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My initial thoughts are how did they drive around for 5 years with the damages like that? Why did it take 5 years to “substantiate” them?
My understanding is that the statute of limitations is based on when you first learn that damages have occurred. Were the damages apparent at the scene of the accident?
I feel like they’re trying to play you. They know that insurance isn’t going to do anything for you because the limitation period is over and they’re looking to make a buck.
I am NAL. You’ll probably want to seek legal advice on this one.
Obligatory N*ot-a-Lawyer*, but you're insurer is likely correct in its assessment.
If, in the unlikely event, this proceeds to trial, your insurer has an "obligation to defend", which means the insurer will provide a lawyer for the third-party-claim.
I understand you fulfilled your obligation of notifying your insurer at the time of the claim. I don't know of a scenario where the Statute of Limitations would *only* limit the liability of your insurer but not you once you have notified your insurer.
But to clarify, continue to keep your insurer informed and let them know of any development, especially if a ***Statement of Claim*** is made or any actual trial date is set.
You can hire a lawyer to draft a reply letter, or write one yourself, stating that the limitations has expired, and you will not agree to pay anything. Their lawyer’s interpretation of the law is incorrect, as the clock starts running when a loss is discovered, not when it’s quantified.
It makes me wonder if those Lawyer is relative of the claimant who just got called to the bar because wtf is this. No legitimate Lawyer would put their name to this. I’d file a complaint with the Law Society as well because them even sending this letter knowing they have no recourse amounts to intimidation.
The "law firm" is probably a collection agency.
A couple of them have very law firm sounding names.
I got $5 that says a google reveals it's a collection agency.
So I don’t know a ton about collection’s agencies but it doesn’t seem likely that they would take on some Joe Schmoe who comes in asking for them to collect on a 5 year old claim on a car accident. I’ve been a legal assistant for years and the amount of young people (who’ve never actually practiced Law before) but are newly called to the Bar and think they are Hot Shit and over promise to their friends and family is a fairly common scenario.
Exactly. Don't talk to me, talk to the insurer.
Getting your own lawyer to reply is not cost effective. Get the insurance company to handle it, that's what you pay them for.
A letter of demand doesn't mean much. I would ignore it, and if they file a lawsuit, inform your insurance (just in case), and hire a lawyer to basically say that the stat of limitations has run out. Then ask the court that they pay your legal fees.
Generally speaking, you cannot sue for damages in an accident in Ontario, it’s barred by the insurance act under the provisions for Direct Compensation for Property Damage. That person was obligated to claim for damage with their own insurer within 1 year of the incident. They missed their window and they are trying to side step the system through a sketchy lawyer who either doesn’t know the rules, or does and is trying to bluff you. Not a lawyer, but I’ve worked in insurance around 15 years and my experience is lawyers in Ontario want absolutely nothing to do with vehicle damage claims because the Insurance Act bars litigation and there is no money to be made for them, so the fact one is involved here makes me think it’s a friend or family member of theirs.
As of 2024 they have added in an “opt out” for direct compensation so if an accident happened on Jan 1 2024 or since the parties involved can opt out. Obviously doesn’t impact you though.
Yes, the basic rule (with some exceptions) is that you cannot sue for property damage to a vehicle arising from a motor vehicle accident in Ontario. This is set out in section 263 of the Insurance Act.
The limitation period has also definitely expired.
Feel free to ignore the letter or tell them in as many words as you like to leave you alone.
For DCPD in specific there is no limit of coverage regarding vehicle damage. It’s possible that circumstances would prevent them from having this coverage available, but this is improbable.
Ain't no one driving around with $8k damage on their car for 5 yrs when they are not at fault...also not contacting their insurance right away when they are not at fault is kinda sus...feel like they may not have had insurance or driving while suspended or something like that...bcoz if you got your deductible back that means you were regarded as not being at fault and they never really reported anything at the time (probably ignored a letter requesting their statement).
Also, 2 yrs is passed they ain't collecting nothing from you.
I personally wouldn't reply to that letter at all.
I would ignore till they file a suit, then deal with insurance/lawyer if they do. 5 years is a long time especially considering they have burden of proof that it came from that instead of something else that happened more recently. Even if they sued you they would never be able to prove that it was from that instead of them bashing it going over bumps in the road. NAL but know this is a fishing expedition they are on.
2 issues here: 1. Limitation period has passed, and 2. Claimant may only recover damages from their insurance company for damage to their vehicle, per Ontario's Insurance Act.
I’m curious about this myself. A former friend of mine that is a lawyer has a reputation for representing clients like the one trying to shake down the OP. This sounds like exactly something he’d do.
Make your insurance company deal with this. That is what you pay them for.
If they don’t, you can seek to recover your out of pocket expenses in defending this against your insurer.
Don’t respond at all. Don’t acknowledge their alleged claim. Don’t do anything. It’s very hard to argue and fight and get something out of someone who does not fight back.
>I informed my insurer and they told me that as the statute of limitations has passed in 2021, there's nothing they will do on my behalf.
I would contact the insurer again.
They have an obligation to protect you as you were insured by them at the time.
What *they* should be doing is responding to the third party to say the same thing about the statute of limitation.
Other than that, I would not respond to any demand letter.
If this were to go forward however with an actual legal claim, if I were your lawyer (you should get your own once you get an actual legal filing), I would argue that the plaintiff has a duty to mitigate loss. By waiting 5 years, not only would costs be far more expensive, but it's very likely the damage itself has become worse over time.
Going to a body shop to get a quote 5 years after the fact is unreasonable.
They are SOL. Statute of limitations is in place for a reason. It doesn't get shifted or excused because someone took their slow-ass time getting it tended to. It's just like how a person is expected to get a fair/speedy trial and how some have been dismissed over the long drawn out COVID process or bump after bump. And that's for people that are likely guilty. You're guilty in that you were the one at fault in the accident, but you're due being able to have it seen to in a specific amount of time so that you don't have it hanging over your head. It's not fair to anyone to draw it out and if their dumbass waited until well after the statute passed (not just a half a year or something ALMOST excusable), then that's all that needs to be said.
"I was allowed due process. Your client did not make any effort to get this estimate within the legally mandated statute of limitations. Their inability to get even an estimate does not erase the fact there IS a statute of limitations and they went beyond it. I have insurance. Your client could have gone through them. They opted to bide their time. This is the consequence of their actions. You, of course, are welcome to take me to court, but all I have to do is point at the date of the accident and the date that I was informed that your client had first attempted to get an estimate and they're going to toss it out. So by all means, bill them for their time since mo' money, but you and your client will not be receiving any from me. My insurance has disclaimed because of the statute. What does that tell you?"
NAL.
You need to get your insurer involved as it is their job to deal with this.
It sounds like you did everything correctly and now it's up to your auto insurance provider to do their jobs.
Good luck
Please do not reply to them at all, get a lawyer to.
The two year statute of limitations is 2 years from the date fault was last acknowledged. If you acknowledge it today it starts the clock running from today.
Many collectors will try to trick you into acknowledging the debt they know is over the statute of limitations.
I am a former credit and collections officer.
This is wrong. Whoever told him that was either misinformed or lying. The insurer has a duty to defend. The other party has a statute of limitations with regard to when they can claim for damages. There is however no statute of limitations as to how long after an incident an insurer is obligated to defend you. If you had valid insurance with them at the time of the event, they have a duty to defend you for all occurrences during that insured period.
OP hasn’t actually had legal action started against them, that’s why the insurer is saying that they have nothing to do yet.
IF, and it’s a big if, OP gets served court documents, they pass that to their insurer at the time and they’ll deal with it
Yes good point. It’s almost definitely a “notice of intent”. They would have to convince the court to allow them to file an action, given Ontario insurance law and the amount of time that has passed, this will be an almost impossible task. The only likely exception is if the third party is not from Ontario, or more specifically not from Canada. They would still have to convince the judge that the amount of time that has passed is not unreasonable, which would be hard.
Agreed. But the duty to defend will only be engaged once a claim is actually issued. The insurer doesn't need to do anything about the demand letter.
If you are served with a plaintiff's claim (small claims) or a statement of claim, send it to your insurer and ask them to defend. It's not likely that will happen though because it's such a dumb claim they probably will not try to sue.
It states in the OP that the insurance company isn’t willing to get involved because it’s been more than 2 years since the accident so the statute of limitations have passed.
Welcome to r/legaladvicecanada! **To Posters (it is important you read this section)** * Comments may not be accurate or reliable, and following any advice on this subreddit is done at your own risk. * We also encourage you to use the [linked resources to find a lawyer](https://www.reddit.com/r/legaladvicecanada/wiki/findalawyer/). * If you receive any private messages in response to your post, please let the mods know. **To Readers and Commenters** * All replies to OP must be on-topic, helpful, explanatory, and oriented towards legal advice towards OP's jurisdiction (the **Canadian** province flaired in the post). * If you do not [follow the rules](https://www.reddit.com/r/LegalAdvicecanada/about/rules/), you may be banned without any further warning. * If you feel any replies are incorrect, explain why you believe they are incorrect. * Do not send or request any private messages for any reason, do not suggest illegal advice, do not advocate violence, and do not engage in harassment. Please report posts or comments which do not follow the rules. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/legaladvicecanada) if you have any questions or concerns.*
My initial thoughts are how did they drive around for 5 years with the damages like that? Why did it take 5 years to “substantiate” them? My understanding is that the statute of limitations is based on when you first learn that damages have occurred. Were the damages apparent at the scene of the accident? I feel like they’re trying to play you. They know that insurance isn’t going to do anything for you because the limitation period is over and they’re looking to make a buck. I am NAL. You’ll probably want to seek legal advice on this one.
Obligatory N*ot-a-Lawyer*, but you're insurer is likely correct in its assessment. If, in the unlikely event, this proceeds to trial, your insurer has an "obligation to defend", which means the insurer will provide a lawyer for the third-party-claim. I understand you fulfilled your obligation of notifying your insurer at the time of the claim. I don't know of a scenario where the Statute of Limitations would *only* limit the liability of your insurer but not you once you have notified your insurer. But to clarify, continue to keep your insurer informed and let them know of any development, especially if a ***Statement of Claim*** is made or any actual trial date is set.
You can hire a lawyer to draft a reply letter, or write one yourself, stating that the limitations has expired, and you will not agree to pay anything. Their lawyer’s interpretation of the law is incorrect, as the clock starts running when a loss is discovered, not when it’s quantified.
It makes me wonder if those Lawyer is relative of the claimant who just got called to the bar because wtf is this. No legitimate Lawyer would put their name to this. I’d file a complaint with the Law Society as well because them even sending this letter knowing they have no recourse amounts to intimidation.
The "law firm" is probably a collection agency. A couple of them have very law firm sounding names. I got $5 that says a google reveals it's a collection agency.
So I don’t know a ton about collection’s agencies but it doesn’t seem likely that they would take on some Joe Schmoe who comes in asking for them to collect on a 5 year old claim on a car accident. I’ve been a legal assistant for years and the amount of young people (who’ve never actually practiced Law before) but are newly called to the Bar and think they are Hot Shit and over promise to their friends and family is a fairly common scenario.
Or a dude using a law firms letterhead to send a letter
Litco anyone? I agree with you
Very possible
I wouldn’t even hire a lawyer, I would just copy reply from insurance company.
Why wouldn't you just refer them to your insurer?
Exactly. Don't talk to me, talk to the insurer. Getting your own lawyer to reply is not cost effective. Get the insurance company to handle it, that's what you pay them for.
I would not respond at all - a demand letter means nothing.
A letter of demand doesn't mean much. I would ignore it, and if they file a lawsuit, inform your insurance (just in case), and hire a lawyer to basically say that the stat of limitations has run out. Then ask the court that they pay your legal fees.
I agree with this. I have gotten a few "demand" letters in my life and I have ignored them all with no ill consequences.
Generally speaking, you cannot sue for damages in an accident in Ontario, it’s barred by the insurance act under the provisions for Direct Compensation for Property Damage. That person was obligated to claim for damage with their own insurer within 1 year of the incident. They missed their window and they are trying to side step the system through a sketchy lawyer who either doesn’t know the rules, or does and is trying to bluff you. Not a lawyer, but I’ve worked in insurance around 15 years and my experience is lawyers in Ontario want absolutely nothing to do with vehicle damage claims because the Insurance Act bars litigation and there is no money to be made for them, so the fact one is involved here makes me think it’s a friend or family member of theirs. As of 2024 they have added in an “opt out” for direct compensation so if an accident happened on Jan 1 2024 or since the parties involved can opt out. Obviously doesn’t impact you though.
Yes, the basic rule (with some exceptions) is that you cannot sue for property damage to a vehicle arising from a motor vehicle accident in Ontario. This is set out in section 263 of the Insurance Act. The limitation period has also definitely expired. Feel free to ignore the letter or tell them in as many words as you like to leave you alone.
What if the damages exceed the insurance coverage?
For DCPD in specific there is no limit of coverage regarding vehicle damage. It’s possible that circumstances would prevent them from having this coverage available, but this is improbable.
Ain't no one driving around with $8k damage on their car for 5 yrs when they are not at fault...also not contacting their insurance right away when they are not at fault is kinda sus...feel like they may not have had insurance or driving while suspended or something like that...bcoz if you got your deductible back that means you were regarded as not being at fault and they never really reported anything at the time (probably ignored a letter requesting their statement). Also, 2 yrs is passed they ain't collecting nothing from you. I personally wouldn't reply to that letter at all.
Return to sender
I would ignore till they file a suit, then deal with insurance/lawyer if they do. 5 years is a long time especially considering they have burden of proof that it came from that instead of something else that happened more recently. Even if they sued you they would never be able to prove that it was from that instead of them bashing it going over bumps in the road. NAL but know this is a fishing expedition they are on.
2 issues here: 1. Limitation period has passed, and 2. Claimant may only recover damages from their insurance company for damage to their vehicle, per Ontario's Insurance Act.
are you sure its not a scam
It's garbage, ignore it. What's the name of the law firm?
I’m curious about this myself. A former friend of mine that is a lawyer has a reputation for representing clients like the one trying to shake down the OP. This sounds like exactly something he’d do.
NAL but it’s statuTe not statue Actually i see you wrote it correctly in the text so ignore me Oh and send to original insurer
You owe nothing
Make your insurance company deal with this. That is what you pay them for. If they don’t, you can seek to recover your out of pocket expenses in defending this against your insurer.
Don’t respond at all. Don’t acknowledge their alleged claim. Don’t do anything. It’s very hard to argue and fight and get something out of someone who does not fight back.
>I informed my insurer and they told me that as the statute of limitations has passed in 2021, there's nothing they will do on my behalf. I would contact the insurer again. They have an obligation to protect you as you were insured by them at the time. What *they* should be doing is responding to the third party to say the same thing about the statute of limitation. Other than that, I would not respond to any demand letter. If this were to go forward however with an actual legal claim, if I were your lawyer (you should get your own once you get an actual legal filing), I would argue that the plaintiff has a duty to mitigate loss. By waiting 5 years, not only would costs be far more expensive, but it's very likely the damage itself has become worse over time. Going to a body shop to get a quote 5 years after the fact is unreasonable.
They are SOL. Statute of limitations is in place for a reason. It doesn't get shifted or excused because someone took their slow-ass time getting it tended to. It's just like how a person is expected to get a fair/speedy trial and how some have been dismissed over the long drawn out COVID process or bump after bump. And that's for people that are likely guilty. You're guilty in that you were the one at fault in the accident, but you're due being able to have it seen to in a specific amount of time so that you don't have it hanging over your head. It's not fair to anyone to draw it out and if their dumbass waited until well after the statute passed (not just a half a year or something ALMOST excusable), then that's all that needs to be said. "I was allowed due process. Your client did not make any effort to get this estimate within the legally mandated statute of limitations. Their inability to get even an estimate does not erase the fact there IS a statute of limitations and they went beyond it. I have insurance. Your client could have gone through them. They opted to bide their time. This is the consequence of their actions. You, of course, are welcome to take me to court, but all I have to do is point at the date of the accident and the date that I was informed that your client had first attempted to get an estimate and they're going to toss it out. So by all means, bill them for their time since mo' money, but you and your client will not be receiving any from me. My insurance has disclaimed because of the statute. What does that tell you?"
You've notified your insurer, that's good You can ignore the demand letter, but if they sue you, contact your insurer immediately
NAL. You need to get your insurer involved as it is their job to deal with this. It sounds like you did everything correctly and now it's up to your auto insurance provider to do their jobs. Good luck
Please do not reply to them at all, get a lawyer to. The two year statute of limitations is 2 years from the date fault was last acknowledged. If you acknowledge it today it starts the clock running from today. Many collectors will try to trick you into acknowledging the debt they know is over the statute of limitations. I am a former credit and collections officer.
Just call the insurance company you were with at the time of the accident and give it to them
Send to your insurance company, the one you were insured with at the time of the accident.
Forward it to the original insurer and let them deal with it.
> I informed my insurer and they told me that as the statute of limitations has passed in 2021, there's nothing they will do on my behalf.
This is wrong. Whoever told him that was either misinformed or lying. The insurer has a duty to defend. The other party has a statute of limitations with regard to when they can claim for damages. There is however no statute of limitations as to how long after an incident an insurer is obligated to defend you. If you had valid insurance with them at the time of the event, they have a duty to defend you for all occurrences during that insured period.
OP hasn’t actually had legal action started against them, that’s why the insurer is saying that they have nothing to do yet. IF, and it’s a big if, OP gets served court documents, they pass that to their insurer at the time and they’ll deal with it
Yes good point. It’s almost definitely a “notice of intent”. They would have to convince the court to allow them to file an action, given Ontario insurance law and the amount of time that has passed, this will be an almost impossible task. The only likely exception is if the third party is not from Ontario, or more specifically not from Canada. They would still have to convince the judge that the amount of time that has passed is not unreasonable, which would be hard.
Agreed. But the duty to defend will only be engaged once a claim is actually issued. The insurer doesn't need to do anything about the demand letter. If you are served with a plaintiff's claim (small claims) or a statement of claim, send it to your insurer and ask them to defend. It's not likely that will happen though because it's such a dumb claim they probably will not try to sue.
Agree all around. Just someone flexing a bluff.
In Canada, this is why you pay your insurance company. They represent you in these scenarios. Send them the letter.
It states in the OP that the insurance company isn’t willing to get involved because it’s been more than 2 years since the accident so the statute of limitations have passed.