The appellant Ministry of Transportation appealed a summary judgment dismissing its action against a contractor as statute-barred.
The parties' standard form construction contract required a notice of protest and alternative dispute resolution to be completed within two years of contract completion.
However, the referee's decision was not released until after this two-year period expired.
The Court of Appeal held that the motion judge erred in interpreting the contract; it is commercially absurd to require a party to protest a decision before it is released.
Because the contractual limitation period could not apply, the statutory two-year limitation period governed, and the appellant's action was commenced in time.
The appeal was allowed and the summary judgment set aside.
