contract law

Aphria Inc. v. Canada Life Assurance Co.: Can the common law be changed with prospective-only effect?

In February 2026, the SCC heard the appeal in Aphria Inc. v. Canada Life Assurance Co. The question presented asks whether commercial landlords who reject a tenant’s lease repudiation are subject to the doctrine of mitigation. On its face the case seems to be of niche interest: significant for commercial property and contract lawyers, of course, but perhaps a dry topic for others. Far from it. As became apparent during oral arguments before the SCC, the appeal in Aphria puts in issue fundamental principles regarding the nature of common law decision-making.

APPEAL WATCH: Old Leases, Same Law? ONCA Reaffirms “No Duty to Mitigate” in Aphria

In June 2025, the Supreme Court of Canada granted leave to appeal the Court of Appeal for Ontario’s decision in Canada Life Assurance Company v. Aphria Inc,. The Court's decision reaffirms that when a commercial landlord does not accept a tenant's repudiation of a lease and insists the lease remain in full effect, the landlord has no duty to mitigate the resulting damages. This decision adheres to the binding authority of Highway Properties Ltd v Kelly, Douglas and Co Ltd., where the SCC outlined four actions a landlord can take in response to a tenant's fundamental breach.

APPEAL WATCH: The Opportunity to Clarify Contributory Fault in Contract Law and Revisit Summary Judgment Motions in Arcamm v Avison Young

The SCC has granted leave to appeal the decision in Arcamm v Avison Young, 2024 ONCA 925. The Court is expected to determine whether contributory fault governs the apportionment of damages arising from breach of contract, and to provide, for the first time in over a decade, renewed guidance on realizing the culture shift envisioned in Hryniak v Mauldin, 2014 SCC 7.

Contracts and Reconciliatory Justice: Quebec v Pekuakamiulnuatsh Takuhikan

In Quebec (Attorney General) v Pekuakamiulnuatsh Takuhikan, 2024 SCC 39 [PT], the Supreme Court of Canada (“SCC” or the “Court”) developed a test to determine when contracts between the state and Indigenous entities engage the honour of the Crown. Applying this test to tripartite agreements between Canada, Quebec, and the Pekuakamiulnuatsh First Nation, the Court found Quebec liable […]

Revisiting Misleading Silence in C.M. Callow Inc v Zollinger : Did the Supreme Court Make the Right Decision?

In 2020, the Supreme Court of Canada expanded the common law doctrine of good faith established in Bhasin v Hrynew, 2014 SCC 71 [Bhasin], by holding that misleading silence can breach the duty to perform one's contractual obligations honestly. An account of C.M. Callow Inc v Zollinger, 2020 SCC 15 [Callow] was previously reported on by TheCourt.ca. However, this commentary will explore how […]

Appeal Watch: SCC Revisits Bhasin and the Duty of Good Faith in Contract

Churchill Falls v Hydro-Quebec: Serving Contracts with a Twist of Unforeseeability

A lot can change in 65 years, and most of it is unforeseeable. Can a contract be renegotiated to reflect these changes? In Churchill Falls (Labrador) Corp v Hydro-Quebec, 2018 SCC 46 [Churchill Falls], Churchill Falls (Labrador) Corporation Limited (“CFLCo”) and the Quebec Hydro-Electric Commission (“Hydro-Quebec”) dispute a contract signed in 1969. CFLCo claims that their […]

Click and Consent: Douez v Facebook and Online User Agreements

Much like over 2 billion people globally, 19 million in Canada, and 1.8 million in British Columbia, Deborah Douez has a Facebook account. And much like two billion people before her, Ms. Douez clicked "I agree" to Facebook's terms and conditions when creating her Facebook account in 2007.

Rectification is Not Equity’s Mulligan: New Insights on the Law of Rectification in Tax Liability

The Supreme Court of Canada (“SCC”) has recently delivered two companion judgments, Canada (Attorney General) v Fairmont Hotels Inc., 2016 SCC 56 [Fairmont] and Jean Coutu Group (PJC) Inc. v Canada (Attorney General), 2016 SCC 55 [Jean Coutu], that substantially restrict the availability of the rectification remedy in Canada.

Styles v Alberta Investment Management Corporation : Understanding and Clarifying Bhasin

The case of Styles v Alberta Investment Management Corporation, 2017 ABCA 1, [Styles], began with the termination of the respondent without cause. The question in this case was: what sort of compensation is the respondent entitled to under his employment contract? At first glance, this case may seem like it falls squarely in the realm […]