Case Background:

• The Saxbergs sued Seargeant Picard Incorporated (SPI) for $750,000 in damages for water damage caused by construction defects in their luxury cottage.
• SPI argued the lawsuit was statute-barred under Ontario's Limitations Act, 2002 because the Saxbergs knew or ought to have known about the defects in 2012.
• The Saxbergs claimed the extent of damage wasn't discovered until 2015 when another contractor found latent defects.

Trial Court Decision:

• The motion judge denied SPI's summary judgment motion and ruled the Saxbergs' claim was within the limitation period.
• A "boomerang" order was issued, affirming the claim's timeliness.

Appeal Issues:

1. Discoverability Analysis: SPI contended that the motion judge misapplied the legal test for when the limitation period began.
   • The Ontario Court of Appeal rejected this, finding the motion judge correctly assessed when the Saxbergs reasonably discovered the damage.
   • SPI's assurances in 2012 misled the Saxbergs about the defects' significance.
2. "Boomerang" Order: SPI argued the motion judge erred by affirming the claim’s timeliness without further procedural steps.
   • The Court upheld the "boomerang" order, as both parties had agreed it was appropriate during the initial hearing.

Decision:

• Appeal dismissed; SPI failed to show errors in the motion judge’s findings or reasoning.
• The Court emphasized that SPI’s appeal tactics caused unnecessary delays in resolving the case.

Costs:

• SPI was ordered to pay $35,000 in appeal costs to the Saxbergs.