Liability Limitation Periods Mandatory Insurance

Year
2006
Number
A1
Sponsor(s)
Langley City

WHEREAS joint and several liability can have a devastating financial impact on local governments; AND WHEREAS local governments have no way of mitigating their chances of a joint and several liability occurrence happening: THEREFORE BE IT RESOLVED that the Union of BC Municipalities petition the provincial government to reduce the ultimate limitation period from 30 years to 10 years; AND BE IT FURTHER RESOLVED that the provincial government require all participants in the building system to have insurance.

Provincial Response

Ministry of Forests and Range and Minister Responsible for Housing The Province of British Columbia Province is aware of the financial effects of joint and several liabilities on defendants in construction litigation. The Provinces Modernization Strategy Strategy will aim to rationalize the regulation of the construction and housing industry. The Strategy will consist of five inter-related projects with a goal towards balancing system benefits and accountabilities among all key building participants. As part of this Strategy, a Liability and Risk Project has goals of reducing inequity in the liability system, and enforcing accountability by ensuring all building participants can cover their share of liability if a claim is made. The Liability and Risk Project will examine options related to changes in the general ultimate limitation period and government mandated liability insurance. The Province will be holding public consultations and meeting with stakeholders, including local governments, to discuss these issues in late 2006 and spring 2007. Ministry of Attorney General The Ministry of Attorney General Ministry will be reviewing the Limitation Act. The Ministry intends to discuss changes in this area with stakeholders and the Union of British Columbia Municipalities will be invited to participate in the consultations once they are underway.

Convention Decision
Endorsed as Amended