November 28, 2024
We have written several articles on the dangers of “sleeping on your rights” and missing a limitation period- the time limit set by law to sue.
THE ISSUE
In order to protect yourself, you need to know what time limit applies. The standard and most common limit is under the Limitations Act, 2002 which sets a basic limit of two years. There are, however, many exceptions.
Two of these are found in the Trustee Act and the Real Property Limitations Act.
The Trustee Act sets its own two-year limit on suing an estate trustee (executor or administrator), which is by its wording more restrictive than the two-year limit in the Limitations Act.
The RPLA however applies to claims for land and allows a ten-year limit.
What about a claim against the estate for an equitable or constructive trust affecting land?
Claims for constructive trusts often arise in situations of family breakdown, and caution must be taken to address these claims promptly. .
But which time limit applies?
THE CASE
The Ontario Court of Appeal addresses this question in Ingram v. Kulynych Estate.
The Court considers the need to administer estates in a prompt fashion as the reason underlying the limit in the Trustee Act. They noted that the 2002 revisions to the Limitations Act allowed the “standard” time limits to apply to certain trusts. At that time, the Limitations Act allowed six years to start most claims, and ten years to sue for the recovery of lands.
The Court of Appeal had not considered whether a claim of constructive trust was a claim to recover land.
In Ingram, the claim is classified as a claim against the estate trustee, not a claim to recover land.
Where one law creates a specific time limit (as in the Trustee Act) and another (such as the RPLA) creates a general time limit, the specific time limit takes precedence.
A claim under an express trust, as opposed to a constructive trust, is still governed by the RPLA because that law contains a specific provision related to express trusts.
TAKEAWAYS
- The law of time limits is not simple.
- Missing a time limit can be fatal to your claim.
- Getting prompt legal advice to protect your rights is a sound investment and may increase your recovery in the long run.
WHAT WEILERS LLP CAN DO TO HELP YOU
If you have suffered a loss, even if you are not sure about whether to bring a claim, consulting the knowledgeable litigation lawyers at Weilers LLP can help you sleep at night, rather than sleep on your rights. Give us a call and see if we are the right lawyers for you.