A municipal defendant brought a motion seeking leave to amend its statement of defence and crossclaim to add detailed allegations of negligence against co-defendants in a construction dispute involving a cottage.
The responding parties argued that the proposed amendments introduced a new cause of action and were therefore barred by the two-year limitation period under the Limitations Act.
The court held that most of the proposed amendments merely particularized the existing claim for contribution and indemnity under the Negligence Act and did not constitute a new cause of action.
However, an allegation asserting active concealment of construction defects was excluded because it amounted to an allegation of fraud rather than negligence.
Leave to amend was granted except for that paragraph.