The appellants appealed an order dismissing their motions under Rules 20 and 21 to strike the respondent's claims for constructive dismissal and related torts as statute-barred.
The motion judge had found that the claims could have been discovered before the respondent resigned, potentially triggering the six-year limitation period under the transitional provisions of the Limitations Act, 2002.
The Divisional Court allowed the appeal, holding that a cause of action for constructive dismissal arises only when the employee resigns.
As the resignation occurred in May 2004, the two-year limitation period applied and the claims were statute-barred.
The court also held that the motion judge erred in linking the Rule 20 and Rule 21 motions, and found no triable issue regarding promissory estoppel or acknowledgment of liability.