The appellant municipality appealed the dismissal of its motion for summary judgment, which sought to dismiss the respondent's claim for $8.9 million in unfunded transit liabilities as statute-barred.
The dispute arose from a by-law transferring transit responsibilities from the appellant to the respondent, which required the parties to negotiate the allocation of unfunded liabilities.
The Court of Appeal held that the limitation period did not begin to run until the appellant's municipal council passed a formal resolution denying responsibility and refusing to arbitrate, as the by-law imposed an ongoing obligation to negotiate.
The appeal was dismissed.
