Contracts form the basis of every business relationship. Contracts can be customized to fit the needs of the parties who choose to enter them. However, it is not uncommon for parties to default on their contractual obligations, leading to contract disputes and litigation. In the recent case of 10443204 Canada Inc. v. 2701835 Ontario Inc., […]
Category Archives: Contract Disputes
Non-Payment Triggers Re-Entry for Commercial Landlords
When a prospective buyer defaults on deposit payments, the seller has the option to provide some leniency and perhaps amend the terms of the Agreement of Purchase and Sale. But what happens when the buyer defaults both on the deposit and on commercial rent? When commercial real estate and lease agreements collide, it can be […]
The Impact of Post-Breach Events on Damages for Breach of Contract
In Ontario, there is a legal presumption that damages for breach of contract are calculated from the date of the breach. In some cases, however, it is possible to set this presumption aside when it would be unfair to use the date of breach as the basis for calculation. In a recent case from the […]
The “Innocent Insured” Clause in the Insurance Act is not Applicable Retroactively
While property insurance coverage applies to a specific property, it may cover several insured parties. For example, depending on the policy, home insurance might cover multiple members of a single-family, several roommates, and/or tenants who rent a room or a basement unit. This is helpful in that the coverage will extend to each person noted […]
Disgorgement as a Remedy for Breach of Fiduciary Duty
Legal remedies in a civil case where one party has profited from wrongdoing to another party, such as civil fraud or breach of fiduciary duty, will generally result in damages being awarded to the wronged party. Often, the plaintiff in such a case has suffered a financial loss due to the defendant’s actions, and a […]
Court Certifies Class Action Against Uber
We have been watching the progress of the proposed class action proceeding between ‘gig economy’ drivers and Uber, an international ride share and food delivery service. To date, the litigation has primarily focused on whether the action could proceed in Canada, or if the drivers would be required to take the dispute to mandatory arbitration […]
SCC Provides Guidance on Interpreting the Wording of a Release
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 […]
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 […]