Limitation period for a cross-claim against a concurrent tortfeasor for contribution and indemnity

Waterloo Region District School Board v. Truax Engineering Ltd., 2010 ONCA 838 considers whether a person who has been sued for damages by a plaintiff and who wishes to bring a cross-claim against a concurrent tortfeasor for contribution and indemnity, may bring the claim at a time when the plaintiff's claim against the concurrent tortfeasor is statute barred. The Court concludes that a claim for contribution and indemnity, whether in tort or otherwise, has a two-year limitation period that runs from the date when the person who seeks contribution and indemnity is served with the plaintiff's claim that gives rise to its claim over. The Court writes:

Issue on Appeal

· Can a cross-claim for contribution and indemnity exist when the person from whom contribution is sought is no longer liable in law to the plaintiff because the plaintiff's claim against that person is statute barred? Or is it sufficient that that person was potentially liable to the plaintiff at one time?

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[24] Reading the relevant sections together, a claim for contribution and indemnity, whether in tort or otherwise, now has a two-year limitation period that is presumed to run from the date when the person who seeks contribution and indemnity is served with the plaintiff's claim that gives rise to its claim over. This is the only limitation period in the Act that applies to claims for contribution and indemnity. The previous limitation period provision that applied where the plaintiff's limitation period against other concurrent tortfeasors had expired, s. 8 of the Negligence Act, is repealed by the Limitations Act, 2002.