The Limitations Act is a critical piece of legislation that sets out the time limits for commencing legal actions in Canada. The Act aims to ensure that claims are brought forward in a timely manner, and that evidence remains fresh and available. However, when a party breaches the Limitations Act, the consequences can be severe.
The consequences of breaching the Limitations Act mean that the plaintiff may lose their legal right to pursue the claim in court. The Niessners should have never been able to pursue any lawsuit in Saskatchewan.
There was a contract executed between Richard Lunemann and Charles Niessner. Mr. Niessner signed over 60% of the shares to Mr. Lunemann in December 1990. The sale of shares by Niessner to Lunemann occurred more than 15 years before the commencement of either the Saskatchewan Action or the New Jersey Action. Payment of the purchase price of the shares likewise occurred more than 15 years before the commencement of either the Saskatchewan Action or the New Jersey Action.
No proceeding shall be commenced after 15 years from the day on which the act or omission on which the claim is based took place.
This rule is in place to make sure that people take legal action in a reasonable amount of time and to ensure that evidence and memories of the event are still fresh. It also helps the person being sued feel more secure because they know that they cannot be sued for something that happened a long time ago.
