Limitation Periods in BC: The Two-Year Rule and When the Clock Starts

If someone owes you money, damaged your property or caused you a loss, there is a deadline for taking them to court. Once it passes, the claim can be lost, however strong it might have been.

This article explains BC's Limitation Act in plain terms: the basic two-year rule, when the clock starts, the 15-year outer limit, and the claims that follow different rules, whether you are thinking about suing or have just been sued.

The basic rule: two years from discovery

BC's Limitation Act, in force since June 1, 2013, sets a single basic limitation period of two years for most civil claims. The two years does not necessarily run from the day something went wrong. It runs from the day the claim is "discovered," which can be later.

The deadline is for starting a court proceeding. Sending a demand letter or trading settlement offers is not the same thing, and if a proceeding is started after the limitation period has expired, the other side can rely on that as a defence, whatever the merits of the claim.

When does the clock start? The discovery rule

Under section 8 of the Act, a claim is discovered on the first day you knew, or reasonably ought to have known, all of the following:

• that injury, loss or damage had occurred
• that it was caused or contributed to by something the other person did or failed to do
• that a court proceeding would be an appropriate way to seek a remedy

The words "reasonably ought to have known" matter. The test looks at what you should have figured out, not only what you actually knew, so waiting for complete certainty can be risky. The Province's own guide to the Act notes that courts have considerable discretion in applying the discovery test, which is one reason the start date can be hard to pin down.

Example: a buyer notices water staining a few months after moving into a home, but only later learns what caused it and who may be responsible. When the two years began depends on what the buyer knew, or reasonably should have known, at each stage. That is exactly the kind of question to get advice on early, not in the last few weeks.

The 15-year ultimate limit

Discovery can push the start date later, but not forever. Section 21 sets an ultimate limitation period of 15 years, generally running from the day the act or omission the claim is based on took place. Once it expires, the claim is generally barred even if you only just found out about it.

The Act sets special starting points for some types of claims, and the ultimate period can be suspended where the other side wilfully concealed the claim or wilfully misled you about it.

Children and people under a disability

The basic limitation period does not run while a person is a minor, which in BC means under 19. For a child's claim, the two years generally starts no earlier than the child's 19th birthday. The basic period also does not run while a person is under a disability.

There is an exception: the Act has a "notice to proceed" process that can start the clock earlier for a minor or a person under a disability. A parent or family member dealing with a child's injury or loss should not assume there are years to spare.

Claims that follow different rules

The two-year rule is a default. Where another law sets its own limitation period, that more specific rule applies instead, and some claims fall outside the Act altogether. A few examples:

• Family property and spousal support. Under the Family Law Act, a spouse must start a claim to divide property, family debt or a pension, or for spousal support, within two years after a divorce judgment (for married spouses) or after separating (for unmarried spouses in a marriage-like relationship). Our article on common-law separation and the two-year rule explains this in more detail.
• Challenging a will. A claim to vary a will has its own, much shorter deadline under BC's estates legislation. See our article on contesting a will in BC.
• Enforcing a judgment. A proceeding to enforce a judgment for the payment of money or the return of personal property has a 10-year limitation period.
• No limitation period. Certain claims, including claims relating to sexual misconduct and sexual assault, are not subject to a limitation period under the Act.
• Older events. The Act came into force on June 1, 2013. Claims based on events before then may be governed by transition rules that look back to the former legislation.

In some situations, a written acknowledgement of liability or a payment by the other side can restart the clock. These rules are technical, so don't rely on them without advice.

Suing or being sued: why acting early matters

Limitation periods matter on both sides of a dispute. If you may have a claim, you need time to gather documents, get advice, decide which forum is right (the Civil Resolution Tribunal, Small Claims Court or the Supreme Court, as our guide on where your BC dispute belongs explains), and start the proceeding before the deadline. If you have been sued, the timing of the events may give you a defence, and any related claim of your own has timing rules to consider too.

Whichever side you are on, a few habits help:

• Write down the key dates: when the problem happened, when you first noticed it, and when you learned who might be responsible.
• Keep the evidence: contracts, emails, texts, photos, invoices and inspection reports.
• Don't let negotiations run out the clock. Talks can continue after a proceeding has been started to protect your position.
• Get advice well before the two years is up, especially if the discovery date is uncertain.

Not sure when your clock started? Get advice before the deadline passes

Our litigation lawyers can review your dates and documents, explain which limitation period is likely to apply to your situation, and start a court proceeding to protect your claim where that is needed.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.