Difference between revisions of "Do You Have a Small Claim? (20:III)"
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{{REVIEWED LSLAP | date= | {{REVIEWED LSLAP | date= July 31, 2024}} | ||
{{LSLAP Manual TOC|expanded = smallclaims}} | {{LSLAP Manual TOC|expanded = smallclaims}} | ||
In order to have a legal claim, it must be | In order to have a legal claim, it must be recognized by the law. A frivolous claim is one that does not disclose a legal cause of action, is incapable of proof, or is otherwise bound to fail. A vexatious claim is one that is brought in order to annoy, frustrate, or antagonize the defendant. A claim may be both frivolous and vexatious. | ||
If a claim is frivolous or vexatious, the claimant will lose and may be penalized up to 10% of the amount of the claim or counterclaim (''Small Claims Rules'', BC Reg 261/93, 20(5) [SCR]). The penalty could be up to $8,750 on a $35,000 claim; it pays to research your cause of action and limit your claim to the proper amount. | |||
== A. Types of Claims & Remedies == | == A. Types of Claims & Remedies == | ||
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=== 1. Tort === | === 1. Tort === | ||
Torts are offences committed by one person against another. Examples include assault, battery, and negligence. Each tort has its own test and | Torts are offences committed by one person against another. Examples include assault, battery, and negligence. Each tort has its own test and defences. Tort law continues to evolve and a person planning to bring a claim in tort should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer. | ||
=== 2. Contract === | === 2. Contract === | ||
Contract law governs voluntary relationships between parties. It is a complicated and nuanced area of the law and a person planning to bring a claim in contract should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer. | Contract law governs voluntary relationships between parties. It is a complicated and nuanced area of the law and a person planning to bring a claim in contract law should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer. | ||
'''NOTE:''' Courts will generally not enforce illegal contracts or dishonest transactions (See ''[http://canlii.ca/t/1djfx Faraguna v Storoz]'', [1993] BCJ No. 2114). However, ''[http://canlii.ca/t/1gd53 Transport North American Express Inc. v New Solutions Financial Corp.]'', 2004 SCC 7 states that a court may enforce legal portions of a contract, thus effectively severing the illegal portion. A common example involves contracts purporting to charge interest rates prohibited under s 347 of the ''Criminal Code''. The court will not enforce a term in a contract purporting to charge such a rate. (However, section 347.1 exempts payday loans from criminal sanctions, if certain conditions are met; see [[Direct Sales, Future Performance, and Time Share Contracts (11:V)#G. Regulation of Payday Lenders and Criminal Rate of Interest | Section V.G: Regulation of Payday Lenders and Criminal Rate of Interest]] in Chapter | :'''NOTE:''' Courts will generally not enforce illegal contracts or dishonest transactions (See ''[http://canlii.ca/t/1djfx Faraguna v Storoz]'', [1993] BCJ No. 2114). However, ''[http://canlii.ca/t/1gd53 Transport North American Express Inc. v New Solutions Financial Corp.]'', 2004 SCC 7 states that a court may enforce legal portions of a contract, thus effectively severing the illegal portion. A common example involves contracts purporting to charge interest rates prohibited under s 347 of the ''Criminal Code''. The court will not enforce a term in a contract purporting to charge such a rate. (However, section 347.1 exempts payday loans from criminal sanctions, if certain conditions are met; see [[Direct Sales, Future Performance, and Time Share Contracts (11:V)#G. Regulation of Payday Lenders and Criminal Rate of Interest | Section V.G: Regulation of Payday Lenders and Criminal Rate of Interest]] in Chapter 11: Consumer Protection). | ||
=== 3. Equity === | === 3. Equity === | ||
The usual remedy for torts and breaches of contract is monetary damages. In circumstances where monetary damages are inadequate or where a legal remedy is improper in the circumstances, the court may grant other relief such as an injunction. The Small Claims Court, pursuant to s 2 of the ''Small Claims Act'' [SCA] (''Small Claims Act'', RSBC 1996, c 430 | The usual remedy for torts and breaches of contract is monetary damages. In circumstances where monetary damages are inadequate or where a legal remedy is improper in the circumstances, the court may grant other relief such as an injunction. The Small Claims Court, pursuant to s 2 of the ''Small Claims Act'' [SCA] (''Small Claims Act'', RSBC 1996, c 430), has a limited inherent jurisdiction to grant equitable remedies. The Civil Resolution Tribunal, pursuant to s 118 of the ''Civil Resolution Tribunal Act'' [CRTA] (''Civil Resolution Tribunal Act'', SBC 2012, c 25), has the same limited jurisdiction. A party seeking an equitable remedy such as an injunction should consult with a lawyer and will likely need to apply to the Supreme Court for relief. | ||
=== 4. Restitution === | === 4. Restitution === | ||
The law of restitution | The law of restitution applies to circumstances where a party has benefited, the other party has suffered a loss as a result, and there is no legal basis for the party to have benefited (''Nouhi v Pourtaghi'', 2022 BCSC 807). The type of claim commonly pursued for a restitution remedy is referred to as “unjust enrichment” and is a complicated and evolving area of the law. A party planning to attain a restitution remedy should consult a lawyer, research what must be proved to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer. | ||
=== 5. Statute === | === 5. Statute === | ||
Line 39: | Line 38: | ||
== B. Types of Damages == | == B. Types of Damages == | ||
Although the Small Claims Court has the jurisdiction to award $35,000, the monetary awards in most cases are significantly less (Small Claims Court Monetary Limit Regulation, BC Reg 179/2005). | Although the Small Claims Court has the jurisdiction to award $35,000, the monetary awards in most cases are significantly less (''Small Claims Court Monetary Limit Regulation'', BC Reg 179/2005). There must be a principled basis for an award of damages and it is helpful to separate a claim into the following types of damages. Ensuring that there is a legal basis for a claim is a critical step as there are penalties for proceeding through a trial in Small Claims Court on a claim that has no reasonable basis for success (''SCR'', s 20(5)). | ||
=== 1. General Damages === | === 1. General Damages === | ||
General damages are those that are not easy to quantify and for which a judge must assess the amount of money that, in the circumstances, will compensate for the loss. A common example of general damages is “pain and suffering”. The purpose of general damages is to compensate and not | General damages, also called non-pecuniary damages, are those that are not easy to quantify and for which a judge must assess the amount of money that, in the circumstances, will compensate for the loss. A common example of general damages is “pain and suffering”. The purpose of general damages is to compensate and not to punish; a party should not expect to profit or realize a windfall through an award of general damages. For both general and special damages, the principle of remoteness of damage relates to both tort and contract law cases. Defendants are generally only accountable for harm brought on by their wrongful acts or contractual breaches when that harm was reasonably foreseeable at the time of the conduct in question, or could have been reasonably contemplated to be a consequence of breaching the contractual term. A person planning to claim general damages should be ready to provide evidence of the loss and research the case law to determine how the courts have assessed damages in cases with similar losses and circumstances. Resources include CanLII.org, the courthouse library, and a practising lawyer. | ||
=== 2. Special Damages === | === 2. Special Damages === | ||
Special damages are | Special damages are generally quantifiable out-of-pocket expenses that must be specifically claimed and strictly proven (''SCR'', s 20(5)). For example, if a person has been put to expense and has receipts showing the amounts spent, these expenses would be classified as special damages. In a personal injury action, this could be medical bills, or in an action involving faulty equipment, repair bills could be classified as special damages. Each and every expense must be strictly proved with documents or other satisfactory evidence. In [https://www.canlii.org/en/bc/bcsc/doc/2013/2013bcsc581/2013bcsc581.html?searchUrlHash=AAAAAQAdUmVkbCB2LiBTZWxsaW4sIDIwMTMgQkNTQyA1ODEAAAAAAQ&resultIndex=1 ''Redl v. Sellin'', 2013 BCSC 581], the Court sets out the test with respect to a claimant’s claim for special damages. Generally speaking, claims for special damages are subject only to the standard of reasonableness. As with claims for the cost of future care (see [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc982/2011bcsc982.html?searchUrlHash=AAAAAQAeSnVyYXNraSB2LiBCZWVrLCAyMDExIEJDU0MgOTgyAAAAAAE&resultIndex=1 ''Juraski v. Beek'', 2011 BCSC 982]; ''Milina v. Bartsch'' (1985), 49 BCLR (2d) 33 (BCSC))], when a claimed expense has been incurred in relation to treatment, evidence of medical justification for the expense is a factor in determining reasonableness. | ||
=== 3. Nominal Damages === | === 3. Nominal Damages === | ||
Nominal damages are those where a wrong has been committed but there has been no, or insignificant, damages suffered as a result of the wrong. | Nominal damages are those where a wrong has been committed but there has been no, or insignificant, damages suffered as a result of the wrong. Certain torts, such as trespass, allow claims for nominal damages however there is little reward and much to be lost. A person who has suffered no damages yet still brings a claim may not recover the costs for bringing a claim that wastes the court’s and the parties’ time and money. Note that cost awards are limited in small claims cases (''SCR'', s 20(2)) and in Civil Resolution Tribunal cases, legal fees will rarely be awarded (''Civil Resolution Tribunal Rules'', Rule 9.4(3) [CRTR]). | ||
=== 4. Debt === | === 4. Debt === | ||
Debt is a remedy for breach of contract | Debt is a remedy for breach of contract; see [http://canlii.ca/t/5467 ''Busnex Business Exchange Ltd. v Canadian Medical Legacy Corp.'', 1999 BCCA 78]. The requirement for establishing a debt or ‘liquidated demand’ is that the sum of money is evident or able to be calculated by virtue of the contract. If the amount requires more investigation than mere calculation, the amount is not a debt but ‘damages’. | ||
=== 5. Liquidated Damages === | === 5. Liquidated Damages === | ||
Some contracts provide for a genuine pre-estimate of damages in the event of a breach and allow the non-breaching party to claim for that estimate without having to prove the amount they have actually lost. This amount can be recovered as a debt. If the amount of liquidated damages is not a genuine pre-estimate of damages or is manifestly inappropriate in the circumstances, a court may decline to award them. | Some contracts provide for a genuine pre-estimate of damages in the event of a breach and allow the non-breaching party to claim for that estimate without having to prove the amount they have actually lost. This amount can be recovered as a debt. If the amount of liquidated damages is not a genuine pre-estimate of damages or is manifestly inappropriate in the circumstances, a court may decline to award them. However, the CRT cannot relieve a penalty because it is not a “court” (''Law and Equity Act'', s 24(2)). | ||
=== 6. Statutory Damages === | === 6. Statutory Damages === | ||
Statutory damages are those that arise from a breach by the defendant of an obligation found in a statute. The statute and relevant case law | Statutory damages are those that arise from a breach by the defendant of an obligation found in a statute. The statute and relevant case law should be examined carefully to determine what damages, if any, may be claimed and the principles for assessing damages. Note, there are few statutory breaches that trigger statutory damages. | ||
=== 7. Aggravated Damages === | === 7. Aggravated Damages === | ||
Aggravated damages provide additional compensation where the wrongdoer’s actions have caused mental distress, injury to dignity or injury to pride ( | Aggravated damages provide additional compensation where the wrongdoer’s actions have caused mental distress, injury to dignity, or injury to pride ([http://canlii.ca/t/20zgp ''Campbell v Read'', 22 BCLR (2d) 214 (CA), 1987 Carswell BC 440]). Awards of aggravated damages are rare and depend heavily on the actions of the wrongdoer and the circumstances. Aggravated damages have previously been awarded in cases of aggravated assault and sexual assault ([http://canlii.ca/t/ft05t ''Thornber v Campbell'', 2012 BCSC 1449;] [http://canlii.ca/t/flvt5 ''B(A) v D(C)'', 2011 BCSC 775]). The claimant must provide actual evidence of mental distress that results from the wrongdoing of the defendant. | ||
A claimant who seeks aggravated damages must ask for aggravated damages in the Notice of Claim. | A claimant who seeks aggravated damages must ask for aggravated damages in the Notice of Claim (or “Application for Dispute Resolution” in the Civil Resolution Tribunal). Aggravated damages cannot be awarded in addition to the applicable monetary limit at the CRT or small claims. | ||
=== 8. Punitive Damages === | === 8. Punitive Damages === | ||
Punitive damages, also called “exemplary damages”, are reserved for conduct that is so abhorrent that the court must impose an additional penalty to punish the wrongdoer and discourage others from engaging in similar conduct. | Punitive damages, also called “exemplary damages”, are reserved for conduct that is so abhorrent that the court must impose an additional penalty to punish the wrongdoer and discourage others from engaging in similar conduct (''Honda Canada Inc. v. Keays'', 2008 SCC 39). Punitive damages are '''rarely''' awarded. Punitive damages are not compensatory and the amount, if any, is in the complete discretion of the judge. | ||
A claimant who seeks punitive damages must ask for punitive damages in the Notice of Claim (or “Application for Dispute Resolution” in the Civil Resolution Tribunal). Punitive damages '''cannot''' be awarded in addition to the monetary limit. | |||
== C. Limitation Periods == | == C. Limitation Periods == | ||
===1. Changes Due to COVID-19=== | ===1. Changes Due to COVID-19=== | ||
'''NOTE:''' | :'''NOTE:''' Due to COVID-19, limitation dates were temporarily suspended. However, as of March 25, 2021, the suspension has been lifted, and limitations dates function as per usual. | ||
To calculate limitations dates that were affected by COVID-19, please refer below guidelines for calculating BC limitation periods from the Law Society of BC website. | |||
* If the limitation period would normally have expired between March 26, 2020 and March 25, 2021, add one year to the expiry year of the limitation period. Thus, persons have the same amount of time remaining after the suspension of limitation periods as they did before. | |||
* If the cause of action arose before March 26, 2020 and would normally expire after March 26, 2021, add one year to the expiry year of the limitation period. | |||
* If the cause of action arose after the suspension of limitation periods but before March 25, 2021, then the limitation period expires March 26, 2023. In this way, a limitation period that began to run during the suspension starts to run when the suspension is lifted. | |||
The CRT remained open and operating normally during the COVID-19 pandemic. The automatic suspension of limitation dates did not apply to the CRT. | |||
===2. Limitation Act=== | ===2. Limitation Act=== | ||
Line 96: | Line 92: | ||
After a certain amount of time has passed, a person loses the right to commence a claim. The amount of time that must pass before the limitation period expires depends on which act applies to the claim. | After a certain amount of time has passed, a person loses the right to commence a claim. The amount of time that must pass before the limitation period expires depends on which act applies to the claim. | ||
The | The ''Limitation Act'', SBC 2012, c 13 [Limitation Act] came into effect on June 1, 2013. A claim is governed by this Act if the claim was discovered after this date. Under the ''Limitation Act'', s 6(1), the basic limitation period that applies to most claims is 2 years after the day on which the claim is discovered. | ||
Discovery occurs the day on which the claimant knew or reasonably ought to have known all of the following: | |||
* That injury, loss or damage had occurred; | |||
* That the injury, loss or damage was caused by or contributed to by an act or omission; | |||
* That the act or omission was that of the person against whom the claim is or may be made; | |||
* That, having regard to the nature of the injury, loss or damage, a court proceeding would be an appropriate means to seek to remedy the injury, loss or damage (''Limitation Act'', s 8). | |||
However, there are certain situations where the date of discovery is deemed to be a later date, or where the limitation period is suspended. Under s. 24(1) of the Limitation Act, acknowledgement of liability by the person against whom the claim is made resets the running of the period to the day the acknowledgement is made. The kind of acknowledgement that qualifies here is strictly defined in s. 24(6). Under s. 25(1), the basic limitation period and ultimate limitation period applicable to the claim do not run if the claimant becomes a person with a disability, while the person continues to be a person under a disability. | |||
For more information refer to '''Appendix F: Limitation Periods''' or consult a lawyer. | |||
{{LSLAP Manual Navbox|type=chapters15- | {{LSLAP Manual Navbox|type=chapters15-23}} |
Latest revision as of 17:51, 7 August 2024
This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on July 31, 2024. |
In order to have a legal claim, it must be recognized by the law. A frivolous claim is one that does not disclose a legal cause of action, is incapable of proof, or is otherwise bound to fail. A vexatious claim is one that is brought in order to annoy, frustrate, or antagonize the defendant. A claim may be both frivolous and vexatious.
If a claim is frivolous or vexatious, the claimant will lose and may be penalized up to 10% of the amount of the claim or counterclaim (Small Claims Rules, BC Reg 261/93, 20(5) [SCR]). The penalty could be up to $8,750 on a $35,000 claim; it pays to research your cause of action and limit your claim to the proper amount.
A. Types of Claims & Remedies
It is helpful to research each of the following types of claims to ensure that a claim falls within at least one of them. See Appendix G: Causes of Action for a partial list of specific causes of action. If you are unable to fit your claim into one of the listed categories, you should consult a lawyer to see if you have a cause of action.
1. Tort
Torts are offences committed by one person against another. Examples include assault, battery, and negligence. Each tort has its own test and defences. Tort law continues to evolve and a person planning to bring a claim in tort should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.
2. Contract
Contract law governs voluntary relationships between parties. It is a complicated and nuanced area of the law and a person planning to bring a claim in contract law should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.
- NOTE: Courts will generally not enforce illegal contracts or dishonest transactions (See Faraguna v Storoz, [1993] BCJ No. 2114). However, Transport North American Express Inc. v New Solutions Financial Corp., 2004 SCC 7 states that a court may enforce legal portions of a contract, thus effectively severing the illegal portion. A common example involves contracts purporting to charge interest rates prohibited under s 347 of the Criminal Code. The court will not enforce a term in a contract purporting to charge such a rate. (However, section 347.1 exempts payday loans from criminal sanctions, if certain conditions are met; see Section V.G: Regulation of Payday Lenders and Criminal Rate of Interest in Chapter 11: Consumer Protection).
3. Equity
The usual remedy for torts and breaches of contract is monetary damages. In circumstances where monetary damages are inadequate or where a legal remedy is improper in the circumstances, the court may grant other relief such as an injunction. The Small Claims Court, pursuant to s 2 of the Small Claims Act [SCA] (Small Claims Act, RSBC 1996, c 430), has a limited inherent jurisdiction to grant equitable remedies. The Civil Resolution Tribunal, pursuant to s 118 of the Civil Resolution Tribunal Act [CRTA] (Civil Resolution Tribunal Act, SBC 2012, c 25), has the same limited jurisdiction. A party seeking an equitable remedy such as an injunction should consult with a lawyer and will likely need to apply to the Supreme Court for relief.
4. Restitution
The law of restitution applies to circumstances where a party has benefited, the other party has suffered a loss as a result, and there is no legal basis for the party to have benefited (Nouhi v Pourtaghi, 2022 BCSC 807). The type of claim commonly pursued for a restitution remedy is referred to as “unjust enrichment” and is a complicated and evolving area of the law. A party planning to attain a restitution remedy should consult a lawyer, research what must be proved to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.
5. Statute
Certain statutes create a right of action that does not exist in the common law. The statute will set out what must be proved, the defences that apply, the types of damages that can be awarded, and how the claim must be brought. A person planning to bring a claim under a statutory cause of action should research the statute as well as how the courts have interpreted it by noting up the applicable provisions. See page 2: “Other Important Statutes”. Resources include CanLII.org, the courthouse library, and a practicing lawyer.
6. Declaratory Relief
Declaratory relief, whereby the court defines the rights of the parties to resolve legal uncertainties, cannot be claimed at the Provincial Court of British Columbia or the CRT. This includes declarations of who is liable for an accident and then ordering the defendant (often represented by an insurer) to change its liability determination. Parties seeking declaratory relief must do so at the BC Supreme Court (Supreme Court Civil Rules, BC Reg 168/2009, 20-4(1)).
B. Types of Damages
Although the Small Claims Court has the jurisdiction to award $35,000, the monetary awards in most cases are significantly less (Small Claims Court Monetary Limit Regulation, BC Reg 179/2005). There must be a principled basis for an award of damages and it is helpful to separate a claim into the following types of damages. Ensuring that there is a legal basis for a claim is a critical step as there are penalties for proceeding through a trial in Small Claims Court on a claim that has no reasonable basis for success (SCR, s 20(5)).
1. General Damages
General damages, also called non-pecuniary damages, are those that are not easy to quantify and for which a judge must assess the amount of money that, in the circumstances, will compensate for the loss. A common example of general damages is “pain and suffering”. The purpose of general damages is to compensate and not to punish; a party should not expect to profit or realize a windfall through an award of general damages. For both general and special damages, the principle of remoteness of damage relates to both tort and contract law cases. Defendants are generally only accountable for harm brought on by their wrongful acts or contractual breaches when that harm was reasonably foreseeable at the time of the conduct in question, or could have been reasonably contemplated to be a consequence of breaching the contractual term. A person planning to claim general damages should be ready to provide evidence of the loss and research the case law to determine how the courts have assessed damages in cases with similar losses and circumstances. Resources include CanLII.org, the courthouse library, and a practising lawyer.
2. Special Damages
Special damages are generally quantifiable out-of-pocket expenses that must be specifically claimed and strictly proven (SCR, s 20(5)). For example, if a person has been put to expense and has receipts showing the amounts spent, these expenses would be classified as special damages. In a personal injury action, this could be medical bills, or in an action involving faulty equipment, repair bills could be classified as special damages. Each and every expense must be strictly proved with documents or other satisfactory evidence. In Redl v. Sellin, 2013 BCSC 581, the Court sets out the test with respect to a claimant’s claim for special damages. Generally speaking, claims for special damages are subject only to the standard of reasonableness. As with claims for the cost of future care (see Juraski v. Beek, 2011 BCSC 982; Milina v. Bartsch (1985), 49 BCLR (2d) 33 (BCSC))], when a claimed expense has been incurred in relation to treatment, evidence of medical justification for the expense is a factor in determining reasonableness.
3. Nominal Damages
Nominal damages are those where a wrong has been committed but there has been no, or insignificant, damages suffered as a result of the wrong. Certain torts, such as trespass, allow claims for nominal damages however there is little reward and much to be lost. A person who has suffered no damages yet still brings a claim may not recover the costs for bringing a claim that wastes the court’s and the parties’ time and money. Note that cost awards are limited in small claims cases (SCR, s 20(2)) and in Civil Resolution Tribunal cases, legal fees will rarely be awarded (Civil Resolution Tribunal Rules, Rule 9.4(3) [CRTR]).
4. Debt
Debt is a remedy for breach of contract; see Busnex Business Exchange Ltd. v Canadian Medical Legacy Corp., 1999 BCCA 78. The requirement for establishing a debt or ‘liquidated demand’ is that the sum of money is evident or able to be calculated by virtue of the contract. If the amount requires more investigation than mere calculation, the amount is not a debt but ‘damages’.
5. Liquidated Damages
Some contracts provide for a genuine pre-estimate of damages in the event of a breach and allow the non-breaching party to claim for that estimate without having to prove the amount they have actually lost. This amount can be recovered as a debt. If the amount of liquidated damages is not a genuine pre-estimate of damages or is manifestly inappropriate in the circumstances, a court may decline to award them. However, the CRT cannot relieve a penalty because it is not a “court” (Law and Equity Act, s 24(2)).
6. Statutory Damages
Statutory damages are those that arise from a breach by the defendant of an obligation found in a statute. The statute and relevant case law should be examined carefully to determine what damages, if any, may be claimed and the principles for assessing damages. Note, there are few statutory breaches that trigger statutory damages.
7. Aggravated Damages
Aggravated damages provide additional compensation where the wrongdoer’s actions have caused mental distress, injury to dignity, or injury to pride (Campbell v Read, 22 BCLR (2d) 214 (CA), 1987 Carswell BC 440). Awards of aggravated damages are rare and depend heavily on the actions of the wrongdoer and the circumstances. Aggravated damages have previously been awarded in cases of aggravated assault and sexual assault (Thornber v Campbell, 2012 BCSC 1449; B(A) v D(C), 2011 BCSC 775). The claimant must provide actual evidence of mental distress that results from the wrongdoing of the defendant.
A claimant who seeks aggravated damages must ask for aggravated damages in the Notice of Claim (or “Application for Dispute Resolution” in the Civil Resolution Tribunal). Aggravated damages cannot be awarded in addition to the applicable monetary limit at the CRT or small claims.
8. Punitive Damages
Punitive damages, also called “exemplary damages”, are reserved for conduct that is so abhorrent that the court must impose an additional penalty to punish the wrongdoer and discourage others from engaging in similar conduct (Honda Canada Inc. v. Keays, 2008 SCC 39). Punitive damages are rarely awarded. Punitive damages are not compensatory and the amount, if any, is in the complete discretion of the judge.
A claimant who seeks punitive damages must ask for punitive damages in the Notice of Claim (or “Application for Dispute Resolution” in the Civil Resolution Tribunal). Punitive damages cannot be awarded in addition to the monetary limit.
C. Limitation Periods
1. Changes Due to COVID-19
- NOTE: Due to COVID-19, limitation dates were temporarily suspended. However, as of March 25, 2021, the suspension has been lifted, and limitations dates function as per usual.
To calculate limitations dates that were affected by COVID-19, please refer below guidelines for calculating BC limitation periods from the Law Society of BC website.
- If the limitation period would normally have expired between March 26, 2020 and March 25, 2021, add one year to the expiry year of the limitation period. Thus, persons have the same amount of time remaining after the suspension of limitation periods as they did before.
- If the cause of action arose before March 26, 2020 and would normally expire after March 26, 2021, add one year to the expiry year of the limitation period.
- If the cause of action arose after the suspension of limitation periods but before March 25, 2021, then the limitation period expires March 26, 2023. In this way, a limitation period that began to run during the suspension starts to run when the suspension is lifted.
The CRT remained open and operating normally during the COVID-19 pandemic. The automatic suspension of limitation dates did not apply to the CRT.
2. Limitation Act
After a certain amount of time has passed, a person loses the right to commence a claim. The amount of time that must pass before the limitation period expires depends on which act applies to the claim.
The Limitation Act, SBC 2012, c 13 [Limitation Act] came into effect on June 1, 2013. A claim is governed by this Act if the claim was discovered after this date. Under the Limitation Act, s 6(1), the basic limitation period that applies to most claims is 2 years after the day on which the claim is discovered.
Discovery occurs the day on which the claimant knew or reasonably ought to have known all of the following:
- That injury, loss or damage had occurred;
- That the injury, loss or damage was caused by or contributed to by an act or omission;
- That the act or omission was that of the person against whom the claim is or may be made;
- That, having regard to the nature of the injury, loss or damage, a court proceeding would be an appropriate means to seek to remedy the injury, loss or damage (Limitation Act, s 8).
However, there are certain situations where the date of discovery is deemed to be a later date, or where the limitation period is suspended. Under s. 24(1) of the Limitation Act, acknowledgement of liability by the person against whom the claim is made resets the running of the period to the day the acknowledgement is made. The kind of acknowledgement that qualifies here is strictly defined in s. 24(6). Under s. 25(1), the basic limitation period and ultimate limitation period applicable to the claim do not run if the claimant becomes a person with a disability, while the person continues to be a person under a disability.
For more information refer to Appendix F: Limitation Periods or consult a lawyer.
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