4. A legal proceeding would be an appropriate remedy.
   The claimant must recognize that going to court is a viable way to address the injury, loss, or damage.

The two-year limitation period begins on the earlier of the date the claim was actually discovered or the date a reasonable person would have discovered it.

Reasonableness: A Key Factor in Discoverability

An important principle of the Limitations Act, 2002 is that the limitation period is not entirely subjective. The law imposes an objective test: if a reasonable person in the claimant's position would have discovered the claim earlier, the limitation clock starts at that earlier date. This prevents individuals from extending the two-year window based solely on their personal timeline of discovery.

For example:

• If an individual discovers the harm on their own but a reasonable person would have noticed it earlier, the clock starts ticking from the earlier date.
• Conversely, if the claimant’s discovery aligns with when a reasonable person would have identified the issue, the two-year limitation period starts from that date.

This framework ensures fairness while encouraging diligence in recognizing and acting on legal claims.

Why the Two-Year Limitation Period Matters

Understanding the two-year limitation period is crucial for both plaintiffs (those planning to sue) and defendants (those being sued). For plaintiffs, failure to act within the limitation period can result in their case being barred, regardless of its merits. For defendants, the limitation period can serve as a powerful defense to prevent stale claims from proceeding to court.

As a result:

• Individuals planning to sue should avoid delays and act promptly once they discover a claim.
• Defendants facing legal action should carefully assess whether the claim was initiated within the limitation period.

Looking Ahead: The Nuances of Discoverability

While the two-year limitation period is a general rule, the principle of discoverability introduces complexity into its application. In certain situations, discoverability can extend the limitation period beyond two years from the date of injury or loss. For example, cases involving latent injuries or delayed awareness of harm often hinge on when the claim was, or should have been, discovered.

Our next blog in this series will delve deeper into the concept of discoverability and explore the factors courts consider when determining the discovery date of a claim. Stay tuned as we unpack this nuanced topic and provide further insights into navigating Ontario’s limitations framework.

Final Thoughts: Acting Within the Limitations Period

The Limitations Act, 2002 underscores the importance of time constraints in Ontario’s legal system. Whether you’re a potential plaintiff or a defendant, understanding the limitation period is essential to protecting your legal rights. Acting promptly and seeking professional legal advice can make all the difference when navigating this complex area of law.