Tolling in Ontario: When Can the Limitation Period Clock Be Paused?

The two-year limitation period in Ontario keeps running whether you are ready for it or not. Negotiations are dragging on. You are waiting on a medical report. The other side keeps promising to make things right. Does any of that stop the clock?

Sometimes. Tolling is the legal concept that describes circumstances under which the limitation period is suspended — paused — so that time during the tolling period does not count toward the deadline. It is one of the most important tools available to potential plaintiffs who are not ready or able to sue but do not want to permanently lose their rights.

This article explains when Ontario law permits the clock to be paused, how each tolling mechanism works, and the significant risks you face if you assume tolling applies when it does not.

What "Tolling" Means

"Tolling" comes from old English legal language meaning to "take away" or suspend. In modern Ontario litigation, it means that for a defined period, the limitation clock is not running — and when the tolling period ends, you pick up with whatever time you had left, not starting fresh.

It is a narrow remedy, not a general escape valve. Courts do not suspend limitation periods simply because a plaintiff was busy, unaware, or hoped the matter would resolve without litigation.

Method 1: Agreement Between the Parties

Ontario's Limitations Act, 2002 permits the parties to a claim to agree in writing to extend or suspend the applicable limitation period, provided neither party is a consumer for the purposes of the agreement. As of writing, parties can extend the period but cannot shorten it below what the Act provides in most consumer contexts.

This means that if you and the other side sign a written tolling agreement — sometimes called a standstill agreement — you can preserve your claim while you negotiate, investigate, or wait for circumstances to change.

The Critical Lesson About Tolling Agreements

Many people assume that because both sides are "talking" or "in negotiations," the clock is paused. It is not — unless there is a formal, signed agreement.

Verbal assurances ("we're working on it," "don't worry about the deadline," "we'll pay you before you need to sue") do not pause the limitation period. Even a letter expressing willingness to negotiate is not the same as a formal written standstill.

If you want to pause the clock while negotiating, get the agreement in writing and have a lawyer review it.

Method 2: Incapacity

The Limitations Act, 2002 protects people who are unable to manage their own legal affairs. The limitation period does not run during any period in which a person is incapable of commencing a proceeding because of a physical, mental, or psychological condition — provided they do not already have a litigation guardian or other representative with authority to act.

When the incapacity ends, the clock resumes. This is not a grant of unlimited time; it is a suspension for the duration of the incapacity.

What counts as incapacity is fact-specific and may require medical evidence to establish. Do not assume that illness or emotional distress automatically tolls the clock — the legal threshold is specific.

Method 3: Minors (Discussed More Fully in a Separate Article)

Related to incapacity: limitation periods for claims by minors are generally tolled until the minor reaches the age of majority. This is discussed in detail in our article on limitation periods for minors and incapable persons.

Method 4: Undiscovered Claims and the Discoverability Bridge

While not technically "tolling" in the classic sense, the discoverability rule functions similarly: the two-year period does not start running until the claim is discovered (or ought to have been discovered). During the period before discovery, the clock simply has not started, rather than having started and then being paused.

The practical effect is the same: if you did not know about your claim, you are not out of time merely because years have passed since the underlying event. But the ultimate 15-year period still caps things — even an undiscovered claim cannot be brought after the 15-year ultimate period expires.

What Does Not Toll the Limitation Period

This is the list that catches people off guard:

• Active negotiations — the clock runs even if both sides are earnestly trying to settle
• Waiting for a response from the other side — an unreturned phone call does not pause time
• Not knowing you had a legal claim — ignorance of the law is generally not a basis for tolling
• Financial hardship — being unable to afford a lawyer does not stop the clock
• Ongoing mediation or alternative dispute resolution (unless the parties have agreed to toll the period)
• Claiming you were distracted by other problems — courts apply an objective reasonableness standard

The Practical Danger: Assuming You Have More Time Than You Do

The most common tolling misconception: a plaintiff believes the clock was paused during settlement negotiations. When the negotiations collapse — or the defendant simply stops responding — the plaintiff discovers the limitation period has already expired.

At that point, there is generally no remedy. The claim is extinguished. The other side can move to dismiss even before a hearing on the merits.

The safest approach is to treat the limitation period as actively running at all times unless you have a written, lawyer-reviewed agreement confirming it is paused.

Getting a Written Standstill Agreement

If you are in genuine, productive negotiations and both sides would prefer not to litigate right now, a standstill agreement is a legitimate and sensible option. It typically specifies:

• The claims covered by the standstill
• The duration of the suspension
• How the agreement may be terminated, including notice provisions
• What happens to the remaining limitation period after the standstill ends

These agreements require the other side's cooperation. If the other side is reluctant to sign one, that may itself be a signal to issue a claim now and let negotiations continue in the shadow of litigation.

Frequently asked questions