Sunday, November 16, 2008

Adding a party after the limitation period expires

Friday's decision in Spirito Estate v. Trillium Health Centre, 2008 ONCA 762 provides a useful summary of the current law regarding adding a party to an exisiting action after a limitation period expires. The simplistic summary is, once the limitation peiod has expired, subject to discoverability, you cannot add a party. The Court writes:

[7] This court has recently dealt with s. 21(1) in two cases. Meady v. Greyhound Canada Transportation Corp., 2008 ONCA 468 was a case where the transition provisions of s. 24 of the Act applied because the act or omission took place before the effective date of the new Act (January 1, 2004) but no proceeding against the person sought to be added as a party had been commenced before the effective date. As a result of the transition provisions, this court held that the former limitation period applied, consequently so did the common law of special circumstances. Section 21(1) of the new Act did not apply. In Joseph v. Paramount Canada’s Wonderland, 2008 ONCA 469, this court dealt with the application of s. 21 where the new Limitation Act did apply. Speaking for the court, Feldman J.A. held that the effect of s. 21(1) was to abolish the doctrine of special circumstances. As she held at para. 16, “s. 21 of the Act precludes the addition of parties to an existing action after the expiry of a limitation period”.

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