For many but not all claims, the limitation period in Ontario is two years from the date of the loss. For example, if you sustained a physical injury in a car accident on January 7, 2022, your limitation period would be no later than January 7, 2024.
Sometimes potential litigants dismiss their injuries as unlikely to attract high damage awards or to be worth the stress of litigation. With time, they may change their mind, but only decide to contact a lawyer far after the accident occurs. This can result in very short windows in which to retain counsel and have them draft and finalize a statement of claim. A statement of claim is a document that, once issued by the court, initiates a lawsuit.
One method of ensuring that your lawyer has enough time to produce a strategic, complete, and well-drafted statement of claim within the limitation period is to first have them file a Notice of Action. A Notice of Action sets out the basic details of the nature of the losses sustained and the dispute as between the parties to the eventual Statement of Claim. You will then have 30 additional days from the date of its issuance by the Court to file a Statement of Claim, which sets out the losses and dispute in much more detail.
A Notice of Action is also a strategic way to extend the timeline for settlement discussions in cases where the cost of litigation may outweigh the value of the damages, and out-of-court settlement is preferred.
In short, Notices of Action help claimants from missing their chance to seek justice in the context of a formal court proceeding, and allows your lawyer to develop the best litigation strategy possible.
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.