A strong case can be lost without anyone ever looking at the evidence. If a lawsuit starts after the limitation period has expired, the defendant can use that alone as a complete defence. The contract may have been breached, the damage may be obvious, the other side may even have promised to make things right, and the claim can still fail on the calendar.
Ontario’s general rule looks simple: two years. Much of the difficulty lies in working out when those two years began, whether a different period applies, and whether anything has paused or restarted the count. People often get into trouble by assuming that talking, negotiating or sending a stern letter buys time. Usually it does not.
This post gives general information on Ontario limitation periods. It is not legal advice, and calculating a deadline for a real claim should be done with your specific facts and documents in hand.
The Basic Rule and the Idea of Discovery
Ontario’s Limitations Act, 2002 says that, unless the Act provides otherwise, a proceeding cannot be commenced after the second anniversary of the day the claim was discovered. Note the word “discovered”. The clock generally does not depend on when you got around to reading the fine print.
Under section 5, a claim is discovered on the earlier of two dates. The first is the day you actually knew all of the following: that a loss occurred, that it was caused or contributed to by an act or omission, that the act or omission was that of the person you would sue, and that a court proceeding would be an appropriate way to fix it. The second is the day a reasonable person with your abilities and in your circumstances ought to have known those things.
Two further points follow from that wording. First, you are presumed to have known these matters on the day the act or omission took place, unless you prove otherwise. If you plan to rely on a later discovery date, you should be ready to explain why. Second, the test includes what you should have known. You cannot extend the period by choosing not to look into a problem.
Consider a hypothetical. A Brampton homeowner has a basement waterproofed in May. A damp patch appears the next spring, and a contractor’s inspection in June of that year reveals a serious defect. The discovery date might well be somewhere around that later inspection, or it might be earlier if the signs were clear to a reasonable person. Reasonable people could argue about it, and that is precisely why a careful plaintiff works from the earliest date that a court might choose.
The deadline is generally met by starting a proceeding, which means having the originating document issued by the court. In Small Claims Court, that is a Plaintiff’s Claim, and in the Superior Court of Justice it is usually a statement of claim or a notice of action. Serving the document on the defendant comes afterward and has its own time limit, normally six months.
The following steps do not start a proceeding, and they do not stop the limitation clock on their own:
- a demand letter, however strongly worded;
- a complaint to a regulator, insurer or government agency;
- a police report;
- an email chain in which the other side says they are “looking into it”;
- hiring a lawyer, or booking a consultation.
If you are close to the two-year mark and still hoping to settle, issuing a claim can sometimes be done while discussions continue. Another option is a written tolling agreement, discussed below.
Common Examples, and How the Date Can Move
An unpaid invoice. The clock often begins when payment was due and not made. Keep the terms in mind: an invoice due in 30 days is treated differently from one with no stated due date, and a running account may raise further questions.
A demand loan. If a loan is payable on demand, the Act has its own rule. The loss is treated as occurring on the first day there is a failure to perform after a demand is made. A loan to a relative with no fixed repayment date may therefore be treated very differently from a loan due on a set date. It depends on how the agreement is characterized, and informal family loans are often unclear on exactly that point.
A breach of contract. Generally, the period is tied to when you knew or ought to have known of the breach and of the resulting loss. Where a problem has been hidden, or where a professional gave reassurances and tried to fix it, discovery can be debated. A promise to fix something does not automatically postpone the period, so do not rely on one without advice.
A personal injury. Two years from discovery is the usual starting assumption, and in many accidents the date is clear. For an injury that develops slowly, the date of discovery may require a closer look.
A claim against a contractor for bad work. Depending on the facts, the time may be tied to when you found the defect and its cause. The other party’s name can matter too, especially where a corporation or subcontractor was involved. If you only learn much later who actually did the work, the identity element of discovery may be relevant to the claim against that party.
Deadlines Much Shorter Than Two Years
Assuming two years can be dangerous, because several Ontario rules set far tighter limits:
- Injuries on municipal roads and sidewalks. The Municipal Act, 2001 requires written notice to the municipality within 10 days for claims about the state of repair of a highway or bridge, such as a fall on an icy sidewalk in Brampton. Failing to give notice may bar the claim unless there is a reasonable excuse and the municipality is not prejudiced. Note that this is a notice requirement, separate from the limitation period for the claim itself.
- Construction liens. Preservation and perfection deadlines under the Construction Act are measured in days, not years. They can be lost long before a two-year debt claim expires, although losing a lien does not by itself destroy the underlying contract claim. See the firm’s page on construction and general liens for that area.
- Claims involving someone who has died. The Trustee Act generally sets a two-year period running from the date of death for certain claims by or against an estate. This date may not match the date on which the loss was discovered, and it is often missed.
- Insurance policies and statutes in specific fields. A policy or other legislation can impose separate time limits, including in employment and regulatory settings. Read your policy and ask early.
- Tribunal deadlines. Some matters are not lawsuits at all, and the tribunal’s rules supply their own time limits.
If your dispute involves a government body, a professional, an estate or an insurer, do not rely on the general rule without checking.
The 15-Year Outer Limit
Discovery can delay the start of the basic period, but it cannot do so indefinitely. Section 15 sets an ultimate limitation period: no proceeding can begin after the 15th anniversary of the act or omission on which the claim is based, whether or not you knew about it, subject to limited exceptions. For instance, the ultimate period does not run while a person is an unrepresented minor, or during an incapacity without a litigation guardian, or while a defendant wilfully conceals the injury or misleads someone about whether a proceeding would be appropriate.
Events That Can Pause or Restart the Clock
A few provisions can change the arithmetic. They are narrow, and you should not assume that they apply without checking.
Minors and people who are incapable. The basic period does not run while the person with the claim is a minor or is incapable of starting a proceeding because of a physical, mental or psychological condition, if they do not have a litigation guardian for the claim. An adult is presumed to be capable unless the contrary is proved.
A signed acknowledgement. Where someone acknowledges liability for a fixed sum of money, the Act treats the act or omission as having occurred on the date of the acknowledgement. That generally must be in writing and signed. For a claim for a fixed sum, a part payment can have the same effect. If a debtor sends you a signed note saying “I know I owe you $9,000 and will pay”, keep it safe. It is not a reason to wait, but it could be important.
Agreements to use a neutral third party. If you and the other party have agreed to have an independent third party resolve the claim or help you resolve it, such as in a mediation, the basic and ultimate periods are suspended from the date of that agreement until the claim is resolved, the process ends, or a party withdraws. A casual suggestion to “get someone to sit down with us” may not be enough, so get a clear signed agreement.
A tolling or standstill agreement. Parties can agree in writing to suspend or extend the basic limitation period. This is a useful tool if you want to negotiate without suing, but it has to be properly drafted, signed by the right parties and clear about what happens at the end.
Claims for contribution and indemnity. If you are sued and want to claim over against someone else, there is a separate rule for that claim. Generally, the two-year period is presumed to run from the date you were served with the claim against you. Mention that date to your lawyer right away.
Contracts That Change the Period
A limitation period in the Act generally applies despite any agreement to vary it, with some exceptions. One important exception involves business agreements. If neither party is a consumer, the parties may vary or exclude the basic period under the rules in section 22, so a commercial contract might shorten the time for bringing a claim. A small company in the Bramalea industrial area might sign a supply contract with a one-year claims clause without ever noticing it.
Consumers get more protection. A contract with a person acting for personal, family or household purposes generally cannot reduce the period in the same way. Even so, read the document and raise the point if it contains any time-limit language.
Deadlines That Do Not Run Against Court Orders
There is no limitation period for a proceeding to enforce a court order. So a judgment itself does not expire the way an ordinary claim does. Enforcement tools have their own timelines, however, such as writs that expire and must be renewed, and leave requirements in some cases if too many years have passed. If you hold an older judgment, the right to collect may still be alive, but the mechanics need checking.
Also on the longer end, claims to recover land are governed by a different statute, the Real Property Limitations Act, which contains its own periods, including a 10-year period in many cases. A boundary or ownership dispute should not be assumed to follow the two-year rule.
How to Protect Yourself in Practice
Treat a possible claim the way you would treat a tax deadline. A few steps can keep things from going wrong:
- Write down the first date you noticed the problem, and how you noticed it.
- Record when the wrongful act happened, and who did it, as distinct from when you learned of it.
- Keep every relevant message, invoice and report in one folder.
- Pick the earliest date that a court could plausibly say was your discovery date, and count two years from it. Then set a reminder several months earlier.
- If talks are dragging on, consider a written tolling agreement or issue the claim before the period expires.
- Check whether a notice requirement or special rule applies. This is especially urgent for injuries on municipal property, construction work and matters involving an estate.
If you are on the other side of a claim, the same thinking applies in reverse. A limitation defence should be raised in your pleading, and you should get advice about it as soon as you are served.
When to Get a Second Pair of Eyes
The stakes of a wrong calculation are lopsided. Starting a claim a few months early rarely hurts. Starting it a day late can end the claim. If you are approaching a two-year mark, or you are unsure when the period started, bring your timeline to someone who can review it. Our civil litigation team can look at the dates and the documents, and you can reach Sawan Law House through the contact page. Whoever you consult, go early. Even a good lawyer cannot revive an expired claim.