Statute of Limitations Alberta: How Long You Have to Sue

If someone in Alberta owes you money, you do not have forever to file a claim. The Limitations Act (RSA 2000, c L-12) sets hard deadlines, and once they pass, your right to sue is gone — regardless of how strong your case is.

The Two-Year Discovery Rule

Under Section 3(1)(a) of the Limitations Act, you have two years from the date you knew, or reasonably should have known, three things: that the loss happened, that it was caused by the other person's actions, and that it was serious enough to justify a court claim.

For most straightforward disputes — an unpaid invoice, a contractor who took a deposit and walked away, a security deposit not returned — the clock starts on the day the payment was due and was not made, or the day the damage occurred. You do not get extra time because you were hoping the other side would eventually pay.

But the discovery rule does help when the harm is not immediately apparent. If a renovation defect is hidden behind drywall and only becomes visible two years after the work was done, the clock starts when you discover the defect (or when a reasonable person would have), not when the work was completed.

The Ten-Year Ultimate Limit

Section 3(1)(b) creates a backstop: no claim can be brought more than 10 years after it arose, regardless of when you discovered the problem. This means even hidden defects have an outer boundary. If a contractor did defective work 11 years ago and you only just found out, you are out of time.

What Resets the Clock

The two-year clock can restart in limited circumstances. For debt claims, if the debtor acknowledges the debt in writing or makes a partial payment within the two-year window, the limitation period resets from the date of that acknowledgment or payment.

An email saying "I know I owe you and I'll pay next month" counts as a written acknowledgment. A $50 payment on a $5,000 debt restarts the entire two-year clock from the date of that payment.

What does not reset the clock: sending a demand letter, making phone calls, having informal settlement discussions, or threatening to sue. None of those actions pause or extend the limitation period.

Common Situations and Their Starting Points

Unpaid invoice — The clock starts on the invoice due date, or the date payment was demanded if there was no written due date.

Contractor deposit — The clock starts when it became clear the work would not be done — the date the contractor stopped responding, missed a deadline, or told you they would not finish.

Security deposit — The landlord generally has 10 days after you give up possession to return the deposit or provide a statement or estimate. If only an estimate is provided, a final statement and any balance are due within 30 days after the tenancy ends. The limitation clock follows the discovery rule above, based on when you knew or reasonably ought to have known about the loss and its cause.

Vehicle private sale — If a private seller misrepresented the condition of a vehicle, the clock starts when you discover the misrepresentation, not the date of purchase.

Filing Before the Deadline

Your Civil Claim must be officially filed at the court registry before the limitation period expires. "Filed" means the clerk has accepted and stamped Form CTS1461. Dropping the form in the mail on the last day does not count — it must be in the registry's hands.

If your limitation period is about to expire and you are not ready to file, file anyway. You can always negotiate a settlement or refine your case after the claim is on file. You cannot recover a deadline you missed.

The Alberta Civil Claim Guide includes a deadline calendar worksheet that maps every critical date in your claim — from the limitation deadline through service deadlines to the trial date.

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