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Wastech, the Court clarified the content of another doctrine flowing from the organizing principle: the duty to exercise contractual discretion in good faith.  Background Wastech involved a waste transportation company (Wastech) and a corporation responsible for municipal waste disposal (Metro). In 1996, Wastech and Metro entered into a contract for waste disposal services that contemplated disposing waste in three landfills, one of which was much farther away than the others. The contract stated Metro had "absolute discretion" in allocating the amount of waste to go to this farther facility...

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...

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 c...

The Globe and Mail Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account Getting audio file ... This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer LAURA LEYSHON/The Globe and Mail The obligation to show good faith in the performance of a contract stops short of harming one’s own interests, the Supreme Court has ruled. The ruling came in a dispute between a waste management company and a government board in Vancouver. It is important for businesses, because it puts limits...

On December 18, 2020, the Supreme Court of Canada (" SCC") released its decision in C.M. Callow Inc v Tammy Zollinger Callow"); this decision will impact contractors, subcontractors, suppliers and various other components of the construction industry. The SCC clarified the duty of honest performance in contractual obligations and what may be considered a breach of this duty. What You Need to Know Parties to a contract have a duty of honest performance; The duty of honest performance means that parties must not lie or otherwise knowingly mislead each other about matters directly linked to the ...