Canadian Appeals Monitor

Information and Commentary on Upcoming and Recent Appeal Court Decisions

No Place To Hide: Service In States That Are Not Signatories To The Hague Convention

Posted in Case Comments, Procedure
Eric Pellegrino

On February 23, 2017, the Supreme Court of Canada refused leave to appeal the Court of Appeal’s decision in Xela Enterprises Ltd. v. Castillo: a case in which the Court determined that it is acceptable to serve parties in accordance with the Rules of Civil Procedure in states that are not signatories to the Hague Convention. Continue Reading

Municipalities Can’t Bike Around Risk Management

Posted in Case Comments, Occupiers Liability Act
Shanique Lake

On February 16, 2017, the Supreme Court of Canada refused leave to appeal the 2016 decision of the Ontario Court of Appeal in Campbell v. Bruce (County): a case in which an Ontario municipality that operated a mountain biking adventure park (the “Bike Park”)  was found liable, as occupier, for the accident that rendered cyclist Stephen Campbell a quadriplegic.

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No Jury Trial for Securities Offences: Economic Penalties Are Not A “More Severe Punishment” Under Section 11(f) of the Charter

Posted in Case Comments, Charter of Rights, Constitutional, Criminal, Procedural Rights, Securities, Supreme Court of Canada
Timothy Froese

Is a $5 million fine a less severe punishment than a night in jail?  Are hefty financial penalties for quasi-criminal or regulatory offences able to trigger the procedural protections of the Canadian Charter of Rights and Freedoms when combined with the threat of imprisonment? The Supreme Court of Canada had the opportunity to address these questions when it recently released the twin decisions of R v Peers, 2017 SCC 13 and R v Aitkens, 2017 SCC 14. Continue Reading

The Supreme Court of Canada Searches for Goldilocks: Is the Jurisdiction of the Federal Court Narrow, Broad, or Just Right?

Posted in Case Comments, Statutory
Meghan S. Bridges

One of the first lessons I remember being taught as a law student about statutory interpretation was to look at both the words of the statute and the purpose Parliament intended in enacting the statute. I quickly learned that statutory interpretation can be somewhat of a headache because, sometimes, the words and the purpose of the statute are at odds with each other. What to do then? Continue Reading

Edmonton East (Capilano): Standard of Review Heads South

Posted in Aboriginal, Administrative, Constitutional, Municipal
Ryan MacIsaac

The Supreme Court of Canada released its administrative law decision in Edmonton (City) v. Edmonton East (Capilano) Shopping Centres Ltd., 2016 SCC 47 (“Edmonton East”) in late 2016.[1] The decision was one of our Top Ten Appeals of 2016. It marked a significant shift in how courts determine the standard of review for questions of law on judicial review. The result is that it will be more difficult for individuals and companies to challenge the acts and decisions of government actors, even if the government actors have stepped outside of their legislated authority. Continue Reading

The Supreme Court of Canada provides limited guidance on the constitutionality of immunity clauses for tribunals

Posted in Charter of Rights
Patrick Williams

In Ernst v. Alberta Energy Regulator, 2017 SCC 1, the Court split 4-4-1 over the constitutionality of an immunity clause in favour of the Alberta Energy Regulator (the “Board”). The case was resolved largely on procedural grounds. For example, Justice Abella—the “1” in the 4-4-1 split—held that Ms. Ernst’s failure to provide notice of her constitutional challenge to the immunity clause was fatal to her claim. Meanwhile, the remaining eight judges divided over the issue of whether to accept Ms. Ernst’s concession that the immunity clause actually barred her claim against the Board. As a result, the Court largely left the constitutionality of immunity clauses to another day and Ernst has questionable precedential value. Continue Reading

The Year Ahead: Ten Top Appeals to Watch in 2017

Posted in Features
Kelli McAllisterSara D.N. Babich

2017

The coming year will see our highest court decide a host of appeals of interest to Canadian businesses and professions. The Appeals Monitor is pleased to present our annual forecast of the top ten appeals expected in 2017.

10Remedies for Breach of Modern Treaties: First Nation of Nacho Nyak Dun v Government of Yukon

This case involves a modern treaty known as the Umbrella Final Agreement (“UFA”) between First Nations in the Yukon, the Crown, and the Yukon Government. Under the UFA, the parties are to engage in a collaborate land use planning process. At issue before the SCC is the remedy for breach of modern treaties and the remedy after quashing a flawed decision. Continue Reading

Looking Back – The 10 Most Important Appeals of 2016

Posted in Features
Ryan MacIsaacDextin Zucchi

Top 10 header

 

The Appeals Monitor is pleased to present our annual review of the most significant appellate decisions of the past year. From criminal law to contracts, 2016 was full of exciting developments and we hope that you, our reader, will enjoy these summaries.

10Endean: Justice to Go

In Endean v British Columbia, 2016 SCC 42, the Supreme Court of Canada (“SCC”) addressed whether superior court judges may sit outside their home provinces to hear and decide a motion about a pan-national class action settlement. Endean was at the top of our Appeals to Watch in 2016 list from last year. The lower court decisions were previously discussed here and the SCC decision discussed here. Continue Reading

The Alberta Court of Appeal clarifies the organizing principle of good faith with style

Posted in Case Comments, Contracts
Dextin Zucchi

In Styles v Alberta Investment Management Corporation (“Styles”),[1] the Alberta Court of Appeal provided useful guidance on the application of the organizing principle of good faith in contractual performance, established by the Supreme Court of Canada in its landmark decision Bhasin v Hrynew (“Bhasin”).[2] Since Bhasin, there has been a lack of clarity on how to apply and consider the organizing principle. In Styles, the Alberta Court of Appeal (1) expressly declined to expand the organizing principle to create a “common law duty of reasonable exercise of discretionary contractual powers”, (2) recognized other key limitations to the organizing principle, and (3) confirmed the extent of an employer’s duty of good faith when terminating an employee. Styles is the latest example of an appellate court applying Bhasin with caution and restraint. Continue Reading

The Supreme Court of Canada (Clearly and Expressly) Affirms the Importance of Solicitor-Client and Litigation Privilege

Posted in Case Comments, Privilege
Jessica Laham

In two recent companion decisions, the Supreme Court of Canada affirmed the importance of litigation privilege and solicitor-client privilege to the Canadian legal system. In Lizotte v. Aviva Insurance Company of Canada[1] (Lizotte), the Court recognized litigation privilege as a distinct and fundamental principle of the administration of justice, while in Alberta (Information and Privacy Commissioner) v. University of Calgary[2] (Alberta (Information and Privacy Commissioner)), the Court focused on issues of solicitor-client privilege. These decisions both confirm that for the legislature to abrogate either litigation privilege or solicitor-client privilege, nothing less than clear and express statutory language will suffice. Continue Reading

Business Realities v. Narrow Legalities: The Supreme Court considers the oppression remedy in Mennillo v. Intramodal Inc., 2016 SCC 51

Posted in Case Comments, Corporate Law
Michael O'Brien

In Mennillo v. Intramodal Inc. 2016 SCC 51, the most recent consideration of the oppression remedy by the Supreme Court of Canada (released on November 18, 2016), the majority confirmed the oppression remedy’s equitable purpose, and held that a corporation’s failure to comply with the CBCA[1] does not, on its own, constitute oppression.

This decision, with particular applicability to small, closely held corporations, reiterated oppression remedy principles set out in the 2008 Supreme Court decision of BCE Inc. v. 1976 Debentureholders,[2] that the remedy is concerned with fairness and business realities, rather than narrow legalities.[3] Continue Reading

Indeterminate Liability of Auditors and the Dangers of Partial Summary Judgment

Canadian Imperial Bank of Commerce v Deloitte & Touche, 2016 ONCA 922

Posted in Case Comments, Procedure, Professions
William D. BlackEli MogilLeah Ostler

In a decision released on December 8, 2016, the Ontario Court of Appeal allowed an appeal from partial summary judgment, holding that issues of indeterminate auditor liability should proceed to trial.

Facts

In 1998, an accounting fraud was discovered at Philip Services Corp. (“Philip”), a publicly traded company. The Plaintiffs alleged that Philip’s auditors, Deloitte and Deloitte Touche Tohmatsu (“Deloitte”) gave unqualified opinions in connection with its audits of Philip’s consolidated financial statements for the financial years ending December 31, 1995 and 1996. Continue Reading

English Court of Appeal Rejects the “Organizing Principle of Good Faith”

Posted in Case Comments, Contracts
Paul Davis

The Supreme Court of Canada’s decision in Bhasin v. Hrynew[1] – on which this blog has commented – marked a sea change in Canadian contract law. In Bhasin, the Court recognized an “organizing principle of good faith” in contractual relations that underpins numerous specific doctrines, including, for example, unconscionability and the treatment of discretionary contractual powers.

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Key Banking Decisions of 2016: The Supreme Court of Canada releases its decision in Royal Bank of Canada v. Trang

Posted in Case Comments, Privacy
Daniel G.C. GloverCharles MorganRenee ReicheltBarry SookmanKirsten ThompsonAnna-Marie Manley

A recent article, published by McCarthy Tetrault LLP may be of interest to readers of the Canadian Appeals Monitor blog.

The Supreme Court of Canada released a landmark decision on November 17, 2016 giving important guidance on how Canada’s federal privacy law, the Personal Information Protection and Electronic Documents Act, should be interpreted in Royal Bank of Canada v. Trang, 2016 SCC 50.

Policyholders stay tuned: final word on the LEG 2/96 defective workmanship exclusion yet to come

Posted in Case Comments, Contracts, Insurance
Ariel DeJongLindsay Burgess

As we reported here, the BC Court of Appeal in Acciona Infrastructure Canada Inc. v. Allianz Global Risks US Insurance Company grappled with the proper interpretation of the LEG 2/96 defective workmanship exclusion common in many builder’s risk insurance policies. Applying general principles of contract interpretation the Court held that the exclusion is restricted to denying only those costs that would have been incurred to prevent the damage from happening. Having been unsuccessful on the appeal, the Insurers filed an application for leave to the Supreme Court of Canada. Continue Reading

The Supreme Court of Canada Clarifies the Test and Procedure for Joint Submissions on Sentencing

Posted in Case Comments, Criminal
David PorterAndrew MathesonTrevor Courtis

In R. v. Anthony‑Cook, 2016 SCC 43, the Supreme Court of Canada recently confirmed that trial judges should only depart from a joint submission in very limited circumstances, where the sentence proposed would bring the administration of justice into disrepute, or is otherwise not in the public interest.

Resolution negotiations are a prevalent and necessary feature of our criminal justice system. They allow the Crown and the accused to avoid the uncertainty, stress and legal costs associated with trials where the accused admits guilt and is not exercising his right to make full answer and defence. Resolutions also save the court system precious time, resources, and expenses. Indeed, without resolutions the criminal justice system would collapse under its own weight.[1] Continue Reading

Hamilton City’s Attempt to Stamp Out Community Mail Delivery Ruled Unconstitutional (Sort of)

Posted in Case Comments, Constitutional
Byron ShawHakim Kassam

In response to Canada Post’s announcement that it was restructuring its mail delivery and doing away with home delivery services, the City of Hamilton passed a by-law giving the City control over the installation of equipment on municipal roads, including Canada Post’s community mailbox (“CMB”) delivery systems. Last week, the Ontario Court of Appeal held[1] that the by-law was constitutionally inoperative to Canada Post since it conflicted with the federal Canada Post Corporation Act[2] and the Mail Receptacles Regulations.[3] The Court of Appeal’s decision highlights a tension in the pith and substance jurisprudence between the principle of colourability on the one hand and the motive and purpose of the enacting body on the other. Furthermore, the decision reveals a preference for resolving division of powers disputes through the paramountcy doctrine, which gives rise to a narrower constitutional remedy. Continue Reading

The Ontario Court of Appeal Weighs in on the Jordan Framework for Trial Within a Reasonable Time

Posted in Case Comments, Criminal
Trevor CourtisPeter BradyMichael Rosenberg

As discussed in our previous post, the Supreme Court of Canada recently dramatically altered the framework applicable to the right to a criminal trial within a reasonable time in R. v. Jordan, 2016 SCC 27. This decision has already had a significant impact on the operation of criminal courts in Ontario.

In light of this decision, the Ontario Court of Appeal requested further submissions on two s. 11(b) appeals that had already been argued before the Court under the previous framework. On September 28, 2016, the Court released its decisions in R. v. Manasseri, 2016 ONCA 703 and R. v. Coulter, 2016 ONCA 704. These decisions provide some helpful guidance on how the Courts of Ontario will apply the new framework to “transitional” cases in the system, particularly cases where 1) the delay is just below the presumptive ceilings established in Jordan, and 2) the delay is primarily caused by a co-accused. Continue Reading

Short-Term Parking vs. Long-Term Interests: Applying the Business Judgment Rule to Decisions of Condominium Boards

Posted in Case Comments, Condominium Act, Corporate Law, Securities
Jordan V. Katz

The Ontario Court of Appeal recently considered the application of the oppression remedy provision in the Ontario Condominium Act, 1998, SO 1998, c 19 (the “Act”). In doing so, it engaged in a useful – and rare – discussion of the “business judgment rule” outside of the corporate law context, while reinforcing the basic elements of the rule familiar to corporate and securities law practitioners.

Background Continue Reading

Insureds Score a Big Win at the SCC

Posted in Case Comments, Contracts, Insurance
Ariel DeJongGeoff R. HallHovsep AfarianLindsay Burgess

Policyholders recently won a key victory at the Supreme Court of Canada in Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co. as the Supreme Court clarified the interpretation of a standard form faulty workmanship exclusion clause common in builder’s risk policies.  The decision has wide-reaching significance to other insurance coverage disputes and to contract law generally.

The Supreme Court confirmed that only the cost to redo the faulty work is precluded from coverage by such an exclusion. Builder’s risk, or “course of construction” insurance policies seek to insure against certain defined risks which may occur during the construction process. Such policies generally provide coverage for the owner of the property under construction, the general contractor, and all contractors and subcontractors working on the project. The exclusion at issue in this decision excluded from coverage “the cost of making good faulty workmanship”, but provided an exception for resultant damage (the “Exclusion Clause”). Continue Reading

The Supreme Court of Canada rules that Québec’s farm income stabilization program is not an insurance contract subject to public law rules

Posted in Administrative, Case Comments, Contracts, Supreme Court of Canada
Renée Zatzman

Overview

Two companion decisions of the Supreme Court of Canada were recently released in cases included on our Appeals to Watch in 2016 list, Ferme Vi-Ber inc. v. Financière agricole du Québec, 2016 SCC 34, and Lafortune v. Financière agricole du Québec, 2016 SCC 35.

Both cases involved the interpretation of the same Québec farm producer income stabilization program (the “ASRA Program”) administered by La Financière agricole du Québec (“La Financière), a statutory authority. The appeals focused on whether the ASRA Program should be governed by public administrative law principles or the private rules of contract law. Continue Reading

Ontario Court of Appeal Implies New Prohibition Into Rules of Civil Procedure: Pre-Trial Conference Judges Cannot Decide Summary Judgment Motions in the Same Action

Posted in Case Comments, Procedure
Trevor Courtis

The purpose of a pre-trial conference is to provide parties with a forum to obtain an appraisal from a judge of their respective positions on the outstanding issues between them, and provide an opportunity to openly negotiate a resolution of these issues. The ability of the parties to speak freely without concern that their positions in the litigation will be prejudiced is protected by Rules 50.09 and 50.10 of the Rules of Civil Procedure, which provide that (i) the statements made at a pre-trial conference cannot be used in the proceedings, and (ii) the pre-trial conference judge cannot preside at the trial of the matter: Continue Reading

Procedure Trumps Substance: Alberta Court of Appeal Grants Certification in Warner v Smith & Nephew Inc, 2016 ABCA 223

Posted in Class Actions
Kelli McAllisterRenee Reichelt

A recent article, Procedure Trumps Substance: Alberta Court of Appeal Grants Certification in Warner v Smith & Nephew Inc, 2016 ABCA 223 (“Warner”), published on McCarthy Tétrault’s Canadian Class Actions Monitor blog may be of interest to readers of the Canadian Appeals Monitor blog. Kelli McAllister and Renee Reichelt explore the ongoing tension in certification motions where courts are to provide a meaningful screening device but refrain from assessing the merits of the claim.

In Warner, the Alberta Court of Appeal disagreed on whether to consider if a plaintiff can prove her claims at the certification stage. Justice Slatter, in dissent, noted at paragraph 112 that neither side could prove certain allegations relating to long-term effects of a hip-resurfacing device – neither science nor medicine had resolved the issue: “[i]f the scientists and doctors have been not been able to resolve this issue using the usual scientific methods (lab experiments, long term blind studies, etc.) how is it realistic to think that a trial judge is going to find the answer in a civil trial? A trial judge has no laboratory.” The majority was unmoved. The plaintiff did not need to establish the strength of her claim or whether expert evidence could prove it. Certification is a procedural motion only. Whether leave to appeal to the Supreme Court of Canada will be sought in Warner remains to be seen. However, in Pro-Sys Consultants Ltd v Microsoft Corporation, 2013 SCC 57 the Supreme Court of Canada reaffirmed that certification is a meaningful screening device. How a court can meaningfully screen propose class actions without some consideration of the merits remains a divisive issue in class actions and a fertile ground for further appellate consideration.

Is There a Duty to Renegotiate Contracts in Cases of Hardship?

Posted in Case Comments, Contracts
Gabriel Faure

In Churchill Falls (Labrador) Corporation Ltd c Hydro-Québec, 2016 QCCA 1229 (English translation here), the Quebec Court of Appeal seemed to contemplate that there may exist a duty to renegotiate a long-term contract where unforeseen circumstances arise which amount to hardship; however, the Court found the facts of the case did not give rise to such a situation so there could be no obligation to renegotiate the contract at issue.

The dispute related to a power contract signed in 1969 between Hydro-Québec and the Churchill Falls (Labrador) Corporation Limited (“CFLCo”) whereby CFLCo agreed to supply, and Hydro-Québec agreed to purchase, substantially all of the power produced by the Churchill Falls Generating Station for a total term of 65 years. Following the execution of the contract, the price paid by Hydro-Québec turned out to be markedly lower than the commercial value of the power generated, as a result of increases in energy prices and the emergence of competitive energy markets in North America, although the contract remained marginally profitable for CFLCo. Continue Reading