Introduction

A new Limitation Act1 in British Columbia will come into force on June 1, 2013.

Limitation Period

Under the expiring Limitation Act2, the limitation period for a claim which alleges an error or omission of a professional nature is normally six years. But under the new Act when bringing an error or omission claim against a professional, a claimant will now have two years to start an action.

The new two year limitation period will begin to run from the time the cause of action ought to reasonably have been discovered. Discovery occurs when a claimant knows, or ought to reasonably know, all of the following:

  • injury, loss or damage has occurred;
  • injury, loss or damage was caused by an act or omission;
  • the act or omission was by the person against whom the claim is or may be made; and having regard to the nature of injury, loss or damage, a court proceeding would be an appropriate means to seek a remedy.

There is a fifteen year ultimate limitation period to start a claim under the new Act. Therefore, if the right to bring a claim has not been discovered within 15 years, the claim is extinguished. This 15 year period also includes seeking remedies outside of the court system, such as arbitration. The expiring Act provides for a 30 year ultimate limitation period.

Contribution/Indemnity

The new two year limitation period also applies to a third party claim for contribution or indemnity. The limitation period will start to run on the later of:

  • when a person is served with a pleading (i.e. a Notice of Civil Claim); or
  • when a person knew or ought to have known a claim should have been made.

Transition Rules

If a claim is discovered before June 1, 2013, the expiring Act will apply. If a claim exists before June 1, 2013, but is not discovered until after that date, the new Act will apply.

Footnotes

1 Bill 34, 2012 Limitation Act, 4th Sess, 39th Parl, British Columbia, 2012 (assented to 14 May 2012).

2 Limitation Act, RSBC 1996, c 266.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.