A limitation period is the deadline by which a claimant must initiate proceedings before the court.
For many, but not all, claims in Ontario, the limitation period is two years from the date of the injury or loss. For example, if you sustained a physical injury in a car accident on January 7, 2022, your limitation period would expire no later than January 7, 2024.
Sometimes, potential litigants dismiss their injuries as unlikely to result in high damages or believe the stress of litigation isn’t worth it. With time, they may reconsider and decide to contact a lawyer long after the accident. This can result in very short windows in which to retain counsel and have them draft and finalize a Statement of Claim. A Statement of Claim is the document that, once issued by the court, initiates a lawsuit.
One way to ensure your lawyer has enough time to produce a strategic and complete Statement of Claim within the limitation period is to first file a Notice of Action. A Notice of Action outlines the basic details of the losses sustained and the dispute between the parties. You then have 30 additional days from the date of its issuance by the Court to file a more detailed Statement of Claim.
A Notice of Action is also a useful strategy for extending the timeline for settlement discussions in cases where the cost of litigation may outweigh the value of the damages, and an out-of-court settlement is preferred.
In short, a Notice of Action helps claimants avoid missing their opportunity to pursue legal action in court and allows your lawyer to develop the best strategy for your case.
