The Court of Appeal held that business interruption claims are not subject to a rolling limitation period. The appellant insureds commenced two actions for insurance coverage under a CGL policy issued by the respondent insurer, which provided coverage for “direct loss from any Peril” including business interruption loss and loss of property due to theft or wrongful handling. The trial judge dismissed the first action on its merits. In the second action, the trial judge dismissed the property claim as time-barred, but allowed the business interruption claim to proceed in part, reasoning that business interruption claims were subject to a rolling limitation period which preserved some of them. The insureds appealed on other issues and the insurer cross-appealed on the rolling limitation issue. The Court of Appeal dismissed the appeals but allowed the cross appeal, holding that business interruption claims are not subject to a rolling limitation period. The question is not whether the plaintiff is continuing to suffer a loss or damage, but whether the defendant has engaged in further breaches of contract. The limitation period started on the day the insureds knew that they had suffered a loss or damage, despite the fact that the extent of damages may not have been known to them with precision.
