September 30, 2024 is an important day for litigation in Manitoba. It marks the end of the transitional period from the old Limitation of Actions Act, C.C.S.M. c. L150 (the “Old Act”) to the new Limitations Act, S.M. 2021, c. 44 (the “New Act”) which replaced the Old Act on September 30, 2022. Here is what you need to know as the day approaches.
Bill 51: A New Limitations Act in Manitoba
On May 20, 2021, Bill 51 received royal assent, bringing into force the New Act and replacing the Old Act which governed limitation periods in Manitoba. The New Act created a new framework for limitation periods in Manitoba based on discoverability. For example, the Old Act contained a range of limitation periods from one to 10 years from when a cause of action arose. With a few exceptions, the New Act replaced the previous limitation periods governing all claims with a two-year basic limitation period from the date the claim is discovered. The changes in the New Act bring Manitoba’s limitations regime more in line with the other provinces.
For more information on Bill 51, see our previous blog from June 2021.
The New Limitations Regime – Discoverability
One of the major changes under the New Act is the implementation of a “basic limitation period.” Unless an exception applies, all proceedings respecting civil claims are subject to the basic limitation period of two years from the date the claim was discovered. What does it mean for a claim to be discovered? In many cases, the date of discovery will also be the date that the injury, loss or damage occurred. However, where the date of discovery is not as clear, Section 7 of the New Act provides that a claim is discovered on the day that the claimant first knew or ought to have known all of the following:
- That injury, loss or damage has occurred;
- That the injury, loss or damage was caused by or contributed to by an act or omission;
- That the act or omission was that of a person against whom the claim is or may be made; and
- That, given the nature and circumstances of the injury, loss or damage, a proceeding would be an appropriate means to seek to remedy it.
While Section 7 of the New Act uses similar language to that found in limitation period legislation in other provinces, the wording is not identical. Therefore, decisions from other provinces which have interpreted when a claim is discovered may, in some cases, be of limited or no use in Manitoba.
Another change under the New Act is the shortening of the “ultimate limitation period.” Under the Old Act, most claims were subject to an ultimate limitation period of 30 years after the occurrence of the acts or omissions that gave rise to the cause of action. Under the New Act, most claims are now subject to an ultimate limitation period of 15 years from the date the act or omission on which the claim is based took place, even if the “basic limitation period” has not expired. There are, however, a few exceptions. For example, Section 10(2) of the New Act provides that Aboriginal claims have an ultimate limitation period of 30 years, while Section 18 of the New Act contains a list of claims that have no limitation period (for example, claims relating to assaults of a sexual nature). As well, the New Act provides that the “ultimate limitation period” cannot be extended by agreement.
The end of the transitional period: September 30, 2024
A transitional period has been in place since the New Act first took effect on September 30, 2022. This transitional period applied to claims discovered before September 30, 2022. If a claim was discovered before September 30, 2022, a claimant must commence a proceeding before the earlier of:
- September 30, 2024; and
- The day the limitation period under the Old Act expires or would expire.
Therefore, September 30, 2024 is a crucial date for litigation in Manitoba. It marks the end of the transitional period, after which the New Act will be the governing legislation for all claims. It also marks the last day that most civil claims discovered before September 30, 2022 can be filed, assuming the limitation period contained under the Old Act has not already expired (and assuming the claim does not fall under Section 18 of the New Act as being a claim with no limitation period).
If you have a potential claim based on events which took place before September 30, 2022, it is important to seek legal advice as quickly as possible to ensure you do not miss the deadline to file it. It is not always clear when a claim was “discovered”, so it is important to provide all of the information you have regarding the events giving rise to the claim to your lawyer as early as possible so that a proper assessment can be made.
Please contact a member of our litigation team if you have a potential claim you would like to discuss, or have questions about the new limitation period legislation in Manitoba.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.