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'But for' the ministry's unreasonable conduct, meat processor could have sold property

Highlights In general, a supplier’s obligation is to ensure the safety of its goods to the end consumer. A supplier does not owe a duty of care to other commercial parties in a supply chain. Courts are reluctant to recognize that commercial parties in a chain of contracts are provided additional rights outside of a contract where the parties had the chance to address any risks through the contract. Franchisees should not necessarily rely on extra-contractual claims to protect against potential risks and should negotiate these risks ahead of time or insure against them. Franchisors entering ...

To print this article, all you need is to be registered or login on Mondaq.com. If you don't operate a meat processing plant or a sandwich franchise, you might think that the Supreme Court's recent decision in 1688782 Ontario Inc. v. Maple Leaf Foods Inc.  does not affect your business. That is a mistake. The Maple Leaf Foods case had the potential to expand tort liability for business activity far beyond its historical scope. Four Supreme Court judges endorsed such an expansion. Fortunately, the majority in this 5-4 decision disagreed, and instead maintained the ru...