What is the limitation period applicable to a claim for
indemnification, where the right to indemnification is contained within an
employment contract? According to a recent decision from the Honourable Justice
Heidi Polowin, Canaccord Capital Corporation v. Roscoe, 2012 ONSC 5714 (CanLII), two years from
the date upon which the employer is found liable to a third-party plaintiff.
[EDIT: The Superior Court decision was overturned by the Court of Appeal for Ontario on June 7, 2013. For a summary of that decision see: Employers Must Sue for Indemnification Within Two Years: ONCA.]
The case raises the issue of the rights of third parties and
the ability to add third parties after the expiry of limitation dates,
especially those set out in section 18 of the 2002 Limitations Act.