The plaintiff, Mastronardi Produce Limited (MPL), sued the defendant, Rainbow Acres Inc. (RAI), for $516,686.40 for unpaid seeds and packaging materials.
RAI conceded the principal debt but argued it was largely statute-barred under the Limitations Act, 2002, and disputed the 18% interest rate.
The court found that MPL successfully rebutted the presumption of discoverability, determining the claim was not discoverable until 2014 due to the nature of the long-standing commercial relationship and ongoing payment efforts.
The court also found that the debt constituted a running account, and RAI's partial payments and signed acknowledgements reset the limitation period.
However, the court declined to apply the 18% contractual interest rate, finding no implied agreement, and instead awarded pre-judgment and post-judgment interest at the default rates prescribed by the Courts of Justice Act.