Central Trust Co v Rafuse

Central Trust Co v Rafuse, [1986] 2 SCR 147 is a leading decision of the Supreme Court of Canada on liability of solicitors in negligence and breach of contract as well as the doctrine of discoverability under the statute of limitations.

Jack Rafuse and Franklyn Cordon were solicitors who had been hired by a company, which had purchased the shares of Stonehouse Motel and Restaurant Ltd.

Having lost the case, Central Trust brought an action against the lawyers for negligence and breach of contract.

In their defence, Rafuse and Cordon claimed: These issues before the Court: LeDain J wrote the reasons for the majority.

The commencement of the limitation period was postponed by the common law "discoverability principle:" "A cause of action arises for purposes of a limitation period when the material facts on which it is based have been discovered or ought to have been discovered by the plaintiff by the exercise of reasonable diligence."