Legal Blog

Rolling Limitation

Beccarea v. CNR 2018 Ont SCJ

A disability insurer refused an insurance claim for monthly benefits made by the survivor of a spouse. The survivor made claims in 2003, 2005, and 2010 and was rejected each time. The survivor commenced an action in 2012. The survivor claimed that her cause of action arose each time a benefit became due so that it could claim for 2 years previous and for subsequent monthly payments. In effect, the survivor stated that there were rolling limitation periods, each one being set when a new monthly payment should have been paid. The court noted that rolling limitation periods arise when the issue is whether specific payments being claimed have been made. It does not arise where the issue is settled at the start and the monthly payments depend upon the issue. Accordingly, once the claim was rejected the first time, the survivor had the right to sue and that right did not roll each time a monthly payment was due. Contrast this to a promissory note, with periodic payments, that does not have an acceleration provision. A cause of action arises each time a periodic payment is not made.

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