The Limitations Act, 2002, came into force on January 1, 2004. Under the Act, the former general limitation period of 6 years was repealed subject to the transition provisions contained in section 24. The applicability of the transition provisions was considered by the Ontario Court of Appeal in Hare v. Hare (2006), 83 OR (3d) 766, a 2-1 decision related to demand obligations.
Application of the Transition Provisions
In order for the transition provisions in section 24 to apply, section 24(2) provides that two conditions must be met. First the claim must be based on an act or omission that took place before January 1, 2004. Second, no proceeding must have been commenced in respect of the claim before that date.
Expiry of Former Limitation Period Before January 1, 2004
Under section 24(3), if the former limitation period (i.e.