A final release is a document used in various areas of law when the parties involved in litigation have reached a settlement of their issues. In exchange for settling the matter, the plaintiff will often be asked to sign a release waiving the defendant party’s liability in any future claims related to the matter at […]
Category Archives: Contract Disputes
Data Exclusion Clause Limits Insurance Coverage for Cyber Matters
As privacy and cybersecurity concerns grow in significance, digital breaches are a growing area of legal risk. A recent decision of the Ontario Court of Appeal made clear that traditional insurance policies may not extend coverage for cyber matters, potentially leaving businesses vulnerable. On March 15, 2021, the Court released its decision in Family and […]
The Duty of Good Faith in Contracts, Further Defined
The Supreme Court of Canada (SCC) established a duty of good faith in contractual performance in its precedent-setting 2014 decision of Bhasin v. Hrynew. In this decision, the court recognized an organizing principle of good faith which contractual parties must observe in order to perform their contractual duties honestly and reasonably and not capriciously. Since […]
Waiver of Tort as a Cause of Action or the Remedy for Disgorgement?
There has been an ongoing controversy in Canada’s courts over whether the doctrine of ‘waiver of tort’ was sufficient to create a cause of action on its own. The Supreme Court of Canada (SCC) had briefly considered the issue in Pro-Sys Consultants Ltd. v Microsoft Corporation, however, this decision did not end the debate, since […]
The Duties of Good Faith & Honest Performance
The Supreme Court of Canada (SCC) originally created a duty of “good faith in contractual performance” in its 2014 decision of Bhasin v. Hrynew. In the decision, the SCC recognized an organizing principle of good faith that parties generally must observe in order to perform their contractual duties honestly and reasonably and not capriciously or […]
The Anti-Deprivation Rule, Part 1: Fraud in Bankruptcy
Protecting or preserving assets during a time of insolvency is a natural temptation of debtors. Some even take a proactive approach and design contractual terms that aim to do much the same should insolvency ever arise in the future. However, when such terms are exercised, they run into possibly infringing the “anti-deprivation” rule. What is […]
Derivative Contracts: Speculation or Hedging?
The Supreme Court of Canada (SCC) recently released an important taxation decision dealing with how to characterize capital and income losses under a derivative contract. In MacDonald v. Canada, a taxpayer sought to deduct payments he had made to his bank as part of a loan arrangement. His position was that the payments were income […]
The Enforceability of Arbitration Clauses in Ontario
Whether in a shareholder agreement or an employment contract, the enforceability and permissible scope of an arbitration clause have been hot topics in Ontario courts in recent years. Below, we will look at how the courts have interpreted these issues and what it means for arbitration clauses in contracts going forward. What is an Arbitration […]
Force Majeure and Frustration in Contracts Following the COVID-19 Pandemic
COVID-19 has clearly had a significant adverse impact on the economy of Ontario, Canada and the global economy. Given the impact of social isolation and physical distancing, and the closure of non-essential businesses, the reality is many individuals and businesses will be unable to fulfil their ongoing contractual commitments. What are the available legal defences? […]
The Importance of Sufficiently Proving Damages
In civil litigation for breach of contract, establishing a breach is only part of the battle. The primary remedy for a breach of contract is an award of damages, in an amount sufficient to put the aggrieved party into a position it would have been if not for the breach. In order to secure an […]