Today, in its decision in Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District1, the Supreme Court has clarified the limits on the duty to exercise contractual.
The Supreme Court of Canada released its long-anticipated decision in Wastech Services Ltd v Greater Vancouver Sewerage and Drainage District today, a major decision concerning the scope of the.
not breached. The Greater Vancouver Sewerage and
Drainage District (
Metro ) and Wastech
Services Ltd. (
Wastech ) entered into a
long-term contract for the removal and transportation of waste to
three disposal sites. The contract gave Metro absolute
discretion to allocate waste between the sites and provided
that Wastech would be paid a different rate depending on the site.
In 2011, Metro reallocated waste in a way that resulted in
Wastech s not achieving a cost/revenue target identified in the
contract. The Court held that this reallocation did not breach
Metro s duty to exercise its contractual discretion in good
faith because it was consistent with the purposes for which the
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Despite the pandemic defining much of 2020, five key decisions
were released last year of lasting impact to businesses and
commercial dealings.
Expanding the Duty of Honest Performance
In
C.M. Callow Inc. v. Zollinger, 2020 SCC
45, the Supreme Court of Canada expanded the duty of
honest performance, holding that it requires that parties to a
contract must not lie or otherwise knowingly mislead each other
about matters directly linked to the performance of the contract.
This duty is breached where a right under a contract was exercised