The Crown appealed a motion judge's decision awarding $4.6 billion in damages to a class of disabled veterans for the Crown's failure to invest or pay interest on administered pension funds prior to 1990.
The Court of Appeal allowed the appeal, finding that a previous Supreme Court of Canada decision upholding the validity of s. 5.1(4) of the Department of Veterans Affairs Act finally ended the litigation.
The Court held that s. 5.1(4) constituted a complete bar to the class's claims for damages, and that the motion judge erred in interpreting it as only a partial bar.
Furthermore, the Court found that the claims were time-barred and that the doctrine of equitable fraud did not apply to toll the limitation period.