The plaintiff subcontractor appealed a Small Claims Court order striking out its claims for unpaid invoices and breach of trust as statute-barred.
The Divisional Court allowed the appeal, finding the motion judge made a palpable and overriding error by ignoring uncontradicted evidence that the defendants' promises to pay may have extended the limitation period.
The court also held it was premature to strike the breach of trust claims before documentary discovery could establish when the contractor received funds from the owner, which triggers the trust and the limitation period.
