INNOVATION May-June 2012

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On April 16, 2012, the British Columbia government introduced Bill 34, the proposed new Limitation Act , which covers breach of contract, wrongful dismissal, personal injury, defamation and other civil actions. On April 26, the Limitation Act passed its third reading in the Legislature, which means debate is concluded and the text of the act is now finalized. The next step is for it to be given Royal Assent by the Lieutenant Governor, at which point it will become law. It is expected this will take place later this month. We understand government’s plan is to bring the new act into force early next year to allow stakeholders to be educated about the new rules and for a smooth transition. By far, the most notable feature of Bill 34 is the reduction of the ultimate limitation period for civil actions from 30 years to 15 years. The ultimate limitation period is the time in which claims can be brought before the courts against professionals for damages resulting from an error or omission in their work. While not as large a reduction as the 10 years advocated by APEGBC, the proposed change to a 15-year ultimate limitation period would bring British Columbia in line with most other Canadian provinces and address the concerns expressed by many stakeholders on the issue. Bill 34 also brings significant changes to other existing limitations periods, simplifying the time limit for filing a civil suit in BC. With some exceptions, the two-, six- and 10-year limitations that currently apply to certain types of claims are replaced by a basic two-year limitation from the date a claim is Reduction of Ultimate Limitation Period a Significant Step for APEGBC Professionals

recommended a reduction of the ultimate limitation period from the current 30 years to 10 years. More recently, in response to the White Paper issued by the Provincial

Government in September 2010, APEGBC reaffirmed its support for a 10-year limitation period.

“APEGBC supports the government passing changes to modernize the Limitation Act . These amendments will allow us to more effectively regulate the practices of professional engineering and geoscience in BC and protect the public interest.” says Jeff Holm PEng FEC, APEGBC President. When given Royal Assent, the legislation will repeal the existing act. Since the reforms will not be retroactive, a transition clause will ensure that people currently involved in legal disputes can rely on existing laws and legal advice that pre-dates the new law. Given the far-reaching consequences of Bill 34, APEGBC recommends that its members and licensees seek the appropriate legal advice on the related issues that could affect them such as contracts and litigation matters. v

discovered. An individual would not be able to litigate a claim after the earlier of either two years after a claim was discovered or 15 years after the date of the event occasioning the claim. Additionally, the new Limitation Act provides greater clarity on when a claim is deemed to be “discovered.” These changes are the result of significant consultation with the public, consumer groups and business, legal and local government representatives, and they will make BC’s law consistent with reforms in Alberta, Saskatchewan, Ontario and New Brunswick. In a March 2007 written response to a government green paper, APEGBC along with the Architectural Institute of British Columbia, the Consulting Engineers of British Columbia (now the Association of Consulting Engineering Companies British Columbia) and the Institute of Chartered Accountants of British Columbia strongly supported the efforts of the government in lowering the ultimate limitation period and

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JACK FOURNIER B.Sc (Geology) CFP® FMA

Investment Advisors DWM Securities Inc.

KIAN GHANEI B.Comm (Finance) CFP®

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prismfinancialadvisors@dundeewealth.com (604) 669-1143

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