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Limitation Acknowledgment

Posted on July 13, 2021 | Posted in Civil Litigation, Collections, Five Liners

1475182 Ontario Inc. o/a Edges Contracting v. Ghotbi 2021 Ont SCJ

Section 13 of the Limitations Act extends the limitation period if the debtor has acknowledged the debt in writing signed by the debtor or its agent and applies even if the debtor does not promise to pay the balance owing on a liquidated sum. The debtor acknowledged the debt by way of a text message, but indicated he may be setting off expenses he incurred. The judge held that a text message was a digital signature that, in this case, was authentic and that a traditional signature was not necessary. He also noted that it was sufficient for a debtor to acknowledge the debt, even though disputing the precise amount.

Kirloskar Technologies (P) Ltd. v. Best Theratronics Ltd. 2021 Ont SCJ

Same scenario as in Edges Contracting. The debtor acknowledged the debt by ordinary email, which was deemed sufficient to be an acknowledgment in writing signed by the debtor.

 

Jonathan Speigel

 

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.

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