Extension and Suspension

Extension of Limitation Period by Acknowledging Liability

A limitation period can be extended by the defendant acknowledging liability. This is important to remember. If you are worried you might have missed a limitation period, think if the person you wanted to sue ever admitted they owed you something. If you are worried about being sued, you need to know the potential consequence of admitting you owe something.

The rule is set out in s. 24 of the Limitation Act. The rule is that

If:

1. A limitation period has not yet expired or
2. The defendant acknowledges not only that a claim might be made, but that they have some liability (that is, agrees that they are at least somewhat fault and legally obliged to pay something)

Then the limitation periods will be treated as if they started to run on the day this acknowledgment was made.

This effectively allows parties who can agree that something must be paid, but disagree on what, to try to settle the claim without having to run to Court to file.