Does sending a demand letter pause the limitation period for my claim in Ontario?

No. Sending a demand letter does not pause, suspend, or restart the limitation period for your legal claim in Ontario. Under the Limitations Act, 2002, the general rule is that you have two years from the date you discovered — or ought to have discovered — your claim to start a court proceeding. That clock keeps running regardless of whether you send demand letters, exchange emails, or engage in settlement negotiations.

This is a common and costly misunderstanding. People sometimes spend months writing letters and waiting for responses, unaware that their two-year window is closing. If you reach a deadline and court proceedings have not been commenced, you may lose your right to sue entirely, regardless of how meritorious your claim is.

There are limited circumstances where the limitation period can be suspended — for example, when the defendant fraudulently conceals a claim, or under certain agreements — but a demand letter is not one of them. Some limitation periods differ from the general two-year rule depending on the type of claim, so it is important to identify the applicable period early.

If you are contemplating a dispute, consult with a lawyer promptly. Do not rely on ongoing negotiations to protect your right to sue.