The defendant, Town of Gravenhurst, brought a motion to amend its third-party claim against Ontario to include new allegations of negligence related to a two-year driving prohibition for careless driving, distinct from the original claim concerning medical suspensions.
The court found the proposed amendments constituted a new cause of action.
Applying the recent Court of Appeal decision in Mega International Commercial Bank (Canada) v. Yung, the court confirmed that the discoverability principle applies to claims for contribution and indemnity under s. 18 of the Limitations Act, 2002.
Given the insufficient evidentiary record to determine when the new claim could have been reasonably discovered, the court allowed the amendment, preserving Ontario's right to plead a limitation period defence at trial.