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Arbitration Preconditions can Suspend Commencement of a Limitation Period, May 2018

May-19-2018

Lawyer Brad Halfin, Tamryn Jacobson
Area Construction and Infrastucture

Summary

Article originially published in Canadian College of Construction Lawyers' Legal Update, May 2018

Excerpt from "Arbitration Preconditions can Suspend Commencement of a Limitation Period":

In PQ Licensing S.A. v. LPQ Central Canada Inc., the Ontario Court of Appeal recently upheld an arbitrator’s decision that the two-year limitation period commenced on the date the mediation requirement in the parties’ contract was deemed to be fulfilled. In the result, the claim was not statute-barred by the Limitations Act, 2002 (the “Act”), despite the claimant initiating arbitration four years after the claim was otherwise discoverable. Parties negotiating commercial agreements that include arbitration preconditions in dispute resolution provisions should be mindful of this decision and consider clarifying their intentions about the staging and timing of steps leading to arbitration.

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