The parties separated in 1992 and the limitation period for an equalization claim expired in December 1998.
The appellant retained counsel in September 1998, and negotiations regarding the respondent's pension continued past the limitation period.
When negotiations failed, the appellant commenced an action and sought an extension of time under s. 2(8) of the Family Law Act.
The motions judge dismissed the motion, finding bad faith and prejudice.
The Court of Appeal allowed the appeal, holding that the motions judge erred by focusing only on the pre-1998 delay and by finding prejudice where the respondent had notice of the claim before the limitation period expired.