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An email acknowledging difficulties paying an account refreshed the limitation period for invoices not yet statute-barred.
The plaintiff, Anderson Sheet Metal Ltd., brought a summary judgment motion against the defendant, Comtract Air Compressors Inc., for unpaid invoices.
The central issue was whether an email exchange between the parties refreshed the two-year limitation period under the Limitations Act, 2002.
The court found that the email exchange constituted a clear and unequivocal acknowledgment of the debt for some, but not all, outstanding invoices.
The court also determined the appropriate interest rate for the successful claims.
The court dismissed the defendants' motion to set aside a default judgment, finding their explanation for default not credible and their proposed defence lacking an air of reality.
The defendants moved to set aside a default judgment obtained by the plaintiff.
The court applied the five-factor test from Mountain View Farms Ltd. v. McQueen, assessing promptness, plausible excuse for default, arguable defence, prejudice, and integrity of justice.
The court found the defendants' explanation for default incredible and their proposed defence lacking an air of reality, particularly regarding the Construction Act claims and personal guarantees.
The motion was dismissed, upholding the default judgment.
