Court of Appeal addresses two issues: the interpretation of s. 12 of the Limitations Act in the context of a bankrupt company, and whether an appeal of an underlying judgment tolls the limitation period

In Ridel v Goldberg, 2019 ONCA 636, the Court of Appeal for Ontario considered whether a judgment creditor was statute-barred from pursuing a claim for contribution and indemnity against the principal of a judgment debtor company. On April 17, 2013, the appellants received a favourable judgment against a registered investment dealer company for negligence, breach of contract and breach of fiduciary duty (the “2013 Judgment”), which was upheld on appeal a year later. On October 25, 2016, following the bankruptcy of the company, the judgment creditor received authorization from the trustee-in-bankruptcy pursuant to section 38 of the Bankruptcy and Insolvency Act to pursue the claim for contribution and indemnity against the principal of the company, Goldberg.

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Indcondo Building Corp. v. Sloan, 2010 ONCA 890 (discoverability in a fraudulent conveyance action brought by a creditor)

Indcondo Building Corp. v. Sloan, 2010 ONCA 890, involved the interplay between the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 (“BIA”) and the Limitations Act, 2002, S.O. 2002, c. 24, in a fraudulent conveyance action brought by a creditor, Indcondo, pursuant to a section 38 order under the BIA.  Section 38 provides a mechanism for creditors to proceed with an action when a trustee refuses or fails to act.  The issue was whether the discoverability principle under sections 5 and 12 of the Limitations Act is based on the discoverability of the trustee or on the discoverability of the creditor.

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