Does the limitation period apply to a non-fraudulent breach of trust resulting from an allegedly unauthorized contribution holiday?

British Columbia, Canada


The following excerpt is from Sneddon v. British Columbia Hydro and Power Authority, 2003 BCSC 1200 (CanLII):

In Bushau v. Rogers Cablesystems Inc. (2001), 83 B.C.L.R. (3d) 261, 2001 BCCA 16, the court considered the limitation period applicable to a non-fraudulent breach of trust resulting from an allegedly unauthorized contribution holiday. The court concluded that the facts did not support the conclusion that s. 3(3) applied. It concluded at ¶36: In my view, the fact that as a result of a contribution holiday, the trustee is able to use the income or corpus of the trust to pay ongoing benefits does not change this conclusion. There is still no conversion of trust property to the trustee's own use, nor a payment out of trust property that can be traced to a trustee or other person, nor a wrongful distribution of trust property. Thus I agree with the trial judge's finding that this portion of the plaintiffs' claim was governed by the six-year limitation provided in s. 3(5) of the Limitation Act, and that accordingly, whether or not the contribution holidays taken in 1984, 1985 and 1986 were illegal under the Regulation, this part of the action became statute-barred after 1992 at the latest.

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