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Canada Contract Disputes

Bennett Jones LLP

Another Brick in the Wall: British Columbia Court of Appeal Confirms Framework for Determining Arbitral Jurisdiction

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For many reasons, including delays in the litigation system, choice of decision-maker and procedural flexibility, arbitration appears to be increasing in popularity as a means to resolve commercial disputes. But what happens...more

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How (Not) to Inadvertently Waive Your Right to Arbitrate

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The recent Ontario Court of Appeal decision in RH20 North America Inc v Bergmann, 2024 ONCA 445 serves as useful reminder that a party can inadvertently waive its right to arbitrate a dispute if the party takes a step in the...more

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How Liquid is Your Letter of Credit?

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Other than cash, a standby letter of credit (LoC) is generally considered the most liquid form of performance security. While beneficiaries generally believe drawing on an LoC should be a relatively simple process, many do...more

Houston Harbaugh, P.C.

Text Message Emoji Was Sufficient to Agree to Contract

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Agreeing to a contract does not require everyone sitting around a table signing documents; sending a “thumbs up” text message emoji was sufficient to agree to a contract according to a recent Canadian court decision....more

Bennett Jones LLP

Leaving the Court in Peace: the Alberta Court of Appeal Applies Narrow Limitations Exception for Declaratory Relief

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The Alberta Limitations Act does not apply to requests for "a declaration of rights and duties, legal relations or personal status". The exception is narrow. But as recently confirmed by the Alberta Court of Appeal in...more

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The High Cost of Cost Indemnification: A Warning

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A contractual indemnification can require the losing party in a lawsuit to pay the winning  party's full legal costs, the Alberta Court of Queen's Bench recently confirmed in Ruel v Rebonne, 2022 ABQB 486 [Ruel]. While courts...more

Bennett Jones LLP

B.C. Court of Appeal Decision Reminds Parties to Contracts to Read Before Signing

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Written contracts are an essential tool in confirming the terms of an agreement between two parties following an apparently successful negotiation. Yet too often parties treat such agreements as mere formalities, signing them...more

Littler

Supreme Court of Canada Clarifies Duty to Exercise Contractual Discretion in Good Faith

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In 2020, the Supreme Court of Canada (SCC) heard arguments in Wastech Services Ltd. v. Greater Toronto Sewage and Drainage District, 2021 SCC 7 (Wastech) and C.M. Callow Inc. v. Zollinger, 2020 SCC 45 (Callow), both of which...more

Blake, Cassels & Graydon LLP

La Cour suprême du Canada reconnaît l’obligation de bonne foi dans l’exercice d’un pouvoir discrétionnaire contractuel

Dans l’arrêt qu’elle a rendu dans l’affaire Wastech Services Ltd. c. Greater Vancouver Sewerage and Drainage (l’« affaire Wastech »), la Cour suprême du Canada (la « Cour suprême ») a reconnu l’obligation générale d’exercer...more

Blake, Cassels & Graydon LLP

Supreme Court of Canada Recognizes Duty of Good Faith in Exercise of Contractual Discretion

In Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage (Wastech), the Supreme Court of Canada (SCC) recognized a general duty to exercise contractual discretion in good faith. This bulletin summarizes the SCC’s...more

Bennett Jones LLP

Supreme Court of Canada Imposes Good Faith Limits on the Exercise of Contractual Discretion

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Good faith requires a party who has a discretionary power under a contract to exercise that discretion in accordance with the purposes for which it was conferred, the Supreme Court of Canada recently held in Wastech Services...more

BCLP

The Ontario Construction Act: building on the UK prompt payment and adjudication regime

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This summer I had the pleasure of traveling to Toronto and meeting Canadian construction lawyers to discuss the introduction of a prompt payment and adjudication regime in Ontario on 1 October 2019. As Matt Malloy outlined...more

Bennett Jones LLP

Supreme Court of Canada to Revisit Bhasin and Contractual Parties' Duty of Good Faith

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The Supreme Court of Canada (SCC) recently granted leave to appeal from the British Columbia Court of Appeal's decision in Greater Vancouver Sewerage and Drainage District v Wastech Services Ltd., 2019 BCCA 66. The case...more

Blake, Cassels & Graydon LLP

Quebec Court of Appeal Refines the Principles Applicable to the Characterization of Contracts

On February 15, 2018, the Supreme Court of Canada (SCC) dismissed leave to appeal in Station Mont Tremblant v. Banville-Joncas. In its decision, the Quebec Court of Appeal (Court) reaffirmed and elaborated on the principles...more

Bennett Jones LLP

The Good, the Bad and the Ugly: Candour in Ex Parte Applications

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A recent decision by the Alberta Court of Appeal (ABCA) reminds us that counsel must take care to provide a balanced view of both sides and not overreach in their asks when seeking an ex parte application, lest the court set...more

WilmerHale

Canadian Mining Company Strikes Gold in US Court

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Arbitration analysis: Steven Finizio and Manuel Casas at WilmerHale, consider the US District Court’s decision in Crystallex v Venezuela to uphold the $1.2bn damages award and suggest that the case reaffirms the deferential...more

Bennett Jones LLP

Alberta Court of Appeal Revisits Contractual Good Faith Principles

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The organizing principle of good faith and the duty of honest contractual performance laid down by the Supreme Court of Canada in Bhasin v Hrynew, 2014 SCC 71 [Bhasin] do not give courts the ability to review the fairness of...more

Bennett Jones LLP

Canadian Contractual Interpretation Just Got More Difficult

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Supreme Court of Canada Revives Correctness Test for Interpreting Standard Form Contracts - There is a new exception to the new Canadian approach for reviewing the interpretation of contracts: a trial court’s...more

Bennett Jones LLP

Alberta Judge Upholds No-Fault Provisions of CAODC Master Daywork Contract

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The Alberta Court of Queen’s Bench recently upheld the no-fault provisions of the standard form, Canadian Association of Drilling Contractors (CAODC) Master Daywork Contract (MDC) in Precision Drilling Canada Limited...more

Bennett Jones LLP

Have a Contract in Canada? Your Class Action Risk is Greater Than You May Think

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Non-Canadian companies: welcome to the Canadian class action party. In recent years, Canadians have increasingly begun to recognize and actively manage the major business risk posed by class actions, as more and more...more

Blake, Cassels & Graydon LLP

Ontario Court of Appeal Confirms Parties May Adjudicate Contract Disputes Through Application Despite Factual Questions

In a recent decision, Energy Fundamentals Group Inc. v. Veresen Inc. (Veresen), the Ontario Court of Appeal confirmed that, even where there are factual questions the court must resolve, a contract dispute may be adjudicated...more

Bennett Jones LLP

Dangers of a Self-Drafted Letter Agreement

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Court Unwilling to Impose a Reasonableness Limit on Expenditures - Exploration expenditures incurred to earn into a mining claim did not have to be reasonable, the B.C. Court of Appeal recently held in American Creek...more

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Operator Granted Summary Judgment Against Producer for Disputed Invoice Amounts

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A gas facility operator was recently awarded summary judgment for its unpaid invoices, even though the non-paying producer disputed the amounts owing and claimed various set-offs. In SemCAMS ULC v Blaze Energy Ltd, 2015 ABQB...more

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New Good-Faith Duty of Honesty in Contractual Performance Recognized by Supreme Court of Canada

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A new duty of honest performance has been imposed on all Canadian contracts by the Supreme Court of Canada. The notion of a general and independent doctrine of good faith performance of contracts has historically been...more

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