Ontario Statutes of Limitations Explained

Statute of Limitations in Ontario Explained

Date: June 9, 2025

When it comes to legal disputes, time matters. Even if you have a strong case, waiting too long to take action can cause you to lose your right to sue. This is where the statute of limitations becomes critical.

In Ontario, the Ontario Limitations Act, 2002 sets clear deadlines for when most civil and commercial claims must be filed. Missing these deadlines can prevent your case from being heard, no matter how valid it may be.

This article explains how the statute of limitations works in Ontario, what the discoverability rule means, and why acting quickly is essential to protecting your rights.

What Is the Statute of Limitations?

The statute of limitations refers to the legal time limit for starting a claim in court. If you bring a claim after this deadline has passed, it may be dismissed as “statute-barred”.

The law is designed to ensure fairness by encouraging timely action and preventing disputes from being raised years after evidence has been lost or memories have faded.

The General Two-Year Limitation Period

Under the Ontario Limitations Act, 2002, most civil and commercial claims must be started within two years of when the claim was discovered.

This applies to disputes such as:

Section 4 of the Act states:

“Unless this Act provides otherwise, a proceeding shall not be commenced in respect of a claim after the second anniversary of the day on which the claim was discovered.”

But what does “discovered” actually mean?

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The Discoverability Rule

The statute of limitations in Ontario does not always begin on the date the wrongful act happened. Instead, the limitation period starts when the person knew, or reasonably should have known, that:

  • They suffered a loss, and
  • The loss was caused by another person or business.

This “discoverability rule” is especially important in business disputes, where harm is not always immediate. For example:

  • A shareholder might only uncover financial misconduct months or years later when reviewing company records.
  • A party to a contract may only realize a breach after its financial impact becomes clear.

Misjudging when your limitation period starts can be costly—if you file too late, your claim may be dismissed.

Exceptions and Special Limitation Periods

While the two-year period is the general rule, there are important exceptions under the Ontario Limitations Act and other statutes. For example:

  • Fraud or concealment may suspend the limitation period until the fraud is discovered.
  • Breach of trust claims may have longer timelines.
  • Claims involving real estate, secured property, or government entities may have different rules.
  • Some contracts may include limitation clauses, but these must comply with the law to be enforceable.

Every situation is unique, and the applicable limitation period depends on the facts of your case.

What Happens If You Miss the Deadline?

If a claim is filed after the limitation period has expired, the defendant can argue that it is statute-barred. If the court agrees, your case may be struck out before trial, regardless of its merits.

Even ongoing settlement discussions do not pause the clock unless a written tolling agreement is in place. This is why delaying legal action can be extremely risky.

Why Acting Early Matters

The longer you wait to start a claim, the higher the risks:

  • Witnesses may become unavailable
  • Evidence may be lost or destroyed
  • Your claim may be dismissed as out of time

Whether you are pursuing an unpaid debt, enforcing a contract, or facing a threatened lawsuit, taking early steps ensures your rights are protected.

How a Lawyer Can Help

A litigation lawyer can assist with limitation period issues in several ways:

  • Determining the applicable deadline for your case
  • Calculating when the claim was discovered
  • Preserving evidence and drafting proper legal documents
  • Filing your claim before time runs out
  • Defending you against claims that may already be statute-barred

Even if you are unsure about moving forward, getting timely legal advice can prevent you from losing your right to act later.

In Summary

The statute of limitations in Ontario is strict and unforgiving. Under the Ontario Limitations Act, 2002, most civil claims must be filed within two years of discovery. Missing this window can result in your case being permanently barred.

If you are involved in a business or civil dispute, do not wait until it is too late. Acting early is the best way to protect your legal rights.

Need Legal Help With Limitation Periods?

Contact Achkar Law today. Our team of litigation lawyers helps businesses and individuals across Ontario navigate the statute of limitations and protect their rights.

 Call Toll-Free: 1-800-771-7882  | Email: [email protected]

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The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©

Practice Areas: Civil Litigation, Commercial Litigation, Contract Disputes, Shareholder Disputes, Corporate Debt Recovery, Real Estate Disputes