744185 Ontario Incorporated v. Attorney General of Canada
744185 Ontario Incorporated o/a Air Muskoka
Law Firm / Organization
Paul J. Daffern Law Firm
Lawyer(s)

Paul J. Daffern

Dave Gronfors
Law Firm / Organization
Paul J. Daffern Law Firm
Lawyer(s)

Paul J. Daffern

Attorney General of Canada
Law Firm / Organization
Department of Justice Canada
District Municipality of Muskoka
Law Firm / Organization
Blake, Cassels & Graydon LLP
Lawyer(s)

Daniel Szirmak

Background:

  • Gronfors, through Air Muskoka, leased land at Muskoka Airport, initially under Transport Canada, with representations that investments would yield a lease extension beyond the 2023 expiry to 2043. The lease transferred to the District in 1996 without an extension.
  • Plaintiffs allege breaches and seek damages for breach of contract, misrepresentation, and unjust enrichment.

Legal Motions:

  • Attorney General and District's Motions: Both parties moved to dismiss claims based on the Limitations Act, 2002, asserting the statute barred the claims.
  • Plaintiffs’ Argument: Claimed ongoing breach of the lease prevented limitation expiry; also argued the Real Property Limitations Act (RPLA) applied due to the land lease.

Court’s Analysis & Decision:

  1. Limitations Act vs. RPLA: The court found the Limitations Act applicable as the claim didn’t seek property recovery, but monetary damages.
  2. Claims Analysis:
    • Misrepresentation Claim: Time-barred as the misrepresentation was discoverable by 2006.
    • Other Claims (e.g., Quiet Enjoyment, Economic Interference): All found statute-barred based on their respective discovery dates, exceeding the permissible two-year limit.
  3. Order: Action dismissed without leave to amend due to time-barred status of all claims.

Costs: To be determined if parties cannot reach agreement within set deadlines. Specific amount was not determined within the decision.

This decision reinforces the enforceability of limitations on claims even where leases or representations extend, upholding statutory requirements for timely litigation.

Superior Court of Justice - Ontario
CV-20-54; CV-20-54-A1
Real estate
Defendant