Please assist me with this issue regarding a Statutes of Limitations Act. (As per the Jan 2004 update).

Say for instance in July 2004 a couple in a relationship (not married just dating) Sally and John, John gave sally a gift of $10,000.00 in the form of a cheque in her name. John & Sally break up 6 months later. John files for bankruptcy in July 2005 but does not disclose the gift to Sally to his trustee. John later on in July 2007 sues Sally for the $10,000 claiming that it was a loan. The Court determines that it was a loan based on the fact that sally and John were not married and any gifts above $1,000 exchanged between the 2 during their relationship is considered by the Ontario courts to be a loan after the 2 ended their relationship. John asked for the money back 3 years later and decided to sue Sally for the $10,000.00. According to the SOL, does John have the legal right to sue Sally after 3 years?

If the courts have ruled it was a loan and not a gift, you can appeal that decision.

The 2 years start once default kicks in.

The loan was made July 2004. When did it have to be paid back by? July 2006 perhaps? That would then have the SOL going to July 2008.

Some questions though for you to ponder.

A boyfriend gives his girlfriend a cheque for 10,000. Does she not find this odd? Why would he do this, especially when he is having severe financial troubles (he did declare bankruptcy a year later).

The girlfriend can always appeal the court decision of gift vs. loan

As for how long this “loan” was suppose to last…what did the boyfriend say it was for? All that being said, if this does progress further, the girlfriend can once again argue gift, and then could argue SOL, saying a reasonable period to pay back the loan is 18 months. Therefore, the SOL has elapsed.