News & Analysis as of

Contract Interpretation Breach of Contract

Bennett Jones LLP

Bennett Jones Acts for CPKC in Setting Aside "Extraordinary" C$228 Million Award on Commercial Land Deal

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On July 2, 2025, the Court of Appeal of Alberta set aside a C$228 million judgment against Canadian Pacific Kansas City Limited (CPKC) and the Province of Alberta (the Province), arising from a failed real estate transaction....more

McGinnis Lochridge

Plain Language Meets Common Sense: Hidden Traps in Oil Patch Contract Interpretation

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What happens when a court reads your contract literally for one issue but decides what 'makes sense' for another? A geophysicist just found out. In early April 2025, the Amarillo Court of Appeals reversed in part and...more

A&O Shearman

When life gives you oranges, try to find an implied term

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The court implied a term into a contract for the supply of orange pulp that, in the absence of agreement between the parties, the price was to be fixed at a reasonable or market price. ...more

Cooley LLP

Court of Appeal Upholds Contract With Open Price Clause

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The English Court of Appeal’s judgment in KSY Juice Blends UK Ltd v. Citrosuco GmbH provides helpful guidance on the enforceability of long-term supply contracts where the price for part of the goods is left open to be agreed...more

Bradley Arant Boult Cummings LLP

Beware Misuse of Related-Claims Deemer Clauses in Claims-Made Policies

The hallmark of a claims-made liability policy is coverage exclusively for claims “first made” during the policy period, thus limiting the insurer’s risk to new claims asserted against the policyholder during a finite time...more

Sands Anderson PC

Wild Doctrines Can’t Be Broken: Why the Virginia Supreme Court Reined in Adequate Assurance

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In a May 2025 decision, Under Wild Skies, Inc. v. National Rifle Association of America, the Supreme Court of Virginia declined to incorporate the doctrine of “adequate assurance” (Restatement (Second) of Contracts § 251)...more

Zelle  LLP

Massachusetts Collapse Decision Highlights Importance of Careful Underwriting

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During the underwriting process, carriers should review affirmative coverages not only to ensure consistency with applicable exclusions but also to make sure that the coverages themselves are internally consistent. Failure to...more

Blake, Cassels & Graydon LLP

Limitation and Exclusion of Liability Clauses Under Quebec Law: Legal Guidance and Drafting Tips

The inclusion of limitation and exclusion of liability clauses in contracts entered into in Quebec requires an understanding of civil law and public order restrictions. Since the Supreme Court of Canada (SCC) ruling in...more

ArentFox Schiff

Don’t Take Your Forum Selection Clause for Granted

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It seems like every few months I hear about a situation where a company can’t enforce a forum selection clause as anticipated because of how it was drafted. Recently, an individual named Sidharth Lakhani fell victim to this...more

Cadwalader, Wickersham & Taft LLP

Delaware Chancery Court Finds Private Equity Majority Owner Not Liable to Minority Investors Where LLC Agreement Waived Fiduciary...

In a recent decision, the Delaware Court of Chancery dismissed breach of fiduciary duty claims asserted by minority unitholders in connection with the acquisition of CityMD by VillageMD.  In Kahn, et al. v. Warburg Pincus, et...more

Freeman Law

Is it Really Over? Contract Provisions that Survive Termination and Why.

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Just like many relationships, not all parts of a contract become things of the past when they expire or terminate. One way to ensure that a contractual right or duty applies post-termination is to specify that will it...more

Gray Reed

Two Words = Six Million Dollars: SCOTX Reverses Trial Court That Added Words to a Gas Transportation Agreement

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In American Midstream (Alabama Intrastate), LLC v. Rainbow Energy Marketing Corporation, the Texas Supreme Court held that the trial court improperly inserted the words “scheduled” and “physical” into a contract. By...more

DarrowEverett LLP

The Business Value of Engaging a Litigator Before You Are In Court

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The point when what began as a negotiation, or even a conversation, ripens into a full-blown lawsuit is rarely clear. Yet it is certainly clear that the courtroom is not where any of the parties to a once-promising business...more

Bennett Jones LLP

What Class Action Settlement Costs Will A Defendant’s Insurer Cover? The Ontario Superior Court of Justice Provides Some Answers

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In Tokio Marine & Nichido Fire Insurance v Honda Canada, 2025 ONSC 2856, the Ontario Superior Court upheld an arbitral panel's conclusion that an umbrella insurance policy covered settled class counsel fees, but not...more

Gray Reed

Texas Supreme Court Decides Who Must Produce to Maintain an Oil and Gas Lease

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In Cromwell v. Anadarko E & P Onshore LLC the Supreme Court of Texas did what it so often does: In order to provide “legal certainty and predictability”, the Court considered the plain language of a contract in order to...more

Bradley Arant Boult Cummings LLP

Whose Terms Govern? An Introduction to the Battle of the Forms

For construction lawyers, the Battle of the Forms presents a familiar fact pattern. A material supplier/seller provides a potential buyer with a price quote along with its standard terms. The buyer, usually a contractor or...more

McGinnis Lochridge

Texas Supreme Court Clarifies Limits of Shut-In Payment Notations in Lease Disputes

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In this case (Scout Energy Mgmt., LLC v. Taylor Properties, No. 23-1014, 2024 WL 5249490 [Tex. Dec. 31, 2024]), the Texas Supreme Court held that vague notations on shut-in royalty check receipts cannot modify an unambiguous...more

Gray Reed

Operator Excused from Texas Relinquishment Act Claims

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In Williams O & G Resources, LLC v. Diamondback Energy, Inc., a federal magistrate judge concluded that the Texas Relinquishment Act does not apply to public-school lands patented after 1931. The report and recommendation was...more

Blake, Cassels & Graydon LLP

Nouvelle clause contractuelle : Efforts raisonnables et diligents sur le plan commercial à la date la plus rapprochée possible

Dans l’affaire récente Epix Developments Ltd. v. Bonnis Development Union Street Limited Partnership (l’« affaire Epix ») (en anglais), un tribunal en Colombie-Britannique s’est penché sur l’interprétation d’une nouvelle...more

Mayer Brown

Legal Developments in Construction Law: May 2025

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1. ABSENCE OF NOVATION SINKS ADJUDICATION AWARD AGAINST ASSIGNEE - A contractor obtained an adjudication award against an assignee of its employer, which had gone into administration.  But was that assignee the correct...more

Warner Norcross + Judd

Michigan Court of Appeals Splits with Federal Courts and Holds Standard Stellantis Contract Terms Enforceable

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Earlier this week, the Michigan Court of Appeals issued its opinion in FCA US, LLC v. Kamax Inc., et al., the latest in a string of court decisions interpreting the enforceability of supply chain contracts in the wake of the...more

McGinnis Lochridge

All Depths or Just One Formation? Court Clarifies Royalty Conveyance in Rock River v. Pioneer

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This recent case (Rock River Minerals, LP v. Pioneer Nat. Res. USA Inc., No. 08-23-00216-CV, 2024 WL 4528917 [Tex. App.—El Paso Oct. 18, 2024, no pet. h.]) explored whether an assignment of an overriding royalty interest,...more

Blake, Cassels & Graydon LLP

From Court to Contract: Navigating Recent Supreme Court and Appellate Decisions

Recent Canadian case law is reshaping how legal drafters should approach contractual clauses. Key decisions, including rulings from the Supreme Court of Canada and appellate courts in British Columbia, Alberta, Ontario and...more

Robinson+Cole Construction Law Zone

The Importance of Indemnification Clauses in Managing Post-Completion Project Risk

Claims against design professionals often pose unique challenges when such claims are dually rooted in both tort and contract theories, and therefore subject to competing time limitations. In order to reconcile these...more

Gray Reed

Uri Force Majeure Cases Still Percolating

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Thought you’d heard the last of force majuere cases arising from Winter Storm Uri? Think again. In Marathon Oil Company v. Koch Services LLC. the question was how to measure damages suffered by Koch for Marathon’s...more

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