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Limitation Period Deadlines: Statutory Time Limits for Commencing Litigation Proceedings
Question: What is the significance of limitation periods in legal proceedings?
Answer: Limitation periods are critical deadlines that restrict when you can initiate a lawsuit, with the general two-year limit set by the Limitations Act, 2002, [S.O. 2002, Chapter 24, Schedule B]. Missing this deadline can result in losing your right to sue, thus highlighting the importance of timely action in protecting your legal rights.
Limitation Periods Are Deadlines Upon the Right to Sue
What are known as limitation periods are merely the time limits that restrict when legal proceedings may be commenced. Wait too long and the right to start a lawsuit is lost. In Ontario, the Limitations Act, 2002, S.O. 2002, Chapter 24, Schedule B, provides a general limitation period of two (2) years, with some exceptions, after which a right of action, meaning the legal right to sue, will expire and be lost forever.
The Law
The Limitations Act, 2002, statutorily prescribes a two-year limitation period within which a lawsuit must be brought or the right to commence a lawsuit may subsequently become barred whereas it is said:
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.
The Limitations Act, 2002, as a general statute, may be superseded by other statutes, such as the Insurance Act, R.S.O. 1990, c. I.8, the Real Property Limitations Act, R.S.O. 1990, c. L.15, among others, whereas these statutes directly address certain types of matters where limitation periods specific to those matters are defined. The primary purpose of limitation periods is to provide peace to potential defendants whereby upon expiry of the time limit, a potential defendant may rest knowing the risk and fear of lawsuit is relinquished and any right of action has become stale or lapsed. Accordingly, the need to hang onto potential evidence is relieved, and retained legal representation may be discharged. Essentially, the potential defendant is relieved of further worry or concern whereas once a limitation period has expired, the right to bring legal action is statute barred, meaning forbidden. If a legal action is commenced outside this period, then the action will likely be struck down as there are few exceptions to limitations rules.