Skip to content

Brought to you by

Dentons logo

Limitations Law Blog

Updates on key developments on laws involving limitation periods in Ontario.

open menu close menu

Limitations Law Blog

  • Home
  • About us

Emails can satisfy the acknowledgement requirement and Forbearance can postpone discoverability of a claim

By Christina Porretta
August 11, 2019
  • Acknowledgment
  • Discoverability
Share on Facebook Share on Twitter Share via email Share on LinkedIn

In University Plumbing v Solstice Two Limited, 2019 ONSC 4276, the Superior Court addressed two questions: (i) whether an email can satisfy the acknowledgement requirement under s. 13(1) of the Limitations Act; and (ii) whether a promise to forbear commencing an action affects discoverability of a claim under s. 5(1)(a)(iv) of the Act. The answer to both questions is yes.

The plaintiff contractor alleged that the defendant project owner owed it money and was in breach of trust under the Construction Lien Act. The plaintiff commenced the action in 2015. The defendant argued that the cause of action accrued on August 30, 2012, the date the invoice was issued and that the action was statute-barred. However, a series of emails were exchanged between the parties in 2013 and 2014 whereby the defendant acknowledged the debt owed to the plaintiff. The emails contained the defendant’s electronic signature.

Acknowledging debt by email can satisfy the requirement under section 13

Section 13(1) of the Act provides that “if a person acknowledges liability in respect of a claim for payment of a liquidated sum…the act or omission on which the claim is based shall be deemed to have taken place on the day on which the acknowledgment was made.”

The defendant argued that the email correspondence between the parties did not satisfy the acknowledgement requirement under s. 13(1) of the Act because the “written acknowledgements were digitally transmitted and were not signed by hand.” The court disagreed and held that emails can satisfy the acknowledgement requirement under s. 13(1), provided that the communication between the parties is clear. The court noted that, in this case, the debt was not a contentious issue since the emails contained the defendant’s electronic signature and were intended by the parties to form “unequivocal” acknowledgements of the debt.

Forbearance from commencing an action can affect the discoverability of a claim

The rule for discoverability, under s. 5(1)(a)(iv) of the Act requires a need to know that “a [court] proceeding would be an appropriate means to seek [a] remedy.” The plaintiff claimed that the defendant’s promises to repay the debt induced the plaintiff to forbear from commencing the action, and it was only when the defendants advised on June 26, 2015, that they were ceasing to try to satisfy the debt, that it became appropriate for the plaintiff to commence litigation. The court agreed and held that had the plaintiff commenced the action before the defendant reneged on its promise, the plaintiff’s action would not have been an appropriate means to seek a remedy under s. 5(1)(a)(iv) of the Act. Instead, the court would have interpreted the plaintiff’s act as a “[rush] to litigation.”

Co-authored by Nour Chehab Eddine

Share on Facebook Share on Twitter Share via email Share on LinkedIn
Subscribe and stay updated
Receive our latest blog posts by email.
Stay in Touch
Christina Porretta

About Christina Porretta

All posts

RELATED POSTS

  • Discoverability

A Notice of Objection filed in response to a passing of accounts application does not constitute a “proceeding” or a “claim” under the Limitations Act, 2002

By Christina Porretta
  • Discoverability

Commencing a claim in the wrong forum does not suspend the running of a limitation period

By Christina Porretta
  • Discoverability

Limitation Periods and Singular Discrete Oppressive Acts

By Ara Basmadjian

About Dentons

Dentons is the world’s largest law firm, delivering quality and value to clients around the globe. Dentons is a leader on the Acritas Global Elite Brand Index, a BTI Client Service 30 Award winner and recognized by prominent business and legal publications for its innovations in client service, including founding Nextlaw Labs and the Nextlaw Global Referral Network. Dentons’ polycentric approach and world-class talent challenge the status quo to advance client interests in the communities in which we live and work. www.dentons.com.

Dentons digital

Twitter

Categories

  • Acknowledgment
  • Adding a Party
  • Amending Pleadings
  • Attempted Resolution
  • Contribution and Indemnity
  • COVID-19
  • Demand Obligations
  • Discoverability
  • Enforcement of Foreign Judgments
  • Limitation Periods contained in "Other Acts"
  • Limitation Periods in Federal Court
  • Misnomer
  • Motions to Strike
  • Notable cases in other provinces
  • Special Circumstances
  • Statutory Variation of Time Limits
  • Successors
  • Tolling/Varying Agreements
  • Transitional Provisions
  • Ultimate Limitation Periods

Subscribe and stay updated

Receive our latest blog posts by email.

Stay in Touch

Dentons logo

© 2021 Dentons

  • Legal notices
  • Privacy policy
  • Terms of use
  • Cookies on this site