{"id":754,"date":"2018-04-09T18:51:54","date_gmt":"2018-04-09T22:51:54","guid":{"rendered":"http:\/\/limitations.ca\/?p=754"},"modified":"2018-04-09T18:51:54","modified_gmt":"2018-04-09T22:51:54","slug":"ontario-the-court-of-appeal-reminds-that-limitations-defences-are-affirmative","status":"publish","type":"post","link":"http:\/\/limitations.ca\/?p=754","title":{"rendered":"Ontario: The Court of Appeal reminds that limitations defences are affirmative"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>Two aspects of the Court of Appeal decision in <a href=\"http:\/\/canlii.ca\/t\/hr1c4\" target=\"_blank\"><em>Abrahamovitz v. Berens <\/em><\/a>are noteworthy.<\/p>\n<blockquote><p>First, the court explains why the expiry of the limitation period is a defence that must be pleaded in enough detail to makes this a candidate for leading decision on the principle:<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par30\"><\/a>30]\u00a0\u00a0 \u00a0\u00a0\u00a0This court explained in\u00a0<em>Beardsley v. Ontario<\/em>\u00a0<span class=\"reflex3-block\">(2001),\u00a0<a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2001\/2001canlii8621\/2001canlii8621.html\">2001 CanLII 8621 (ON CA)<\/a>,\u00a0<span class=\"reflex3-alt\">57 O.R. (3d) 1 (C.A.)<\/span>, at para. 21<\/span>\u00a0that \u201cthe expiry of a limitation period does not render a cause of action a nullity; rather, it is a defence and must be pleaded\u201d. See also:<em>Strong v. Paquet Estate<\/em><em>\u00a0<span class=\"reflex3-block\">(2000),\u00a0<a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2000\/2000canlii16831\/2000canlii16831.html\">2000 CanLII 16831 (ON CA)<\/a>,\u00a0<span class=\"reflex3-alt\">50 O.R. (3d) 70 (C.A.)<\/span>, at paras. 35-37<\/span>;\u00a0<\/em><em>Tran v. University of Western Ontario<\/em>,\u00a0<span class=\"reflex3-block\"><a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2016\/2016onca978\/2016onca978.html\"><span class=\"reflex3-alt\">2016 ONCA 978<\/span>\u00a0(CanLII)<\/a>,\u00a0<span class=\"reflex3-alt\">410 D.L.R. (4th) 527<\/span>, at para. 18<\/span>; and\u00a0<em>Salewski v. Lalonde<\/em>,\u00a0<span class=\"reflex3-block\"><a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2017\/2017onca515\/2017onca515.html\"><span class=\"reflex3-alt\">2017 ONCA 515<\/span>\u00a0(CanLII)<\/a>,\u00a0<span class=\"reflex3-alt\">137 O.R. (3d) 750<\/span>, at para. 43<\/span>.<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par31\"><\/a>31]\u00a0\u00a0 \u00a0\u00a0\u00a0There are two aspects to the statement from\u00a0<em>Beardsley<\/em>. One is that from a procedural fairness point of view, a plaintiff is entitled to plead in response to a limitations defence, so that if a motion is brought to dismiss the claim, the court will have all the facts relied on to assess discoverability, or whatever other factors a plaintiff may wish to raise in response:\u00a0<em>Beardsley<\/em><em>, at para. 22<\/em>;<em>Strong Estate<\/em><em>, at para. 38<\/em>;\u00a0<em>Metropolitan Toronto Condominium Corp. No. 1352 v. Newport Beach Development Inc.<\/em>,\u00a0<span class=\"reflex3-block\"><a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2012\/2012onca850\/2012onca850.html\"><span class=\"reflex3-alt\">2012 ONCA 850<\/span>\u00a0(CanLII)<\/a>,\u00a0<span class=\"reflex3-alt\">113 O.R. (3d) 673<\/span>, at paras. 115-116<\/span>; and\u00a0<em>Greatrek Trust S.A.\/Inc. v. Aurelian Resources Inc.<\/em>,\u00a0<span class=\"reflex3-block\" data-path=\"\/en\/reflex\/154877.html\"><span class=\"reflex3-alt\">[2009] O.J. No. 611 (Ont. S.C.J.)<\/span>, at para. 18<\/span>.<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par32\"><\/a>32]\u00a0\u00a0 \u00a0\u00a0\u00a0The requirement that an affirmative defence, including a limitations defense, be pleaded to avoid surprise to the opposite party is reflected in\u00a0<a class=\"reflex2-link\" href=\"https:\/\/www.canlii.org\/en\/on\/laws\/regu\/rro-1990-reg-194\/latest\/rro-1990-reg-194.html#sec25.07subsec4_smooth\">r. 25.07(4)<\/a>\u00a0of the\u00a0<em><a class=\"reflex2-link\" href=\"https:\/\/www.canlii.org\/en\/on\/laws\/regu\/rro-1990-reg-194\/latest\/rro-1990-reg-194.html\">Rules of Civil Procedure<\/a><\/em>, which provides:<\/p>\n<p class=\"CQuote\">In a defence, a party shall plead any matter on which the party intends to rely to defeat the claim of the opposite party and which, if not specifically pleaded, might take the opposite party by surprise or raise an issue that has not been raised in the opposite party\u2019s pleading.<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par33\"><\/a>33]\u00a0\u00a0 \u00a0\u00a0\u00a0The second aspect of the statement from\u00a0<em>Beardsley<\/em>, however, is more germane to this case. A limitations defence is \u201cjust that, a defence\u201d:\u00a0<em>Lacroix (Litigation Guardian of) v. Dominique<\/em>,\u00a0<span class=\"reflex3-block\"><a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/mb\/mbca\/doc\/2001\/2001mbca122\/2001mbca122.html\"><span class=\"reflex3-alt\">2001 MBCA 122<\/span>\u00a0(CanLII)<\/a>,\u00a0<span class=\"reflex3-alt\">202 D.L.R. (4th) 121<\/span>, at para. 18<\/span>. A defendant chooses whether or not to rely on a limitations defence, but is not obliged to do so: Graeme Mew, Debra Rolph, &amp; Daniel Zacks,\u00a0<em>The Law of Limitations<\/em>, 3rd ed. (Toronto: LexisNexis Canada Inc., 2016) p.166. See\u00a0<i>e.g.<\/i>:<i>\u00a0<em>Strong Estate<\/em><\/i><em>, at paras. 35-40; and\u00a0<\/em><em>Girsberger v. Kresz<\/em>\u00a0<span class=\"reflex3-block\">(2000),\u00a0<a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onsc\/doc\/2000\/2000canlii22406\/2000canlii22406.html\">2000 CanLII 22406 (ON SC)<\/a>,\u00a0<span class=\"reflex3-alt\">50 O.R. (3d) 157 (C.A.)<\/span>, at para. 13<\/span>.<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par34\"><\/a>34]\u00a0\u00a0 \u00a0\u00a0\u00a0The fact that the choice belongs to the defendant is codified in\u00a0<a class=\"reflex2-link\" href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/so-2002-c-24-sch-b\/latest\/so-2002-c-24-sch-b.html#sec22_smooth\">s. 22<\/a>\u00a0of the\u00a0<em><a class=\"reflex2-link\" href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/so-2002-c-24-sch-b\/latest\/so-2002-c-24-sch-b.html\">Limitations Act, 2002<\/a><\/em>, which allows a limitation period to be suspended or extended by agreement.<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par35\"><\/a>35]\u00a0\u00a0 \u00a0\u00a0\u00a0This is a very important and useful provision that allows parties to a potential claim to suspend the running of a limitation (toll the limitation period) to allow them to conduct investigations or settlement discussions, without pressure on the claimant to commence the action unnecessarily. It promotes judicial economy and is cost-effective for the parties.<\/p>\n<p class=\"AParaNumbering\">[<a class=\"paragAnchor\" name=\"par36\"><\/a>36]\u00a0\u00a0 \u00a0\u00a0\u00a0Obviously, this provision would be ineffective if another party could assert the limitation period in spite of the defendant\u2019s agreement to toll the limitation period, or if the action became a nullity on the expiry of the limitation period. See for example,\u00a0<em>Schreiber v. Lavoie\u00a0<\/em><em><span class=\"reflex3-block\">(2002),<\/span><\/em>\u00a0<a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onsc\/doc\/2002\/2002canlii49430\/2002canlii49430.html\">2002 CanLII 49430 (ON SC)<\/a>,\u00a0<span class=\"reflex3-alt\">59 O.R. (3d) 130 (S.C.J.)<\/span>, where a third party was not entitled to rely on r. 29.05(1) (a rule which allows a third party to plead a defence not raised by the defendant) to assert a limitations defense that the defendant had expressly agreed it would not rely on.<\/p>\n<\/blockquote>\n<p>Second, there is a reminder that special circumstances doctrine is of no application:<\/p>\n<blockquote><p>[<a class=\"paragAnchor\" name=\"par24\"><\/a>24]\u00a0\u00a0 \u00a0\u00a0\u00a0I would not accept this argument for two reasons. First, the Estate has not commenced any proceeding or claimed any relief. The essence of this argument amounts to invocation of the old common law doctrine of special circumstances that no longer applies under the\u00a0<em><a class=\"reflex2-link\" href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/so-2002-c-24-sch-b\/latest\/so-2002-c-24-sch-b.html\">Limitations Act, 2002<\/a><\/em>. See:\u00a0<em>Joseph v. Paramount Canada&#8217;s Wonderland<\/em>,\u00a0<span class=\"reflex3-block\"><a class=\"reflex3-caselaw\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2008\/2008onca469\/2008onca469.html\"><span class=\"reflex3-alt\">2008 ONCA 469<\/span>\u00a0(CanLII)<\/a>,\u00a0<span class=\"reflex3-alt\">90 O.R. (3d) 401<\/span><\/span>. The Estate is essentially saying that because all of the facts have already been pleaded in the action, there is no surprise and no prejudice to the defendants (or other parties) to allow the Estate to be added as a party now, even though the limitation period has expired.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Two aspects of the Court of Appeal decision in Abrahamovitz v. Berens are noteworthy. First, the court explains why the expiry of the limitation period is a defence that must be pleaded in enough detail to makes this a candidate for leading decision on the principle: [30]\u00a0\u00a0 \u00a0\u00a0\u00a0This court explained in\u00a0Beardsley v. Ontario\u00a0(2001),\u00a02001 CanLII &hellip; <a href=\"http:\/\/limitations.ca\/?p=754\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Ontario: The Court of Appeal reminds that limitations defences are affirmative<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[288,190,454,43,36,121],"class_list":["post-754","post","type-post","status-publish","format-standard","hentry","category-ontario","tag-affirmative-defence","tag-civil-procedure","tag-less-than-special-circumstances","tag-ontario-court-of-appeal","tag-pleading","tag-special-circumstances"],"_links":{"self":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts\/754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=754"}],"version-history":[{"count":1,"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts\/754\/revisions"}],"predecessor-version":[{"id":755,"href":"http:\/\/limitations.ca\/index.php?rest_route=\/wp\/v2\/posts\/754\/revisions\/755"}],"wp:attachment":[{"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=754"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/limitations.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}