 Limitations Act
What
is the issue?
The Limitations Act, 2002, became law on December 9, 2002, as part of Schedule B of the Justice Statute Law Amendment Act. With this new Act, the discovery period was reduced from six years to two years during which a claim may be filed after the cause of the claim is, or ought to have been, discovered. Under the principle of discoverability, the limitation period starts only when the damage manifests itself and the plaintiff first discovers it. Before this Act, the Ministry of the Attorney General had been considering a 10-year ‘ultimate limitation’ period for building construction and design that would become a 30-year ‘ultimate limitation’ period in cases of personal injury or environmental damage, where no legal proceeding can commence following that period. In October of 2000, OSPE provided feedback to the Ministry that an ultimate limitation period of 10 years be established for all engineering services. An ultimate limitation period of 15 years was implemented on January 1, 2004 with the introduction of the Limitations Act, 2002.
The Ministry of the Attorney General has now decided to revisit the Act by introducing Bill 14: Access to Justice Act, 2005 on October 27, 2005. The Ministry’s proposals will nullify advocacy efforts made by OSPE prior to the Limitations Act, 2002. The proposed legislation will amend the Limitations Act, 2002 by extending the limitation period from 15 years to perpetuity. Ultimately, this can result in litigation decades after engineering services were rendered.
Why is this
an important issue for engineers?
The ultimate limitation period protects professional engineers from claims and lawsuits on work performed after a 15-year period. With its removal, engineers are vulnerable to claims until their death, and in certain circumstances, against their estate. Without an ultimate limitation period, engineers will be significantly burdened with on-going costly and time-consuming legal suits between engineering service providers and purchasers that can have the potential to impede on the ability to do business.
In addition, the extension of the limitation period will increase the probability that evidence has deteriorated or become unreliable due to excessive delay. Engineers will rarely experience piece of mind on services provided due to the fear that purchasers can seek litigation at any time in the future.
OSPE’s
position
OSPE is advocating to the Ministry of the Attorney General to maintain the previous 15-year ultimate limitation period. This will provide sufficient time for litigants to pursue claims.
Developments
June
15, 2006 - Concerns of professional engineers
to be heard on Limitations Act.
Mar.
9, 2006 - Ministry of the Attorney General meets
with OSPE to discuss proposed changes to Limitations
Act.
Feb. 20, 2006 - OSPE
and other stakeholders, including the Ontario
Architects Association and Consulting Engineers
Ontario met to discuss a strategy for a Feb. 23
meeting with the Ministry of the Attorney General.
Jan.
24, 2006 - Unexpected changes to Limitations Act
provoke controversy.
Jan. 4, 2006 – OSPE
meets with the Ministry of the Attorney General.
The Ministry announces that it was prepared to
work with OSPE and other stakeholders, to address
the impact of the proposed changes on professional
engineers.
Nov. 30, 2005 - OSPE
meets with the Ontario Architects Association
and other stakeholders to discuss the impact of
the new changes on the building design and construction
industries.
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