The appellants commenced an action against the respondent, a personal injury lawyer, for damages arising from the non-payment of referral fees allegedly owed under an oral contract spanning 1984 to 2018.
The appellants claimed entitlement to 10% of gross settlements or awards on over 130 referred lawsuits.
The respondent denied the existence of any contract and brought a summary judgment motion relying on denial of contract, alleged illegality, and limitation defences.
The motion judge found genuine issues requiring trial regarding contract existence and legality but granted partial summary judgment on limitation grounds, dismissing claims for lawsuits settling before December 10, 2017.
The appellants appealed, arguing the motion judge erred in characterizing the contract and in failing to recognize that the cause of action did not arise until the relationship ended in 2018.
The Court of Appeal dismissed the appeal, finding the motion judge correctly determined that the cause of action accrued when each referred lawsuit settled and payment was not made, regardless of whether the full extent of damages was known.
