November 12, 2014

The SCC releases its decision in Bhasin v. Hrynewa case which originated in Alberta, and decides that all contracts in Canada should be interpreted as imposing an obligation of good faith. Says the Court:

The key issues on this appeal come down to two, straightforward questions: Does Canadian common law impose a duty on parties to perform their contractual obligations honestly? And, if so, did either of the respondents breach that duty?  I would answer both questions in the affirmative. Finding that there is a duty to perform contracts honestly will make the law more certain, more just and more in tune with reasonable commercial expectations. It will also bring a measure of justice to the appellant, Mr. Bhasin, who was misled and lost the value of his business as a result.


A few stories and posts finding their way online already regarding the case:


Alberta will be stuck defending an anti-fracking lawsuit brought by Jessica Ernst. And has to pay treble costs for its failed efforts to punt the case:


Interesting case out of Ontario dealing with cumulative misconduct giving rise to just cause for termination:

 

 

 

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