Background
- Incident: On July 26, 2012, Sylwester Walczak’s business partner altered a cheque and deposited it into a controlled account at CIBC.
- Claim: Walczak filed a claim on November 17, 2022, against CIBC for repayment and damages, discovering the fraud in 2021.
- Initial Ruling: Applications Judge Prowse granted summary judgment to CIBC on April 19, 2023, ruling the claim was statute-barred under section 3(1)(b) of the Limitations Act.
Key Issues
- Statute of Limitations: Whether Walczak’s action was barred by the ten-year limitation period under section 3(1)(b) of the Limitations Act.
- Fraudulent Concealment Exception: Whether section 4(1) of the Act, which suspends the limitation period due to fraudulent concealment, applied.
Legal Analysis
- Statute of Limitations: The limitation period begins when the wrongful act occurs, not when discovered. The ten-year period expired on October 10, 2022. Walczak’s claim was filed after this period.
- Fraudulent Concealment: Requires active concealment. CIBC did not alter the cheque or conceal the fraud and was unaware until informed in 2021. Section 4(1) does not apply.
Decision
- Appeal Dismissed: The appeal was dismissed, upholding that the claim was statute-barred.
- Costs: Respondents were awarded $1,600, to be paid by October 1, 2024.
Despite discovering the fraud in 2021, the law mandates the ten-year period starts from the date of the wrongful act, and fraudulent concealment was not proven.
