The plaintiff, Nygård, moved to amend its Statement of Claim, and the defendant, HBC, brought a cross-motion for summary judgment dismissing the action as statute-barred.
The dispute arose from consignment agreements where HBC allegedly applied unauthorized markdowns to the selling price.
The court found that Nygård discovered the initial setoffs in 2012, making those claims statute-barred.
However, the ongoing deductions constituted periodic breaches of contract.
The court held that claims arising before February 2, 2016 (two years prior to the motion to amend) were statute-barred, while claims arising after that date could proceed.
