Emily Graham

The court issued supplementary reasons to clarify when the two-year limitation period begins to run for claims arising from unpaid Highway 407 toll invoices.

The dispute concerned whether the limitation period commenced when the debtor’s vehicle permit expired during licence plate denial or when the debtor was first placed into licence plate denial under the Highway 407 Act.

The court held that the limitation period begins when the Registrar places the debtor’s licence plate into licence plate denial.

This interpretation avoids allowing the toll operator to control when the limitation period begins and is consistent with the statutory collection scheme and the principles underlying limitation periods.

The court therefore confirmed that the limitation period in the case began on the date the licence plate was placed into denial.

The tenants under two long-term ground leases appealed a majority arbitration award determining the fair market value of the lands for rent re-set purposes.

The court upheld the arbitrators' finding that the freehold interest, not the leasehold interest, was to be valued.

However, the court found the arbitrators erred in law by including the potential value of a freehold residential condominium project in the valuation, as a prior Divisional Court decision between the parties established that development potential unavailable to the tenants due to legal restrictions must be excluded.

Finding that issue estoppel applied to this prior determination, the court set aside the arbitration award and ordered a new hearing.