Case information

Civil procedure — Summary judgment — Limitation of Actions — Ultimate limitation periods — Continuous act or omission — Statutory interpretation — Torts — Negligence — Duty of care — Municipality — What species of claim can and cannot constitute a “continuous act or omission” for the purpose of the Limitations Act, 2002? — Do Canadian municipalities owe any “duty of care”, “duty to monitor”, or “obligation to inspect” a construction project in circumstances where deficiencies are noted and no final inspection is carried out? — Limitations Act, 2002, S.O. 2002 c. 24, Sch. B., s. 15(2), (6).

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The applicants allege that the respondent, the Corporation of the Township of McMurrich Monteith (“township”), failed to properly supervise the construction of a dwelling that was built on a residential property in the township between 1986 and 1987. The applicants purchased the property in October 2021 and shortly thereafter discovered significant defects in the dwelling’s foundation. In February 2022, the applicants commenced an action in the Ontario Superior Court of Justice against the township, arguing that these defects had resulted from the township’s negligence in supervising the dwelling’s construction and failing to conduct further inspections, among other things.

The township moved for summary judgment on the basis that it issued the building permit for the dwelling in 1986 and construction was completed in 1987. The township argued that any alleged negligence on its part occurred more than three decades ago and thus the applicants’ claim was barred by the ultimate limitation period in s. 15(2) of the Limitations Act, 2002, S.O. 2002 c. 24, Sched. B.

In the Ontario Superior Court of Justice, the motion judge dismissed the township’s motion for summary judgment, finding that the township’s negligence was ongoing and continuous and, therefore, the ultimate limitation period had not yet expired by virtue of s. 15(6)(a) of the Limitations Act, 2002. The Court of Appeal for Ontario unanimously allowed the township’s appeal and set aside the motion judge’s order.