Background
In 1986, the Township of McMurrich Monteith (the “Township”) authorized a building permit for a residential construction project. During the construction phase, several deficiencies were identified and an "Order to Comply" was issued and subsequently updated via a handwritten note stating, “all complied with.” In 1988, the Township issued a treasurer’s certificate to the new property owners, confirming there were no outstanding work orders. Over three decades later, in October 2021, the property was purchased by the plaintiffs who, upon discovering construction defects, initiated legal action against the Township and others, in February 2022.
The Township moved for summary judgment, arguing the plaintiffs claim was barred by the 15-year ultimate limitation period under section 15(2) of the Limitations Act, 2002, S.O. 2002 c. 24, Sched. B (the “Act”), noting the initial permit issuance in 1986. The motion judge dismissed the Township’s motion, determining that the Township's failure to adequately supervise and inspect the project amounted to ongoing and continuous negligence. This decision was predicated on the motion judge’s finding that the building permit remained 'open' due to incomplete closing formalities and that the Township had a “duty to monitor” open construction files. Accordingly, the ultimate limitation period was found to have not yet expired per section 15(6)(a) of the Act.