The Limitation of Actions Act

Executive Summary

The law of limitations prevents a litigant with an otherwise viable claim from pursuing that claim in the courts after a certain period of time has passed. This area of the law has always been purely statutory, from its origins in England in the 16th century. Canada inherited the English statutes of limitations, but different provinces have adapted them in different ways over the years – and typically at a glacial pace. There have been efforts over the years to modernize and to impose some uniformity on these various regimes, but none have been conspicuously successful.

In recent years, however, limitations legislation based on some radically different principles has been adopted by the Legislatures of Alberta, Ontario, and Saskatchewan, and introduced into the Legislature of New Brunswick. This legislation, based ultimately on work done by the Alberta Law Reform Institute in the late 1980s, has the potential to bring a great deal more clarity and fairness to an area of the law that has too often been characterized by obscurity and irrationality. It is time for Manitoba to consider adopting limitations legislation based on similar principles.

The Limitation of Actions Act was originally enacted in 1931. Although amended three times since then (in 1967, 1980, and 2002) it is fundamentally based on an amalgam of limitations provisions that originated in England centuries ago. In other words, it is highly dated, and it is showing its age. The Act badly requires modernization, and in this report the Commission has identified what it sees as the primary areas requiring modernization, as well as the best ways of accomplishing that goal.

In light of the work that has been done in recent years in other Canadian jurisdictions, the Commission sees no need to reinvent this wheel. For the most part, in this report we have described the structure of the “modern” limitations regimes found in other jurisdictions, and analyzed whether they are suitable for Manitoba and how, if at all, they ought to be adapted for Manitoba’s conditions.

The most dramatic change the Commission is recommending is the abolition of the various categories of claims set out in the current Act, and their replacement with a single, basic two year limitation applicable to all claims unless they are otherwise dealt with. This two year limitation would begin running when the existence of a claim was discovered or discoverable, instead of when the cause of action arose. This would provide ample time for a claimant to investigate the option of litigation. In order to serve the repose goal of limitations legislation, the new Act would also provide for a 15 year ultimate limitation, running from the date on which the act or omission on which the claim is based occurred.  After this, no claim could be brought, regardless of discoverability.

There are, of course, exceptions to these basic rules, but the Commission has attempted to keep those to a minimum. Exceptions would include, by way of example, claims arising out of sexual assault or domestic abuse, claims based on constitutionally protected Aboriginal or treaty rights, actions seeking purely declaratory relief, and proceedings to recover fines or taxes owing to the Crown.

The Commission seeks comments on all aspects of this consultation report, and, in particular, in relation to the abolition of special limitations provisions applicable to real property claims.

The Commission has appended a draft Act, which we consider could form the basis of a new limitations regime in Manitoba. It is based closely on the Uniform Act proposed by the Uniform Law Conference of Canada, which in turn is based on the Alberta and Ontario legislation, and incorporates the best of the various amendments adopted along the way. The Commission is hopeful that a new limitations regime, based on this draft legislation, could provide a more sensible and reliable 21st century framework to govern civil litigation in the province.

Draft Report,
June, 2009