Summary judgment dismissing crossclaim for environmental contamination denied due to genuine issue regarding discoverability.
The moving party defendants sought summary judgment dismissing the responding party defendants' crossclaim for independent damages and equitable set-off relating to environmental contamination of a purchased property.
The moving parties argued the claims were brought more than two years after the responding parties knew or ought to have known of the contamination.
The court dismissed the motion, finding a genuine issue requiring a trial regarding when the responding parties, who were unsophisticated purchasers, ought to have discovered the claim given conflicting evidence about which environmental reports were provided prior to closing.
The court also held that the independent damages claim was not a new cause of action but an additional form of relief based on facts already pled.
Dunn and Drummond Incorporated v. Fisher Environment Ltd. et al., 2026 ONSC 509
