The British Columbia Court of Appeal’s decision in Roy v Kretschmer, 2014 BCCA 429 provides guidance on the element of reliance in the tort of deceit. It also holds that a contractual clause limiting liability is unenforceable even where the breaching party did not commit a criminal act or egregious fraud.
This decision is of interest to Canadian businesses because it suggests that where a contract has been breached, the breaching party can be sued in tort for hiding the circumstances of the breach if the non-breaching party relies on the breaching party’s fraudulent silence or misrepresentations. Further, in … Continue Reading
Some causes of action are “continuing” in nature. Historically, torts such as trespass or nuisance have in some instances fallen into this category. More recently, Canadian courts have recognized that breaches of contract can also be continuing in nature, particularly in cases where the agreement calls for periodic payments that are dishonored. In essence, Canadian Courts have generally held that the failure to honor each of the scheduled periodic payments gives rise to a discrete, independent cause of action with its own limitation period.
The practical result of this approach has been that even if a claim for breach of … Continue Reading
When does the limitation period begin to run for an anticipatory breach of contract? Does the limitation period commence as soon as the guilty party indicates that it will breach a future obligation? Or can the innocent party safely assume that that the limitation period does not run until the time comes for the performance of the contract and the guilty party then in fact fails to perform its obligation? A recent decision by the Ontario of Court of Appeal brings much needed clarity to this important issue.… Continue Reading