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407 ETR v. Day (2014) - Transponder lease agreements - Limitation Period |
20 Feb 2015 12:00 #242130
by Snoopster
This recent case is important and significant for all the GTA folks here who use the 407 toll highway.
Mr. Day was sued by the 407 for failing to pay his toll. He argued that the 407 was out of time as it did not bring the action within 2 years as prescribed by the Limitation Act. The 407 argued that (a) there was no limitation period and/or (b) if there was a limitation period, it was 15 years as set out in the transponder lease agreement between the 407 and Mr. Day. A motion was brought to determine the issue and the court found in favour of Mr. Day. The action was dismissed.
In 2010 Mr. Day entered into a lease for a transponder with the 407. The application form of the lease has separate areas for people who intend to use the 407 for personal use and those for business use. Mr. Day completed only the "personal use" portion of the application. The terms and conditions in fine print on the back of the application stated that the applicable limitation period to commence an action to recover unpaid accounts was 15 years. The Limitations Act priovides for exceptions to the general limitation period of 2 years for all actions if the contract was a "business agreement".
The last invoice for unpaid tolls was sent to Mr. Day in May 2011. He did not pay the invoices. When he attempted to renew his license plates it was denied on the basis of his outstanding 407 account. His plates duly expired as he did not pay the outstanding account. 407 then commenced the action in June 2013.
The judge found that there is a limitation period applicable to these types of disputes. The applicable limitation period was 2 years and not 15 years because Mr. Day was using the 407 for personal and not business use and therefore did not fall within the exceptions in the Limitations Act. The time starts to runs from the date Mr. Day's plates were denied and not from the date of the first or last invoice. 407 therefore had 2 years from the date Mr. Day's plates were denied to bring their action. The limitation period for out of province and U.S. drivers is also 2 years but the clocks starts to run from the date of the first invoice as the registrar cannot deny the renewal of plates for these drivers.
So all you Ontario 407 users here pay attention when filling out the application forms for your transponder. If you have been recently sued by the 407 the clock started to run from the date your plate was denied (if it was personal use). Not the date of the invoice.
Mr. Day was sued by the 407 for failing to pay his toll. He argued that the 407 was out of time as it did not bring the action within 2 years as prescribed by the Limitation Act. The 407 argued that (a) there was no limitation period and/or (b) if there was a limitation period, it was 15 years as set out in the transponder lease agreement between the 407 and Mr. Day. A motion was brought to determine the issue and the court found in favour of Mr. Day. The action was dismissed.
In 2010 Mr. Day entered into a lease for a transponder with the 407. The application form of the lease has separate areas for people who intend to use the 407 for personal use and those for business use. Mr. Day completed only the "personal use" portion of the application. The terms and conditions in fine print on the back of the application stated that the applicable limitation period to commence an action to recover unpaid accounts was 15 years. The Limitations Act priovides for exceptions to the general limitation period of 2 years for all actions if the contract was a "business agreement".
The last invoice for unpaid tolls was sent to Mr. Day in May 2011. He did not pay the invoices. When he attempted to renew his license plates it was denied on the basis of his outstanding 407 account. His plates duly expired as he did not pay the outstanding account. 407 then commenced the action in June 2013.
The judge found that there is a limitation period applicable to these types of disputes. The applicable limitation period was 2 years and not 15 years because Mr. Day was using the 407 for personal and not business use and therefore did not fall within the exceptions in the Limitations Act. The time starts to runs from the date Mr. Day's plates were denied and not from the date of the first or last invoice. 407 therefore had 2 years from the date Mr. Day's plates were denied to bring their action. The limitation period for out of province and U.S. drivers is also 2 years but the clocks starts to run from the date of the first invoice as the registrar cannot deny the renewal of plates for these drivers.
So all you Ontario 407 users here pay attention when filling out the application forms for your transponder. If you have been recently sued by the 407 the clock started to run from the date your plate was denied (if it was personal use). Not the date of the invoice.
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20 Feb 2015 14:00 #242219
by Snoopster
Well Krish if you have any outstanding invoices and they don't sue you within 2 years of the date of the first invoice then they will be statute barred and you will have a complete defence!
Well Krish if you have any outstanding invoices and they don't sue you within 2 years of the date of the first invoice then they will be statute barred and you will have a complete defence!
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