Consultants retained by multiple landowners to assist in obtaining government approval for urban development entered into a Cost Sharing Agreement providing for hourly fees and a bonus payment upon formal adoption of a Regional Official Plan Amendment.
One landowner purported to terminate the Agreement unilaterally in 2004.
The Regional Official Plan Amendment was adopted in 2009 with all appeals exhausted in 2015.
The consultants commenced an action for the bonus in 2015.
The respondents moved to dismiss on limitation grounds.
The motions judge dismissed the action.
On appeal, the appellants argued the termination was ineffective because only collective termination was permitted and that the limitation period had not expired.
The Court of Appeal held that while individual termination was not permitted, the appellants had accepted the anticipatory repudiation through their conduct and inaction over 11 years, thereby accepting the termination and causing the limitation period to expire.