Supreme Court

Judge:

The Honourable Justice Robert W. Wright

Heard:

April 21, 2017 in Halifax, Nova Scotia

Written Decision:

May 10, 2017

Subject:

Crown immunity from Limitation of Actions Act in an action for debt.

Summary:

The defendant took out a student loan under the Nova Scotia Student Loan Program in 2001 and defaulted in late 2002.  The loan was guaranteed by the Province of Nova Scotia who, after making payment to the bank, exercised its subrogated rights to recover payment of the loan.  After protracted attempts by the province to arrange a payment schedule were unsuccessful, an action was commenced in 2014.  The action was defended by pleading the six year limitation period under the Canada Student Loans Act. 

The plaintiff thereupon brought a motion for summary judgment on evidence in which no genuine issue of material fact was raised by the defendant.  She merely relied on the limitation defence.     

Issue:

Does the defendant have a real chance of success in pleading a limitation of action defence, being a question of law?

Result:

The Canada Student Loans Act has no application to a student loan administered under the Student Aid Act and Finance Act of Nova Scotia. Neither could the defendant avail herself of the six year limitation period under s.2(1)(e) of the Limitation of Actions Act of Nova Scotia because of the presumption of Crown immunity at common law, as codified in s.14 of the Interpretation Act.  None of the exceptions to that rule applied in this case.

With the determination of that question of law, the defendant had no real chance of success in defending the action and summary judgment was granted accordingly.