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Author: Jassmine Girgis Page 7 of 8

B.A. (Calgary); JD (With Distinction) (Western); LL.M. (Cambridge). Associate Professor. Member of the Alberta Bar. Please click here for more information.

Fundamental Breach and Repudiatory Breach of Contract

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Case commented on: John Barlot Architect Ltd. v 413481 Alberta Ltd., 2013 ABQB 388

The doctrine of fundamental breach has caused much confusion, in part because of its relationship to the doctrine of repudiatory breach. The two are entirely different doctrines, but as I tell my students, it doesn’t help that sometimes, the doctrines are merged and the terms used interchangeably.

In effect, the two doctrines are quite separate and the finding of one type of breach leads to a significantly different outcome than a finding of the other. The problem occurs when, as in this decision, the two doctrines are combined and there is no clear indication of the differences between the two. That does not necessarily render the judgment incorrect but it does make for inaccurate references and confusing terminology.

This post will focus on the doctrines of fundamental and repudiatory breach. A shortened version of the facts will be provided, as not all of them are necessary for the purpose of this post.

Beyond the Four Corners of the Contract: The Parol Evidence Rule, Implied Terms and the Duty of Good Faith

PDF Version: Beyond the Four Corners of the Contract: The Parol Evidence Rule, Implied Terms and the Duty of Good Faith

Case commented on: Bhasin v Hrynew, 2013 ABCA 98, leave to appeal granted, 2013 CanLII 53400 (SCC)

This appeal is ultimately about contractual interpretation. It is about the types of obligations, over and above the express terms, that can be brought into the contract and the difficulties created as a result of the assertion that the contract goes beyond its express terms. Importantly, it considers the duty of good faith in the context of commercial relations and, as stated by the Supreme Court of Canada, which has granted leave to appeal, whether such duty could be excluded by an entire agreement clause.

Contractual Interpretation and Context

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Case commented on: Ziegler v Green Acres (Pine Lake) Ltd, 2013 ABQB 349.

Ziegler v Green Acres (Pine Lake) Ltd is a case that revolves around one provision in a unanimous shareholder agreement (USA). Due to tragic circumstances, the Applicants/Defendants (referred to as Defendants) ended up in court, in disagreement over the interpretation of the USA, and specifically, over whether the shares of a deceased shareholder had to be sold to the remaining shareholders, or could remain with the deceased’s wife.

Indalex: Priority of Provincial Deemed Trusts in a CCAA Restructuring

PDF version: Indalex: Priority of Provincial Deemed Trusts in a CCAA Restructuring

Case considered: Sun Indalex Finance, LLC et al v United Steelworkers et al, 2013 SCC 6.

Introduction

On February 1, 2013, Supreme Court of Canada (“SCC” or “Court”) released its much awaited decision, Sun Indalex Finance, LLC et al. v United Steelworkers et al. The case involved a company, Indalex, that was pursuing restructuri ng proceedings under the Companies’ Creditors Arrangement Act, RSC 1985, c C-36 (“CCAA”). Prior to its restructuring, Indalex had been failing to meet its employer contribution obligations to the company’s pension plan and when the pension plan was wound up, there was a deficiency in the funds.

Damages for Mental Distress in Breach of Contract

PDF version: Damages for Mental Distress in Breach of Contract 

Case considered: J.O. v. Strathcona-Tweedsmuir School, 2010 ABQB 559 

In J.O. v. Strathcona-Tweedsmuir School, the court awarded the plaintiff damages for mental distress arising from breach of contract. The facts of this case can be found in Alice Woolley’s recent ABlawg post.

The contract in question was one between the student, J.O., and the school. Ultimately, the court grounded its decision on the breach of contract in administrative fairness, finding that, based on the Private Schools Regulation (Alta. Reg. 190/2000) and on case law, the duty of fairness was an implied term of the contract. Having determined that the procedure followed by the school “fell considerably short of meeting [the school’s] duty of fairness” (para. 34), the school was in breach of its contract. The court awarded the plaintiff damages in the amount of one school year’s tuition for breach of the contract of instruction, and in an interesting move, also granted her contractual damages for mental distress, arising from her expulsion.

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