Two Legal Traditions, Ten Provincial Systems
Civil procedure, limitation and enforcement are provincial, so the debtor's province determines the route. Nine provinces follow the common law; Quebec applies its own Civil Code, with proceedings conducted in French and a distinct procedural culture. Insolvency, by contrast, is federal under the Bankruptcy and Insolvency Act, which gives one uniform route regardless of province.
Two Years, and It Starts on Discovery
Ontario, Alberta, British Columbia and most other common law provinces have adopted modern limitations statutes setting a basic period of two years, running from when the claim was or ought reasonably to have been discovered. Quebec applies three years under its Civil Code.
For a supplier this is unusually tight. A claim that would still be comfortably alive in England after five years of intermittent chasing is dead in Ontario. Where a Canadian receivable has been rolling forward through several quarters of promised payment, the limitation position is the first thing to establish - before deciding whether to continue negotiating.
Retention of Title Needs Registering
As in Australia, a retention of title clause is treated as a security interest and must be registered - under the applicable provincial PPSA, or the RDPRM in Quebec - to be effective against a trustee in bankruptcy or a competing secured party.
An unregistered reservation of ownership generally fails when the customer becomes insolvent, leaving the supplier unsecured. For anyone shipping regularly into Canada this is a routine filing that materially changes recovery prospects, and its absence is worth knowing before deciding how much to invest in pursuing a struggling debtor.
How Long Does a Canadian Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Demand letter Formal demand, negotiation | 2–5 weeks | Low |
| Court claim Provincial superior court, undefended | 3–8 months | Medium |
| Defended proceedings Discovery, motions, trial | 1–3 years | High |
| BIA petition Federal insolvency route | 2–5 months | Medium |
| Enforcement Garnishment, writ of seizure and sale | 2–6 months | Medium |
Costs may be partially recoverable in most provinces on a tariff basis, unlike in the United States - a material difference when weighing whether to litigate a cross-border North American claim.
A Different System Inside the Same Country
Quebec is not a common law province with local variations; it is a civil law jurisdiction with its own Civil Code, its own Code of Civil Procedure and proceedings conducted in French. Contract interpretation, prescription and enforcement all follow that code rather than common law authority.
A creditor with debtors in both Montreal and Toronto is dealing with two legal systems, not one country. Documents, demands and strategy have to reflect that, and assuming otherwise is a common source of wasted cost.
How Does SXB Global Handle a Canadian Case?
We establish the province and the date the claim became discoverable before anything else, because two years moves quickly and much Canadian recovery fails on timing rather than merit. We also ask whether you supplied on retention of title and whether it was registered. Contact is conducted in English or French according to the province. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.