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Proof of Future Economic Losses in Tort Law

Cases Considered:  Chernetz v. Eagle Copters Maintenance Ltd., 2008 ABCA 265

PDF Version:   Proof of Future Economic Losses in Tort Law

In 1999, Harry Chernetz was killed in a helicopter crash. In an action against the helicopter operator and its maintenance company, his estate, his wife and their three teenaged children were awarded damages exceeding $3 million under the Fatal Accidents Act, R.S.A. 2000, c. F-8. The plaintiffs appealed, submitting, amongst other things, that in assessing the loss of future income, the trial judge wrongly required the plaintiff to prove what Harry Chernetz would have earned had the tort not occurred on a balance of the probabilities. Instead, the appellants contended, the trial judge should have attached probabilities to what Harry Chernetz might have earned, as a real and substantial possibility, had the tort not occurred, and calculated the expected earnings. The Alberta Court of Appeal (per Justices Constance Hunt, Clifton O’Brien and Alan Macleod) found that the trial judge applied the wrong standard of proof to isolated issues only and, for reasons of economy of judicial time and resources as well as fairness, ordered the action to be remitted to the trial judge to remedy the isolated errors identified by the Court of Appeal. Unfortunately, given the nature of the principles involved in assessing future economic loss, where there is a lack of clarity in the application of such principles by the trial judge, it may not be possible in principle for the Court of Appeal to accurately identify the errors.

When Does a Royalty Owner not have to Pay for a Share of Processing Costs?

Case Considered: 570495 Alberta Ltd. v. Hamilton Brothers Exploration Company, 2008 ABQB 413

PDF Version:  When does a royalty owner not have to pay for a share of processing costs?

When does a royalty owner not have to pay for a share of processing costs? The answer of course should be that the royalty owner does not have to pay unless it is required to do so by the terms of the agreement that created the royalty. And that in fact is exactly what Justice Alan Macleod concludes in this judgement. Just as there is no rule of law that precludes an oil and gas lease from being kept in force beyond the end of its primary term by the mere existence of a shut-in well in “accordance with oil field practice” (see Kensington Energy Ltd v. B & G Energy Ltd 2008 ABCA 151 and my post on this decision), so too there is no rule of law that requires a royalty owner to pay a share of post-severance processing costs. This judgement confirms that processing costs are issues of contract between the parties and that the job of the court is to give effect to the terms of the agreement that the parties have negotiated.

The ERCB asserts its jurisdiction to determine the validity of an oil and gas lease

Cases Considered: In re Desoto Resources, Joffre Field, ERCB Decision 2008-47

PDF Version:   The ERCB asserts its jurisdiction to determine the validity of an oil and gas lease

In an unusual decision the ERCB has asserted its jurisdiction to determine the validity of an oil and gas lease. While the Board has in recent years been forced to make rulings on complex questions of property law such as the competing rights of coal owners and natural gas owners to coal bed methane (In re Bearspaw Petroleum, EUB Decision 2007-24) as well as the competing interests of bitumen producers and natural gas producers (Alberta Energy Company Ltd. v. Goodwell Petroleum Corporation Ltd., 2003 ABCA 277, reviewing EUB Decision 2000-21) this is, so far as I am aware, the first reasoned decision of the Board in which it has passed on the validity of an oil and gas lease. Desoto’s application in the Court of Queen’s Bench for a declaration as to the validity of the leases was pending at the time of the Board’s decision.

No Costs Awarded for Failure to Prosecute Aboriginal Fishing Rights Case

Cases Considered: R. v. Nest, 2008 ABQB 323

PDF Version:
  No Costs Awarded for Failure to Prosecute Aboriginal Fishing Rights Case

Donald Marshall, David Milgard, and Guy Paul Morin are the troika of wrongful conviction cases in Canada, bringing to mind overzealous prosecution of innocent persons and the compensation required to right those wrongs. But what about the opposite scenario, where the failure to prosecute is alleged to constitute a rights infringement deserving of compensation? This was the argument made by the claimants in a recent Alberta case.

Queen’s Bench Boosts Municipal Bylaw Making Powers

Cases Considered: William Holowatiuk v. Beaver County, 2008 ABQB 290

PDF Version: Queen’s Bench Boosts Municipal Bylaw Making Powers

This decision takes a broad view of municipal powers granted under the Alberta Municipal Government Act (R.S.A. 2000, c. M-26) (MGA). In doing so it finds that statutory provisions that limit municipal powers may not limit municipal bylaw making power. Although the Court engaged in an extensive historical and statutory interpretation exercize in reaching its decision, in my view, the decision failed to consider a key provision of the MGA, section 13. If it had, the Court might well have reached a different conclusion.

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