In most Canadian provinces and territories, there is a basic two-year limitation period. This means that you have two years to start your claim against a defendant or else you will automatically forfeit your right to make that claim. So, yes, it matters a lot.
The two year period is usually calculated from the date that you discovered or reasonably should have discovered that you had some type of claim to sue for. For example, your invoice isn’t paid within 30 days? Your limitation period starts to run on the 31st day. Someone didn’t do what they agreed to do by a certain date? Your limitation period starts to run on that day right after.
This two-year rule applies to many common legal disputes, including breach of contract, unpaid debts and negligence claims. But, keep in mind that it’s important to double check the limitation period for your Province and for your dispute. Some claims have shorter deadlines, such as certain claims involving municipalities or landlord/tenant issues. Other matters may involve longer or special limitation periods, depending on the nature of the dispute. The contract at issue may also offer additional terms about the limitation period.
If you are unsure how limitation periods apply to your situation, it may be helpful to seek guidance early. Waiting too long, even by a short amount of time, can mean losing your right to bring a claim altogether. If you need direction, you can book a free legal guidance session to better understand your options.
Understanding limitation periods is often one of the most important first steps in protecting your legal rights.
Disclaimer: This article provides general legal information only and does not constitute legal advice. Laws vary by province and territory, and limitation periods depend heavily on the specific facts of each case. Reading this content does not create a lawyer-client relationship. You should not act or rely on this information without first obtaining independent legal advice tailored to your particular circumstances.