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Legal Blog:
Apr
01
2008
Amend Pleadings
Since we are on a limitations theme, we felt that we should briefly discuss the interplay between Rule 26.01 regarding the amendment of pleadings and the Limitations Act. Rule 26.01 states that if a party requests to amend its pleadings, the court shall allow that request unless there is prejudice to the opposing party that cannot be compensated by an adjournment or costs. What happens when an amendment results in a new cause of action? Normally nothing. What happens when a new cause of action is being requested after the limitation period has expired? Does the mandatory nature of Rule 26.01 take precedence over the Limitations Act? This was the subject of the dispute in Frohlick v. Pinkerton Canada Ltd. [2008] O.J. No. 17 (C.A.)
Continue Reading >Apr
01
2008
Special
The basic limitation period is now two years. The limitation period for the assessment of a solicitor’s account is 12 months, subject to extension for special circumstances. What happens when a client attempts to assess a solicitor’s account after two years? Does the court still have to review special circumstances or is the client out-of-luck? Does the Limitations Act, 2002 trump the Solicitors Act? These questions were answered in Guillemette v. Doucet [2007] O.J. No. 4172 (C.A.).
Continue Reading >Apr
01
2008
Rate
The Courts of Justice Act sets out both pre-judgment and post-judgment interest rates. Pre-judgment interest is interest that will be added to an award up to the date of judgment. Post-judgment interest is, you guessed it, the interest that is awarded on the entire judgment starting from the date of the judgment. The rates set out in the Act are set quarterly and are based on the bank rate. These rates are lower than the rates one would normally see in any ordinary loan from a financial institution and significantly lower than the rates charged for unpaid credit card balances.
Continue Reading >Apr
01
2008
Arrogant
Arrogant is not a word that a financial institution wishes to read in a judgment commenting upon its behaviour. Neither does it wish to be described as high-handed. Unfortunately, that is exactly what we read in Canadian Imperial Bank of Commerce v. McDonald, a 2007 Ontario Superior Court of Justice decision.
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