[37] Bill 163 Original (PDF)
Bill 163
Bill 1632000
An Act to revise the
Limitations Act
CONTENTS
Definitions and Application
1.
2.
3.
Definitions
Application
Crown
Basic Limitation Period
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Basic limitation period
Discovery
Minors
Incapable persons
Litigation guardians
Appointment of litigation guardian on motion by potential defendant
Assaults and sexual assaults
Attempted resolution
Successors
Acknowledgments
Notice of possible claim
Ultimate Limitation Periods
15.
Ultimate limitation periods
No Limitation Period
16.
17.
No limitation period
Undiscovered environmental claims
General Rules
18.
19.
20.
21.
22.
23.
24.
Contribution and indemnity
Other Acts
Variation of time limits
Adding party
Agreements
Conflict of laws
Transition
Amendments and Repeals
25.
26.
27.
28.
29.
Various Acts amended
Limitations Act amended
Business Corporations Act amended
Certification of Titles Act amended
Consumer Reporting Act amended
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
Co-operative Corporations Act amended
Corporations Act amended
Credit Unions and Caisses Populaires Act, 1994 amended
Electricity Act, 1998 amended
Environmental Bill of Rights, 1993 amended
Environmental Protection Act amended
Estates Act amended
Family Law Act amended
Highway 407 Act, 1998 amended
Insurance Act amended
Land Titles Act amended
Loan and Trust Corporations Act amended
Municipal Act amended
Public Lands Act amended
Public Transportation and Highway Improvement Act amended
Reciprocal Enforcement of Judgments Act amended
Solicitors Act amended
Victims' Right to Proceeds of Crime Act, 1994 amended
Amendments respecting Remedies for Organized Crime and Other Unlawful Activities Act, 2000
Commencement
Short title
Schedule
_____________
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Definitions and Application
Definitions
1. In this Act, "
adverse effect" has the same meaning as in the Environmental Protection Act\; ("consquence prjudiciable") "
assault" includes a battery; ("voies de fait") "
claim" means a claim to remedy an injury, loss or damage that occurred as a result of an act or omission; ("rclamation") "
contaminant" has the same meaning as in the Environmental Protection Act\; ("contaminant") "
discharge" has the same meaning as in the Environmental Protection Act\; ("rejet", "rejeter") "
environmental claim" means a claim based on an act or omission that caused, contributed to, or permitted the discharge of a contaminant into the natural environment that has caused or is likely to cause an adverse effect; ("rclamation relative l'environnement") "
natural environment" has the same meaning as in the Environmental Protection Act. ("environnement naturel")
Application
2. (1) This Act applies to claims pursued in court proceedings other than,
(a)proceedings to which the Real Property Limitations Act applies;
(b)proceedings in the nature of an appeal or review, if the time for commencing them is governed by an Act or rule of court;
(c)proceedings to which the Provincial Offences Act applies;
(d)proceedings based on the existing aboriginal and treaty rights of the aboriginal peoples of Canada which are recognized and affirmed in section 35 of the Constitution Act, 1982.
Exception, aboriginal rights
(2) Proceedings referred to in clause (1) (d) are governed by the law that would have been in force with respect to limitation of actions if this Act had not been passed.
Crown
3. This Act binds the Crown.
Basic Limitation Period
Basic limitation period
4. Unless this Act provides otherwise, a proceeding shall not be commenced in respect of a claim after the second anniversary of the day on which the claim was discovered.
Discovery
5. (1) A claim is discovered on the earlier of,
(a)the day on which the person with the claim first knew,
(i)that the injury, loss or damage had occurred,
(ii)that the injury, loss or damage was caused by or contributed to by an act or omission,
(iii)that the act or omission was that of the person against whom the claim is made, and
(iv)that, having regard to the nature of the injury, loss or damage, a proceeding would be an appropriate means to seek to remedy it; and
(b)the day on which a reasonable person with the abilities and in the circumstances of the person with the claim first ought to have known of the matters referred to in clause (a).
Presumption
(2) A person with a claim shall be presumed to have known of the matters referred to in clause (1) (a) on the day the act or omission on which the claim is based took place, unless the contrary is proved.
Minors
6. The limitation period established by section 4 does not run during any time in which the person with the claim,
(a)is a minor; and
(b)is not represented by a litigation guardian in relation to the claim.
Incapable persons
7. (1) The limitation period established by section 4 does not run during any time in which the person with the claim,
(a)is incapable of commencing a proceeding in respect of the claim because of his or her physical, mental or psychological condition; and
(b)is not represented by a litigation guardian in relation to the claim.
Presumption
(2) A person shall be presumed to have been capable of commencing a proceeding in respect of a claim at all times unless the contrary is proved.
Extension
(3) If the running of a limitation period is postponed or suspended under this section and the period has less than six months to run when the postponement or suspension ends, the period is extended to include the day that is six months after the day on which the postponement or suspension ends.
Exception
(4) This section does not apply in respect of a claim referred to in section 10.
Litigation guardians
8. If a person is represented by a litigation guardian in relation to the claim, section 5 applies as if the litigation guardian were the person with the claim.
Definitions
9. (1) In this section, "
potential defendant" means a person against whom another person may have a claim but against whom the other person has not commenced a proceeding in respect of the claim; ("dfendeur ventuel") "
potential plaintiff" means a person who may have a claim against another person but has not commenced a proceeding against that person in respect of the claim. ("demandeur ventuel")
Appointment of litigation guardian
on motion by potential defendant
(2) If the running of a limitation period in relation to a claim is postponed or suspended under section 6 or 7, a potential defendant may make a motion to have a litigation guardian appointed for a potential plaintiff.
Effect of appointment
(3) Subject to subsection (4), the appointment of a litigation guardian ends the postponement or suspension of the running of the limitation period if the following conditions are met:
1.The appointment is made by a judge on the motion of a potential defendant.
2.The judge is satisfied that the litigation guardian,
i.has been served with the motion,
ii.has consented to the appointment in writing, or in person before the judge,
iii.in connection with the claim, knows of the matters referred to in clause 5 (1) (a),
iv.does not have an interest adverse to that of the potential plaintiff, and
v.agrees to attend to the potential plaintiff's interests diligently and to take all necessary steps for their protection, including the commencement of a claim if appropriate.
Non-expiry
(4) The limitation period shall be deemed not to expire against the potential plaintiff until the later of,
(a)the date that is six months after the potential defendant files, with proof of service on the litigation guardian,
(i)a notice that complies with subsection (5), and
(ii)a declaration that, on the filing date, the potential defendant is not aware of any proceeding by the litigation guardian against the potential defendant in respect of the claim;
(b)the date on which the limitation period would otherwise expire after it resumes running under subsection (3).
Notice
(5) The notice,
(a)shall not be served before the first anniversary of the appointment;
(b)shall identify the potential plaintiff, the potential defendant and the claim; and
(c)shall indicate that the claim could be extinguished if a proceeding is not promptly commenced.
Assaults and sexual assaults
10. (1) The limitation period established by section 4 does not run in respect of a claim based on assault or sexual assault during any time in which the person with the claim is incapable of commencing the proceeding because of his or her physical, mental or psychological condition.
Presumption
(2) Unless the contrary is proved, a person with a claim based on an assault shall be presumed to have been incapable of commencing the proceeding earlier than it was commenced if at the time of the assault one of the parties to the assault had an intimate relationship with the person or was someone on whom the person was dependent, whether financially or otherwise.
Same
(3) Unless the contrary is proved, a person with a claim based on a sexual assault shall be presumed to have been incapable of commencing the proceeding earlier than it was commenced.
Attempted resolution
11. If a person with a claim and a person against whom the claim is made have agreed to have an independent third party resolve the claim or assist them in resolving it, the limitation periods established by sections 4 and 15 do not run from the date the agreement is made until the date the claim is resolved or a party terminates or withdraws from the agreement.
Successors
12. (1) For the purpose of clause 5 (1) (a), in the case of a proceeding commenced by a person claiming through a predecessor in right, title or interest, the person shall be deemed to have knowledge of the matters referred to in that clause on the earlier of the following:
1.The day the predecessor first knew or ought to have known of those matters.
2.The day the person claiming first knew or ought to have known of them.
Principals and agents
(2) For the purpose of clause 5 (1) (a), in the case of a proceeding commenced by a principal, if the agent had a duty to communicate knowledge of the matters referred to in that clause to the principal, the principal shall be deemed to have knowledge of the matters referred to in that clause on the earlier of the following:
1.The day the agent first knew or ought to have known of those matters.
2.The day the principal first knew or ought to have known of them.
Same
(3) The day on which a predecessor or agent first ought to have known of the matters referred to in clause 5 (1) (a) is the day on which a reasonable person in the predecessor's or agent's circumstances and with the predecessor's or agent's abilities first ought to have known of them.
Acknowledgments
13. (1) If a person acknowledges the existence of a claim for payment of a liquidated sum, the recovery of property, the enforcement of a charge on property or relief from enforcement of a charge on property, the act or omission on which the claim is based shall be deemed to have taken place on the day on which the acknowledgment was made.
Interest
(2) An acknowledgment of the existence of a claim for interest is an acknowledgment of a claim for the principal and for interest falling due after the acknowledgment is made.
Collateral
(3) An acknowledgment of the existence of a claim to realize on or redeem collateral under a security agreement or to recover money in respect of the collateral is an acknowledgment by any other person who later comes into possession of it.
Realization
(4) A debtor's performance of an obligation under or in respect of a security agreement is an acknowledgment by the debtor of the existence of a claim by the creditor for realization on the collateral under the agreement.
Redemption
(5) A creditor's acceptance of a debtor's payment or performance of an obligation under or in respect of a security agreement is an acknowledgment by the creditor of the existence of a claim by the debtor for redemption of the collateral under the agreement.
Trustees
(6) An acknowledgment by a trustee is an acknowledgment by any other person who is or who later becomes a trustee of the same trust.
Property
(7) An acknowledgment of the existence of a claim to recover or enforce an equitable interest in property by a person in possession of it is an acknowledgment by any other person who later comes into possession of it.
Liquidated sum
(8) Subject to subsections (9) and (10), this section applies to an acknowledgment of the existence of a claim for payment of a liquidated sum even though the person making the acknowledgment refuses or does not promise to pay the sum or the balance of the sum still owing.
Restricted application
(9) This section does not apply unless the acknowledgment is made to the person with the claim, the person's agent or an official receiver or trustee acting under the Bankruptcy and Insolvency Act (Canada) before the expiry of the limitation period applicable to the claim.
Same
(10) Subsections (1), (2), (3), (6) and (7) do not apply unless the acknowledgment is in writing and signed by the person making it or the person's agent.
Same
(11) In the case of a claim for payment of a liquidated sum, part payment of the sum by the person against whom the claim is made or by the person's agent has the same effect as the acknowledgment referred to in subsection (10).
Notice of possible claim
14. (1) A person against whom another person may have a claim may serve a notice of possible claim on the other person.
Contents
(2) A notice of possible claim shall be in writing and signed by the person issuing it or that person's lawyer, and shall,
(a)describe the injury, loss or damage that the issuing person suspects may have occurred;
(b)identify the act or omission giving rise to the injury, loss or damage;
(c)indicate the extent to which the issuing person suspects that the injury, loss or damage may have been caused by the issuing person;
(d)state that any claim that the other person has could be extinguished because of the expiry of a limitation period; and
(e)state the issuing person's name and address for service.
Effect
(3) The fact that a notice of possible claim has been served on a person may be considered by a court in determining when the limitation period in respect of the person's claim began to run.
Exception
(4) Subsection (3) does not apply to a person who is not represented by a litigation guardian in relation to the claim and who, when served with the notice,
(a)is a minor; or
(b)is incapable of commencing a proceeding because of his or her physical, mental or psychological condition.
Acknowledgment
(5) A notice of possible claim is not an acknowledgment for the purpose of section 13.
Admission
(6) A notice of possible claim is not an admission of the validity of the claim.
Ultimate Limitation Periods
Ultimate limitation periods
15. (1) Even if the limitation period established by any other section of this Act in respect of a claim has not expired, no proceeding shall be commenced in respect of the claim after the expiry of a limitation period established by this section.
General
(2) No proceeding shall be commenced in respect of any claim after the 15th anniversary of the day on which the act or omission on which the claim is based took place.
Exception, purchasers for value
(3) Despite subsection (2), no proceeding against a purchaser of property for value acting in good faith shall be commenced in respect of conversion of the property after the second anniversary of the day on which the property was converted.
Period not to run
(4) The limitation period established by subsection (2) does not run during any time in which,
(a)the person with the claim,
(i)is incapable of commencing a proceeding in respect of the claim because of his or her physical, mental or psychological condition, and
(ii)is not represented by a litigation guardian in relation to the claim;
(b)the person with the claim is a minor and is not represented by a litigation guardian in relation to the claim; or
(c)the person against whom the claim is made,
(i)wilfully conceals from the person with the claim the fact that injury, loss or damage has occurred, that it was caused by or contributed to by an act or omission or that the act or omission was that of the person against whom the claim is made, or
(ii)wilfully misleads the person with the claim as to the appropriateness of a proceeding as a means of remedying the injury, loss or damage.
Burden
(5) Subject to section 10, the burden of proving that subsection (4) applies is on the person with the claim.
Day of occurrence
(6) For the purposes of this section, the day an act or omission on which a claim is based takes place is,
(a)in the case of a continuous act or omission, the day on which the act or omission ceases;
(b)in the case of a series of acts or omissions in respect of the same obligation, the day on which the last act or omission in the series occurs;
(c)in the case of a default in performing a demand obligation, the day on which the default occurs.
No Limitation Period
No limitation period
16. (1) There is no limitation period in respect of,
(a)a proceeding for judicial review;
(b)a proceeding for a declaration if no consequential relief is sought;
(c)a proceeding to enforce an order of a court, or any other order that may be enforced in the same way as an order of a court;
(d)a proceeding to obtain support under the Family Law Act or to enforce a provision for support or maintenance contained in a contract or agreement that could be filed under section 35 of that Act;
(e)a proceeding to enforce an award in an arbitration to which the Arbitration Act, 1991 applies;
(f)a proceeding by a debtor in possession of collateral to redeem it;
(g)a proceeding by a creditor in possession of collateral to realize on it;
(h)a proceeding arising from a sexual assault if at the time of the assault one of the parties to it had charge of the person assaulted, was in a position of trust or authority in relation to the person or was someone on whom he or she was dependent, whether financially or otherwise;
(i)a proceeding to recover money owing to the Crown in respect of fines or taxes; or
(j)a proceeding by the Crown or its delivery agent under the Ontario Disability Support Program Act, 1997 or the Ontario Works Act, 1997, as described in subsection (2).
Same
(2) Clause (1) (j) applies to proceedings in respect of claims relating to,
(a)the administration of social, health or economic programs; or
(b)the provision of direct or indirect support to members of the public in connection with social, health or economic policy.
Same
(3) Without limiting the generality of subsection (2), clause (1) (j) applies to proceedings in respect of claims for,
(a)the recovery of social assistance payments, student loans, awards, grants, contributions and economic development loans; and
(b)the reimbursement of money paid in connection with social, health or economic programs or policies as a result of fraud, misrepresentation, error or inadvertence.
Conflict with s. 15
(4) This section and section 17 prevail over anything in section 15.
Undiscovered environmental claims
17. There is no limitation period in respect of an environmental claim that has not been discovered.
General Rules
Contribution and indemnity
18. (1) For the purposes of subsection 5 (2) and section 15, in the case of a claim by one alleged wrongdoer against another for contribution and indemnity, the day on which the first alleged wrongdoer was served with notice of the claim in respect of which contribution and indemnity is sought shall be deemed to be the day the act or omission on which that alleged wrongdoer's claim is based took place.
Application
(2) Subsection (1) applies whether the right to contribution and indemnity arises in respect of a tort or otherwise.
Other Acts, etc.
19. (1) A limitation period set out in or under another Act that applies to a claim to which this Act applies is of no effect unless,
(a)the provision establishing it is listed in the Schedule to this Act; or
(b)the provision establishing it incorporates by reference a provision listed in the Schedule to this Act.
Act prevails
(2) Subsection (1) applies despite any other Act.
Interpretation
(3) The fact that a provision is listed in the Schedule shall not be construed as a statement that the limitation period established by the provision would otherwise apply to a claim as defined in this Act.
Same
(4) If there is a conflict between a limitation period established by a provision referred to in subsection (1) and one established by any other provision of this Act, the limitation period established by the provision referred to in subsection (1) prevails.
Period not to run
(5) Sections 6, 7 and 11 apply, with necessary modifications, to a limitation period established by a provision referred to in subsection (1).
Statutory variation of time limits
20. This Act does not affect the extension, suspension or other variation of a limitation period or other time limit by or under another Act.
Adding party
21. (1) If a limitation period in respect of a claim against a person has expired, the claim shall not be pursued by adding the person as a party to any existing proceeding.
Misdescription
(2) Subsection (1) does not prevent the correction of a misnaming or misdescription of a party.
Agreements
22. (1) A limitation period under this Act applies despite any agreement to vary or exclude it.
Exception
(2) Subsection (1) does not affect an agreement made before the day this Act comes into force.
Conflict of laws
23. For the purpose of applying the rules regarding conflict of laws, the limitations law of Ontario or any other jurisdiction is substantive law.
Definitions
24. (1) In this section, "
effective date" means the day on which this Act comes into force; ("date de l'entre en vigueur") "
former limitation period" means the limitation period that applied in respect of the claim before the coming into force of this Act. ("ancien dlai de prescription")
Application
(2) This section applies to claims based on acts or omissions that took place before the effective date and in respect of which no proceeding has been commenced before the effective date.
Former limitation period expired
(3) If the former limitation period expired before the effective date, no proceeding shall be commenced in respect of the claim.
Former limitation period unexpired
(4) If the former limitation period did not expire before the effective date and if no limitation period under this Act would apply were the claim based on an act or omission that took place on or after the effective date, there is no limitation period.
Same
(5) If the former limitation period did not expire before the effective date and if a limitation period under this Act would apply were the claim based on an act or omission that took place on or after the effective date, the following rules apply:
1.If the claim was not discovered before the effective date, this Act applies as if the act or omission had taken place on the effective date.
2.If the claim was discovered before the effective date, the former limitation period applies.
No former limitation period
(6) If there was no former limitation period and if a limitation period under this Act would apply were the claim based on an act or omission that took place on or after the effective date, the following rules apply:
1.If the claim was not discovered before the effective date, this Act applies as if the act or omission had taken place on the effective date.
2.If the claim was discovered before the effective date, there is no limitation period.
Assault and sexual assault
(7) In the case of a claim based on an assault or sexual assault that the defendant committed, knowingly aided or encouraged, or knowingly permitted the defendant's agent or employee to commit, the following rules apply, even if the former limitation period expired before the effective date:
1.If section 10 would apply were the claim based on an assault or sexual assault that took place on or after the effective date, section 10 applies to the claim, with necessary modifications.
2.If no limitation period under this Act would apply were the claim based on a sexual assault that took place on or after the effective date, there is no limitation period.
Agreements
(8) This section is subject to any agreement to vary or exclude a limitation period that was made before the day this Act comes into force.
Amendments and Repeals
25. The following are repealed:
1.Section 25 of the Ambulance Act.
2.Subsections 34 (6), 130 (7) and 138 (6) of the Business Corporations Act.
3.Subsection 111 (2) of the Co-operative Corporations Act.
4.Subsection 76 (2) of the Corporations Act.
5.Subsection 73 (3) of the Credit Unions and Caisses Populaires Act, 1994.
6.Subsection 4 (3) of the Employers and Employees Act.
7.Section 122 of the Environmental Bill of Rights, 1993.
8.Subsections 99 (13) and (14) of the Environmental Protection Act.
9.Section 50, as amended by the Statutes of Ontario, 1999, chapter 6, section 25, and subsection 61 (4) of the Family Law Act.
10.Subsection 43 (7) of the Highway 407 Act, 1998.
11.Section 206 of the Highway Traffic Act.
12.Subsection 106 (6) of the Loan and Trust Corporations Act.
13.Section 78 of the Mental Health Act.
14.Section 9 of the Mental Hospitals Act.
15.Section 18 of the Motor Vehicle Accident Claims Act.
16.Subsection 284 (2) of the Municipal Act, as amended by the Statutes of Ontario, 1996, chapter 32, section 54.
17.Section 8 of the Negligence Act.
18.Subsection 13 (1) of the Off-Road Vehicles Act.
19.Subsection 30 (1) of the Ontario Mental Health Foundation Act.
20.Section 46 of the Professional Engineers Act.
21.Section 7 of the Public Authorities Protection Act.
22.Section 31 of the Public Hospitals Act.
23.Section 12 of the Public Officers Act.
24.Subsection 33 (5) of the Public Transportation and Highway Improvement Act.
25.Section 33 of the Public Utilities Act.
26.Subsection 139 (4) and subsections 267 (1) and (2) of The Railways Act, being chapter 331 of the Revised Statutes of Ontario, 1950.
27.Section 89 of Schedule 2 to the Regulated Health Professions Act, 1991.
28.Section 86 of the Telephone Act.
29.Section 46 of the Veterinarians Act.
26. (1) Parts II and III of the Limitations Act are repealed and the following substituted:
Express trust: when right
of beneficiary accrues
42. Where land or rent is vested in a trustee upon an express trust, the right of the beneficiary of the trust or a person claiming through the beneficiary to bring an action against the trustee or a person claiming through the trustee to recover the land or rent, shall be deemed to have first accrued, according to the meaning of this Act, at and not before the time at which the land or rent has been conveyed to a purchaser for a valuable consideration, and shall then be deemed to have accrued only as against such purchaser and any person claiming through the purchaser.
Mortgage covenant
43. (1) No action upon a covenant contained in an indenture of mortgage or any other instrument made on or after July 1, 1894 to repay the whole or part of any money secured by a mortgage shall be commenced after the later of,
(a)the expiry of 10 years after the day on which the cause of action arose; and
(b)the expiry of 10 years after the day on which the interest of the person liable on the covenant in the mortgaged lands was conveyed or transferred.
Equity of redemption
(2) No action by a mortgagee against a grantee of the equity of redemption under section 20 of the Mortgages Act shall be commenced after the expiry of 10 years after the day on which the cause of action arose.
Same
(3) Subsections (1) and (2) do not extend the time for bringing an action if the time for bringing it is limited by any other Act.
(2) The title of the Limitations Act is repealed and the following substituted:
Real Property Limitations Act
27. (1) Subsection 131 (2) of the Business Corporations Act is repealed and the following substituted:
Limitation of liability
(2) A director is liable under subsection (1) only if,
(a)the corporation is sued in the action against the director and execution against the corporation is returned unsatisfied in whole or in part; or
(b)before or after the action is commenced, the corporation goes into liquidation, is ordered to be wound up or makes an authorized assignment under the Bankruptcy and Insolvency Act (Canada), or a receiving order under that Act is made against it, and, in any such case, the claim for the debt has been proved.
(2) Subsection 243 (1) of the Act is amended by striking out "within five years after the date of the dissolution of the corporation".
28. Subsection 4 (3) of the Certification of Titles Act is amended by striking out "Limitations Act" and substituting "Real Property Limitations Act".
29. Clause 9 (3) (f) of the Consumer Reporting Act is repealed and the following substituted:
(f)information regarding any collection or debt after seven years following the commencement of the debt obligation, unless the creditor or the creditor's agent confirms that the debt obligation is not barred under the Limitations Act, 2000 and the confirmation appears in the file.
30. (1) Subsection 72 (2) of the Co-operative Corporations Act is repealed and the following substituted:
Limitation of liability
(2) A person is not liable under subsection (1) unless the co-operative has been sued for the debt and execution has been returned unsatisfied in whole or in part.
(2) Subsection 99 (2) of the Act is repealed and the following substituted:
Application to court
(2) Where a co-operative acquires any of its shares or repays any of its loans in contravention of this Act or the articles, any member of the co-operative or, where the acquisition or repayment is in contravention of subsection 32 (2), subsection 67 (1) or section 69, any creditor of the co-operative who was a creditor at the time of the acquisition or repayment, may apply to the court and the court may, if it considers it to be just and equitable under the circumstances, make an order making any member whose shares were acquired liable to the co-operative jointly and severally with the directors, to the extent of the amount paid to the member.
(3) Clause 100 (b) of the Act is amended by striking out "within two years of the declaration".
(4) Subsection 103 (2) of the Act is repealed and the following substituted:
Limitation of liability
(2) A director is liable under subsection (1) only if,
(a)the co-operative is sued in the action against the director and execution against the co-operative is returned unsatisfied in whole or in part; or
(b)before or after the action is commenced, the co-operative goes into liquidation, is ordered to be wound up or makes an authorized assignment under the Bankruptcy and Insolvency Act (Canada), or a receiving order under that Act is made against it, and, in any such case, the claim for the debt has been proved.
(5) Clause 168 (1) (b) of the Act is amended by striking out "within two years".
(6) Subsection 169 (1) of the Act is amended by striking out "within two years from the date of the dissolution and not thereafter".
31. (1) Subsection 81 (2) of the Corporations Act is repealed and the following substituted:
Limitation of liability
(2) A director is liable under subsection (1) only if,
(a)the corporation is sued in the action against the director and execution against the corporation is returned unsatisfied in whole or in part; or
(b)before or after the action is commenced, the corporation goes into liquidation, is ordered to be wound up or makes an authorized assignment under the Bankruptcy and Insolvency Act (Canada), or a receiving order under that Act is made against it, and, in any such case, the claim for the debt has been proved.
(2) Subsection 321 (1) of the Act is amended by striking out "within one year from the date of such dissolution".
32. Subsection 302 (1) of the Credit Unions and Caisses Populaires Act, 1994 is amended by striking out "within two years from the date of the dissolution and not thereafter".
33. (1) Subsection 136 (1) of the Electricity Act, 1998 is amended by striking out "Limitations Act" and substituting "Real Property Limitations Act".
(2) Subsection 136 (2) of the Act is amended by striking out "Limitations Act" and substituting "Real Property Limitations Act".
34. Section 102 of the Environmental Bill of Rights, 1993 is amended by adding the following subsections:
Same
(5) For greater certainty, a limitation period established under this section conflicts with and is in place of any limitation period set out in the Limitations Act, 2000.
Same
(6) Subsection 19 (5) of the Limitations Act, 2000 does not apply to postpone or suspend a limitation period established under subsection (1) by the application of clause (1) (c).
35. Subsection 100 (6) of the Environmental Protection Act is amended by striking out "subsections 99 (6) to (14)" and substituting "subsections 99 (6) to (12)".
36. Section 47 of the Estates Act is amended by striking out "Limitations Act" wherever it appears and substituting in each case "Trustee Act".
37. Section 33 of the Family Law Act, as amended by the Statutes of Ontario, 1997, chapter 20, section 3, 1997, chapter 25, Schedule E, section 1 and 1999, chapter 6, section 25, is further amended by adding the following subsection:
Same
(2.1) The Limitations Act, 2000 applies to an application made by the dependant's parent or by an agency referred to in subsection (3) as if it were made by the dependant himself or herself.
38. Subsection 43 (6) of the Highway 407 Act, 1998 is amended by striking out "the judge before whom the action is tried is of the opinion" and substituting "a judge finds".
39. (1) Section 206 of the Insurance Act is repealed.
(2) Subsection 258 (2) of the Act is repealed.
(3) Section 272 of the Act is repealed.
(4) Statutory condition 12 set out in section 300 of the Act is repealed.
(5) Subsection 301 (6) of the Act is amended by striking out "and statutory condition 12 may be varied by lengthening the period of time prescribed therein".
40. (1) Subsection 44 (4) of the Land Titles Act is amended by striking out "Limitations Act" and substituting "Real Property Limitations Act".
(2) Subsection 51 (1) of the Act is amended by striking out "Limitations Act" and substituting "Real Property Limitations Act".
41. (1) Clause 16 (1) (b) of the Loan and Trust Corporations Act is amended by striking out "within five years after its dissolution".
(2) Subsection 17 (1) of the Act is amended by striking out "and a proceeding to enforce such liability may be commenced within five years after the date of the dissolution of the corporation".
(3) Subsection 107 (2) of the Act is repealed and the following substituted:
Limitation
(2) A director is liable under subsection (1) only if,
(a)the corporation is sued in the action against the director and execution against the corporation is returned unsatisfied in whole or in part; or
(b)before or after the action is commenced the corporation is deemed insolvent and is ordered to be wound up under the Winding-Up Act (Canada).
(4) Subsection 107 (3) of the Act is amended by striking out "clause (2) (b)" and substituting "clause (2) (a)".
42. (1) Subsection 284 (5) of the Municipal Act is amended by striking out "in the case of a county or township within ten days, and in the case of an urban municipality within seven days, after the happening of the injury" and substituting "within 10 days after the happening of the injury".
(2) Subsection 284 (6) of the Act is repealed and the following substituted:
When failure to give notice
is not a bar to action
(6) The failure to give or the insufficiency of the notice is not a bar to the action if a judge finds that there is reasonable excuse for the want or insufficiency of the notice and that the corporation is not prejudiced in its defence.
43. Subsection 17 (1) of the Public Lands Act is amended by striking out "Limitations Act" and substituting "Real Property Limitations Act".
44. Subsection 33 (4) of the Public Transportation and Highway Improvement Act is amended by striking out "but the failure to give or the insufficiency of the notice is not a bar to the action if the judge before whom the action is tried is of the opinion" and substituting "but the failure to give or the insufficiency of the notice is not a bar to the action if a judge finds".
45. Subsection 2 (1) of the Reciprocal Enforcement of Judgments Act is amended by striking out "at any time within six years after the date of the judgment".
46. (1) Section 11 of the Solicitors Act is amended by striking out "if the application is made within twelve months after payment, and".
(2) Section 25 of the Act is amended by striking out "within twelve months after the payment thereof".
47. Section 5 of the Victims' Right to Proceeds of Crime Act, 1994, as amended by the Statutes of Ontario, 1997, chapter 23, section 14, is further amended by striking out "Despite subsection 61 (4) of the Family Law Act and section 45 of the Limitations Act".
48. (1) This section applies only if Bill 155 (An Act to provide civil remedies for organized and other unlawful activities, introduced on December 5, 2000) receives Royal Assent.
(2) On the later of the day this Act comes into force and the day subsection 3 (5) of Bill 155, as set out in the first reading version, comes into force, the Schedule to this Act is amended by adding the following item:
Remedies for Organized Crime and
Other Unlawful Activities Act, 2000subsection 3 (5)
(3) On the later of the day this Act comes into force and the day subsection 8 (5) of Bill 155, as set out in the first reading version, comes into force, subsection 16 (1) of this Act is amended by adding the following clause:
(e.1)a proceeding under section 8 of the Remedies for Organized Crime and Other Unlawful Activities Act, 2000.
(4) On the later of the day this Act comes into force and the day subsection 13 (7) of Bill 155, as set out in the first reading version, comes into force, the Schedule to this Act is amended by adding the following item:
Remedies for Organized Crime and
Other Unlawful Activities Act, 2000subsection 13 (7)
Commencement
49. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.
Short title
50. The short title of this Act is the Limitations Act, 2000.
______________
SCHEDULE
ACT
PROVISION
Assignments and Preferences Act
subsections 26 (2) and 27 (2)
Bulk Sales Act
section 19
Business Corporations Act
subsections 157 (2), 185 (18) and (19), 188 (9), (13)
and (14), and 189 (5)
Business Practices Act
subsection 4 (5)
Commodity Futures Act
section 60.4
Community Small Business Investment Funds Act
subsections 40 (8) and (9)
Condominium Act
subsection 54 (2)
Construction Lien Act
sections 31 and 36
Corporations Act
subsection 37 (2)
County of Oxford Act
subsections 19 (1) and 100 (2)
Creditors' Relief Act
subsections 12 (2) and 32 (6)
District Municipality of Muskoka Act
subsections 17 (1) and 98 (2)
Drainage Act
section 111
Education Act
subsection 218 (2)
Election Act
Elevating Devices Act
subsection 99 (4)
subsection 23 (2)
Employment Agencies Act
subsection 8 (1)
Energy Act
Environmental Bill of Rights, 1993
subsection 23 (2)
section 102
Environmental Protection Act
subsection 108 (1)
Estates Act
subsections 44 (2) and 45 (2) and section 47
Estates Administration Act
subsection 17 (5)
Expropriations Act
section 43
Family Law Act
subsection 7 (3)
Fines and Forfeitures Act
Forestry Workers Lien for Wages Act
Fuel Tax Act
subsection 6 (2)
subsections 8 (1) and 26 (1)
subsection 8 (13)
Gasoline Handling Act
Gasoline Tax Act
subsection 10 (1)
subsection 5 (13)
Greater Toronto Services Board Act, 1998
subsections 35 (1) and 57 (1)
Income Tax Act
section 38
Insurance Act
subsection 148 (2), statutory condition 14
Libel and Slander Act
section 6
Liquor Licence Act
subsection 44.1 (4)
Mortgages Act
subsections 21 (2) and 54 (2)
Municipal Act
subsections 44 (2) and 134 (3), section 138 and subsection 153 (2)
Municipal Conflict of Interest Act
subsections 9 (1) and (3)
Municipal Elections Act, 1996
subsections 58 (2), 63 (1), 80 (6) and 83 (2)
Municipal Tax Sales Act
subsection 10 (3)
Ontario Home Ownership Savings Plan Act
section 18
Operating Engineers Act
subsection 24 (2)
Personal Property Security Act
subsections 44 (13) and (14)
Public Lands Act
subsection 34 (3)
Reciprocal Enforcement of Judgments (U.K.) Act
paragraph 1 of article iii of the Schedule
Regional Municipalities Act
subsections 14 (1) and 123 (2)
Securities Act
section 129.1, subsection 136 (5) and section 138
Succession Law Reform Act
section 61
Tile Drainage Act
subsection 2 (3)
Tobacco Tax Act
subsection 24 (5)
Trustee Act
subsections 38 (3) and 47 (1)
Victims' Right to Proceeds of Crime Act, 1994
section 5
EXPLANATORY NOTE
The Bill deals comprehensively with limitation periods (except those affecting the specialized area of real property).
A basic limitation period of two years is established (section 4), running from the day a claim is discovered (section 5). A claim is discovered when the person with the claim is, or ought to be, aware of the material facts. This basic limitation period replaces the general limitation periods found in the existing Limitations Act and most of the numerous special limitation periods found in individual statutes (see section 19 and the Schedule for a list of the special limitation periods that will be preserved).
The basic limitation period does not run while the person with the claim is unable to pursue it because of being an unrepresented minor (section 6) or incapable person (section 7). Likewise it does not run during the life of an agreement to have an independent third party resolve or assist in resolving the claim (section 11).
When a person with a claim is represented by a litigation guardian in relation to the claim, the discovery rules in section 5 apply to the litigation guardian (section 8). When a potential plaintiff is under disability, a potential defendant may end the suspension or postponement of the running of the limitation period under section 6 or 7 by making a motion to have a litigation guardian appointed for the potential plaintiff and meeting other conditions (section 9).
Special rules are established for claims based on assault and sexual assault (section 10). The basic limitation period does not run while the person with the claim is incapable of commencing the proceeding because of his or her physical, mental or psychological condition. A person who has a claim based on assault and who, at the time of the assault, had an intimate relationship with or was dependent on one of the parties to the assault, is presumed (unless the contrary is proved) to have been incapable of commencing the proceeding earlier than it was in fact commenced. A person with a claim based on sexual assault is presumed (unless the contrary is proved) to have been incapable of commencing the proceeding earlier than it was commenced.
Detailed rules are provided for determining whether claims of a financial nature have been acknowledged, which starts the limitation period running afresh (section 13).
The Bill provides that a person against whom another person may have a claim may serve a notice of possible claim on that other person. The service of such a notice may amount to discovery and thus start the limitation period running (section 14).
The Bill also establishes an ultimate limitation period of 15 years that runs from the day the act or omission on which the claim is based takes place (section 15). No proceeding may be commenced when the ultimate limitation period has run, irrespective of when the claim was discovered. The ultimate limitation period does not run during the incapacity of the person with the claim, during the person's minority or during any time in which the person against whom the claim is made wilfully concealed essential facts or misled the person with the claim. An ultimate limitation period of two years is established for claims against good faith purchasers for conversion of goods; nothing stops the running of this limitation period.
The Bill lists a variety of proceedings in respect of which there is no limitation period (section 16): proceedings for judicial review and declarations; proceedings to enforce court orders and other orders that are enforceable in the same way as court orders; proceedings under the Family Law Act relating to support; proceedings to enforce arbitration awards; proceedings by persons in possession of collateral to redeem or realize on it; proceedings arising from sexual assault in certain circumstances; proceedings to recover fines or taxes owing to the Crown; proceedings relating to claims by the Crown (or by a delivery agent under social welfare legislation) in various circumstances. There is also no limitation period in respect of undiscovered environmental claims (section 17). Sections 16 and 17 prevail over section 15.
The Bill contains a number of general provisions dealing with technical matters (sections 18 to 24). The most significant of these is section 19, which provides that limitation periods set out in other statutes are of no effect unless they are preserved by being listed in the Schedule. These special limitation periods, like the new limitation periods established by the Bill, do not run during the incapacity or minority of the person with the claim or while the claim is submitted to an independent third party for resolution.
Detailed rules are provided for the treatment of claims that arose before the coming into force of the new Act (section 24).
The Bill repeals and amends numerous provisions of other statutes that relate to limitation periods (sections 25 to 48). The portion of the existing Limitations Act that deals with real property is preserved and retitled Real Property Limitations Act (section 26).