Contracts

Intentions Matter: Excluding Liability for Statutorily Implied Conditions in Earthco v Pine Valley

In Earthco Soil Mixtures Inc v Pine Valley Enterprises Inc, 2024 SCC 20 [Earthco], the Supreme Court of Canada (“SCC”) affirmed that common law principles of contractual interpretation apply to exclusion clauses under the Sale of Goods Act, RSO 1990, c S1 [SGA]. While “express agreement” sufficient to oust SGA liability must include an explicit statement of joint intention, it does not require precise legal terminology or “magic words” (Earthco, para 98).

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 […]

Can't always get what you want: SCC to consider interpretation of insurance contracts in Trillium Mutual Insurance Company v Emond

In Trillium Mutual Insurance Company v Emond, 2023 ONCA 729 [Trillium], the Court of Appeal for Ontario (“ONCA”) upheld a term in an insurance policy which substantially limited the insured's recovery of rebuilding costs arising from compliance with regional building regulations. On appeal by leave [41077], the Supreme Court of Canada (“SCC”) will likely provide […]

Ponce: When an atmosphere of trust is betrayed

Introduction The two presidents of a Québec-based insurance group betrayed an atmosphere of trust with the majority shareholders. In Ponce v Société d’investissements Rhéaume ltée, 2023 SCC 25 [Ponce] the Supreme Court of Canada (“SCC”) showcased Québec’s requirement for courts to consider the spirit of contractual business relationships in deciding if a legal remedy is […]

Vanishing Horizons: Standard Form Contracts on Appeal in Bridging

The Ontario Court of Appeal (the “ONCA”) has provided fresh guidance on the applicable standard of review for a lower court’s interpretation of a standard form contract. Ontario Securities Commission v Bridging Finance Inc., 2023 ONCA 769 [Bridging] sheds light on the question of whether a standard form contract must have precedential value for an […]

Corner Brook (City) v Bailey: Interpreting Releases and Drafting Contracts

Justice Rowe of the Supreme Court of Canada (“SCC”) stated that Corner Brook (City) v Bailey, 2021 SCC 29 [Corner Brook] is about “the proper approach to interpreting the scope of a release” (Corner Brook, para 1). In a unanimous decision, the SCC determined that the general principles of contract law in Sattva Capital Corp. […]

Expulsion from Church Membership Not Justiciable, SCC Finds in Aga

On May 28, 2021, the Supreme Court of Canada (“SCC”) released a unanimous decision in the case of Ethiopian Orthodox Tewahedo Church of Canada St. Mary’s Cathedral v Aga, 2020 SCC 22 [Aga], which revolved around whether expulsion from a church could be reviewed by a court. Overturning the Ontario Court of Appeal (“ONCA”)’s decision, […]

Supreme Court discusses Good Faith in Exercising Contractual Discretion in Wastech v Greater Vancouver

Wastech Services Ltd v Greater Vancouver Sewerage and Drainage District, 2021 SCC 7 [Wastech] is the second case in a matter of months that the Supreme Court of Canada (“SCC”) has released relating to the “general organizing principle” of good faith in contracting. The SCC has recognized four doctrines as part of good faith in […]

Contract assigned to Hydro-Québec authorizes them to collect fees from Resolute FP Canada in Resolute FP Canada v Hydro-Québec

When a contract was signed almost 100 years ago and the original parties have been amalgamated into or become new entities, who are the parties to that contract, and can they act on it? In a nutshell, this is what was at issue in Resolute FP Canada Inc v Hydro-Québec, 2020 SCC 43 [Resolute v […]

A Low Threshold for Advancing Class Actions is Reaffirmed in Desjardins Financial Services Firm Inc v Asselin

In Desjardins Financial Services Firm Inc v Asselin, 2020 SCC 30 [“Desjardins”], the Supreme Court of Canada (“SCC”) engaged in a debate about how to properly assess the law of class actions in Quebec. While the words “respectfully disagree” were used by the majority and the dissent, the decision exhibits strong differences of opinion as […]