Christopher Valente

The appellant, a general contractor, appealed a summary judgment dismissing its breach of contract action against a sprinkler system subcontractor as statute-barred.

The appellant argued the limitation period began when the respondent refused to pay an invoice for repair costs under a 'save harmless' clause, rather than when the water damage occurred 3.5 years prior to the lawsuit.

The Court of Appeal dismissed the appeal, upholding the motion judge's finding that the cause of action arose, and was discovered, when the water damage occurred and the appellant put the respondent on notice of its responsibility.

The plaintiffs sought court approval for an advance payment of $1 million (the insurance policy limits) from one set of defendants to a plaintiff under disability.

A co-defendant opposed the approval, arguing the payment would only benefit the plaintiffs' counsel to fund ongoing litigation and that the Insurance Act did not contemplate such a payment without an admission of liability.

The court rejected these arguments, finding no prejudice to the co-defendant and concluding that the advance payment would benefit the plaintiff.

The court approved the advance payment and awarded costs to the plaintiffs.