What is the definition of fraudulent concealment?

Ontario, Canada


The following excerpt is from Samuel v. Benson Kearley IFG, 2020 ONSC 1123 (CanLII):

Fraudulent concealment is defined as “conduct which, having regard to some special relationship between the two parties concerned, is an unconscionable thing for the one to do towards the other”: Guerin v. The Queen, 1984 CanLII 25 (SCC), [1984] 2 SCR 335, at p. 390.

A summary of the elements of fraudulent concealment is found in the decision of Perell J. in Colin v. Tan, 2016 ONSC 1187, at paras. 44-47: Fraudulent concealment will suspend a limitation period until the plaintiff can reasonably discover his or her cause of action. The constituent elements of fraudulent concealment are threefold: (1) the defendant and plaintiff have a special relationship with one another; (2) given the special or confidential nature of the relationship, the defendant’s conduct is unconscionable; and (3) the defendant conceals the plaintiff’s right of action either actively or the right of action is concealed by the manner of the wrongdoing. Fraudulent concealment includes conduct that having regard to some special relationship between the parties concerned is unconscionable. For fraudulent concealment, the defendant must hide, secret, cloak, camouflage, disguise, cover-up the conduct or identity of the wrongdoing. The word fraudulent is used in its equitable (not common law) sense to denote conduct by the defendant such that it would be against conscience for him or her to avail himself of the lapse of time. There is a causative element to the doctrine of fraudulent concealment because the legal policy behind fraudulent concealment is that if the plaintiff was unaware of his or her cause of action because of the wrong of the defendant, then the court will refuse to allow a limitation defence; i.e., the plaintiff must be ignorant of the cause of action because of the misconduct of the defendant. [Citations omitted]

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