Ontario passes Bill to limit certain causes of action relating to COVID-19

On Monday, November 20, 2020, Bill 218, Supporting Ontario's Recovery and Municipal Elections Act, 2020 (the “Act”) received Royal Assent and came into force the same day.

The Act provides that no cause of action arises against any person as a direct or indirect result of an individual being or potentially being infected with or exposed to COVID-19 on or after March 17, 2020 provided that the person acted or made a good faith effort to act in accordance with:

• applicable public health guidelines relating to COVID-19;
• federal, provincial, and municipal laws relating to COVID-19; and
• the act or omission of the person does not constitute gross negligence.

The Act broadly defines the following key terms:

• “person” includes a reference to any individual, corporation or other entity, and includes the Crown in right of Ontario;
• “good faith effort” includes an honest effort, whether or not that effort is reasonable;
• “public health guidance” means advice, recommendations, directives, guidance or instructions given or made in respect of public health, regardless of the form or manner of their communication.

Moreover, any cause of action that would otherwise not arise under the Act that had already been commenced when the Act came into force is deemed to be dismissed, without costs.

While this is certainly positive news, it remains important and necessary for organizations to monitor and adhere to public health guidelines and applicable restrictions placed on the operations of certain businesses because the Act does not protect the acts or omissions of a person that:

• occurred while a law required the person’s operations to close, in whole or in part; and
• relate to an aspect of the person’s operations that was required to close under the law.

There are notable exceptions to the Act that pertain to employers. The “no cause of action” provisions of the Act described above do not apply to certain causes of actions by employees, including claims related to the actual or potential exposure to COVID-19 that occurred in the course, or as a result, of employment or in the performance of work for or supply of services, as well as claims ‎under the Workplace Safety and Insurance Act, 1997.

We will continue to monitor and provide updates as soon as they become available. The COVID-19 situation is rapidly evolving with new measures being adopted ‎or modified at both ‎the ‎federal and provincial level. For further information, please consult our ‎Coronavirus Resource ‎Centre or feel free to contact any member of our DLA Piper Canadian Employment and ‎Labour Law Service ‎Group, who will ‎ensure that you are acting upon the most up-to-date information.‎

This article provides only general information about legal issues and developments, and is not intended to provide specific legal advice. Please see our disclaimer for more details.