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Saved by Absurdity: Contractual vs Statutory Limitation Periods in Standard Form Contracts

October 28, 2025 | Saif Hashmi, Associate – Glaholt Bowles LLP

Introduction

The Ontario Court of Appeal decision in Ontario (Transportation) v. J & P Leveque Bros. Haulage Ltd., 2025 ONCA 573, provides critical guidance on the interpretation of dispute resolution provisions in standard form government construction contracts and the limitation periods pertaining to same. The case centers on whether a contractual limitation period can bar litigation when the prerequisite steps, namely, a referee decision, are not completed within that period. The decision clarifies the interplay between contractual limitation clauses and Ontario’s Limitations Act, 2002, and reinforces the principle that commercial contracts must be interpreted in a manner that avoids commercial absurdity.

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