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duty of good faith

By Rudner Law, Employment / HR Law & Mediation | 5 Minutes Read April 1, 2022

Not everything is bad faith

In the world of employment, Wallace v. United Grain Growers Ltd. established a duty on the part of employers to act in good faith while in the course of dismissal. In the decade or so following that decision, virtually every wrongful dismissal included an allegation of bad faith.

Article by Rudner Law, Employment / HR Law & Mediation / Business, Employee Relations, Employment Standards, Payroll / bad faith, Dismissal, duty of good faith, employment law, termination 1 Comment

By McCarthy Tétrault LLP | 5 Minutes Read January 25, 2022

The Supreme Court of Canada clarifies the duty to exercise contractual discretion in good faith

duty of good faith

On February 5, 2021, the Supreme Court of Canada released its judgment in Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District.[1] Wastech clarifies the nature and scope of the duty to exercise discretionary contractual powers in good faith. The appeal was heard together with C.M. Callow Inc. v. Zollinger[2] (see our earlier blog post), which clarified the duty of honest performance established in Bhasin v. Hrynew[3] (see our earlier blog post).

What you need to know

Wastech holds that:

  1. Contracting parties have a duty to exercise contractual discretion in good faith.[4] This duty “operates in every contract irrespective of the intentions of the parties”.[5]
     
  2. The duty requires parties to exercise their contractual discretion “in a manner consistent with the purposes for which it was granted in the contract” — i.e., “reasonably”.[6] This duty can be breached
… Continue reading “The Supreme Court of Canada clarifies the duty to exercise contractual discretion in good faith”

Article by McCarthy Tétrault LLP / Business, Finance and Accounting / contracts, duty of good faith, duty to exercise contractual discretion in good faith, good faith Leave a Comment

By Adam Gorley | 2 Minutes Read May 11, 2021

Do you know the latest on terminations? Find out at the Ontario Virtual Employment Law Conference

Learn the Latest® at the Ontario Virtual Employment Law Conference on June 17, 2021, brought to you by First Reference and Stringer LLP. It's the essential one-day update for human resources managers and consultants, business owners, labour relations, staffing, payroll, and finance and accounting professionals in Ontario!

Article by Adam Gorley / Employee Relations, Employment Standards, Health and Safety, Human Rights, Payroll / bonus payments, constructive dismissal, duty of good faith, employment law, just cause, layoffs, Ontario Employment Law Conference, safety protocols, terminations

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