Nicholas Ryan Carmichael

The appellant, a property developer, purchased contaminated land in 1990 and commenced an action in January 2004 seeking damages for soil contamination.

The motion judge granted summary judgment, finding the action was statute-barred because the appellant had actual knowledge of the contamination by April 1991, triggering a six-year limitation period that had expired long before the action was commenced.

The appellant appealed, arguing the motion judge erred in principle, made palpable and overriding errors of fact, and failed to consider whether its continuing nuisance claim was statute-barred.

The Court of Appeal dismissed the appeal, holding that the appellant's knowledge of contamination in 1991, albeit to an uncertain extent, was sufficient to trigger the limitation period, and the appellant was not required to know the full extent of the contamination for the period to begin running.

The court considered the allocation and quantum of costs following summary judgment in favour of Canadian Pacific Railway Company (CPR), where the third party, Canada Colors and Chemicals Limited (CCCL), sought costs from the plaintiff, 863880 Ontario Limited.

The court found that exceptional circumstances justified ordering the plaintiff to pay CCCL’s costs, but not the full amount claimed.

The court directed a revised calculation, holding the plaintiff responsible for half of CCCL’s reasonable costs up to the discontinuance of a related third party claim, and all reasonable costs thereafter, subject to a 20% reduction and further specific deductions.

The defendant, Canadian Pacific Railway Company (CPR), brought a motion for summary judgment to dismiss an action by 863880 Ontario Limited (863) as statute-barred.

The action sought damages for TCE contamination on a property purchased by 863 from CPR's predecessors.

CPR argued 863 had sufficient knowledge of the contamination by April 1991, triggering the six-year limitation period. 863 contended it only gained full knowledge in 1998.

The court found that 863 had actual knowledge of the contamination in April 1991, sufficient to trigger the limitation period, as perfect or complete knowledge of the extent or source of damage is not required.

The motion for summary judgment was granted, and 863's action against CPR was dismissed.