Case information

Limitation of actions — Contracts — Breach — Applicant partner’s employment terminated and compulsory retirement provision in partnership agreement triggered — Partner alleging breach of post-retirement compensation agreement — Motion for summary judgment dismissing action granted — Whether party has right to affirm where counterparty repudiates contract providing for continuous or successive obligations — Whether Court of Appeal created new exception to common law of contracts, under which a party is deprived of right to affirm a periodic payment contract and insist on future compliance in response to an anticipatory repudiation — Whether Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. bars claim for declaratory relief.

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The applicant’s employment was terminated and a compulsory retirement provision in his partnership agreement was triggered, forcing him into retirement. A dispute arose between the parties over the correct amount of post-retirement payments. The applicants sued the respondents, alleging that they were in breach of the post-retirement compensation agreement.

The motion judge granted summary judgment against the applicants after finding that the claims were statute barred under the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. The Court of Appeal dismissed his appeal.