Federal government looking to extend legal deadlines

OTTAWA – With many courthouses closed for COVID-19, Canadians are facing ticking deadlines that can force people into divorce deals they don’t want or bankruptcies they could have avoided, but the Liberal government is promising new legislation to stop the clock.

Justice Minister David Lametti sent a letter to critics in all of the opposition parties Wednesday with a proposal for a new piece of legislation that would put some of these timelines on hold until September.

“Deadlines that have not been extended risk forcing people to choose between ignoring public health advice and protecting their legal interests by preparing for or attending court,” said Lametti in the letter.

The proposed legislation would extend timelines for nearly two dozen sets of federal rules, but Lametti cited the divorce act as one particular issue. Under existing legislation someone going through a divorce has 30 days to appeal if they disagree with a judgment, but with many courts largely closed, Lametti said that could be a real challenge.

Federal bankruptcy legislation also gives businesses a set timeline to file a restructuring proposal and if they miss that deadline they are forced into bankruptcy even when a viable business may have remained.

The proposed bill would also extend other deadlines in federal legislation. The government would get a longer period to review foreign investments in Canadian companies. Gun owners would have their expiring licenses extended and several government pension plans would have longer appeal periods for settling disputes.

Lametti said people representing themselves in court are facing the biggest challenges, because they don’t have the information to deal with these changes. He said the issues has to be addressed.

“Canadians and Canadian businesses may also simply lose their right to sue because of the impediments caused by COVID-19.”