As my contracts professor used to say, “you can’t suck and blow at the same time”. What he meant was that you cannot seek to enforce some parts of a contract while simultaneously breaching others. That is what happened to Rand A Technology Corporation in a recent case: they breached the termination clause in the employment contract by paying less than they were required to but, when the employee complained, they tried to rely on that same termination clause to limit their liability. They lost.
Earlier this year, the Ontario Court of Appeal released its landmark decision in Waksdale v. Swegon North America Inc. This decision has now been relied on by the Ontario Superior Court of Justice to strike down another termination clause in Sewell v. Provincial Fruit Co. Limited.
Earlier this year, the Ontario Court of Appeal in Waksdale v Swegon North America Inc. struck down a termination clause. This was not groundbreaking as this court has struck down a number of termination clauses in recent years.