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Cases

ONTARIO – Duty of Good Faith and Honest Performance of Contract – Even where a Court finds a breach of the duty of good faith and honest performance of a contract, the claimant must prove that it suffered damages. There is no presumption of damages upon a finding of a breach of duty of honest performance. The ONCA distinguished between evidentiary issues in proving damages, which may allow the Court to draw inferences as to quantum, and a failure to tender any evidence as to damages.

BRITISH COLUMBIA – Arbitration – Application to Stay Proceedings – Under s. 8(1) of the International Commercial Arbitration Act, the party applying for a stay has the onus of establishing an arguable case that the prerequisites for a stay have been met. Where those prerequisites are met, under s. 8(2) of the ICAA, the party opposing the stay has the onus of showing that the arbitration agreement was void, inoperative or incapable of being performed.

ONTARIO – Share Division – Where there is evidence supporting a division of shares that is different from the original division found in the corporate records, including an agreement between the shareholders, the corporate records alone are not dispositive of the issue of share division.

ONTARIO – Arbitration – Arbitration Agreement for online purchasing is binding in consumer claims of a commercial nature. In the absence of any indication of Parliamentary intent to do so, mandatory arbitration clauses in consumer adhesion contracts will be enforced.

ONTARIO – Mareva/Norwich Orders. In cases where there is a strong prima facie case of fraud, breach of trust or breach of fiduciary duty, non-disclosure on the investment details, and evidence of dissipation of assets, the court will issue an interlocutory Mareva injunction and an interim Norwich order requiring production of documentation from third party financial institutions.

ONTARIO – Arbitration – Jurisdiction. The Arbitration Act, 1991 (“Act”) has no application where the court finds that, due to a failure of consideration, there is no contract and thus, no arbitration clause. In those circumstances, s. 7(6) does not apply and does not prohibit an appeal.