Crystal Clear Contracting: The Supreme Court clarifies the law of pre and post-incorporation contracts
This past Friday the Supreme Court of Canada released a rare decision touching upon a commercial contractual dispute. The decision, Owners, Strata Plan LMS 3905 v. Crystal Square Parking Corp. 2020 SCC 29[1], saw the court address whether a corporation is bound by a pre-incorporation contract and the analytical approach to determine if a company has entered into a post-incorporation contract on the same terms. Justice Côté’s wrote the majority’s decision, while Justice Rowe dissented on the disposition of the appeal, but not the law. Here a strata corporation (“Strata Co.”) within a multi-use development argued that it was not ... [more] Full article
Commercial landlord on the hook for tenant shareholder’s loss in share value: Ontario Appellate Court clarifies limits on traditional rule that shareholders cannot sue for wrongs to the corporation
Shareholders of a corporation do not have a personal cause of action for wrongs committed against the corporation – such is the well-known rule in Foss v Harbottle. However, in ... [more] Full article
When can a member sue a Church, Club, or other Voluntary Association for treating them unfairly?
In Aga v. Ethiopian Orthodox Tewahedo Church of Canada, 2020 ONCA 10, the Ontario Court of Appeal affirmed when a voluntary association can be sued for failing to follow their ... [more] Full article
SCC agrees to hear appeal in another contractual good faith case
In a decision released on July 18, 2019, Canada’s top court granted leave to appeal in yet another case involving the controversial and sometimes nebulous concept of good faith in ... [more] Full article