July 20, 2015

Decision suggests greater freedom for trial judges in contract law cases

Eli Lederman was quoted in Canadian Lawyer InHouse on July 20, 2015 regarding the decision in Energy Fundamentals Group Inc. v. Veresen Inc., 2015 ONCA 514, a significant case concerning the implication of contractual terms.

Eli Lederman, a partner at Lenczner Slaght Royce Smith Griffin LLPA recent Court of Appeal decision in Ontario adds to a growing trend that suggests trial judges may have greater freedom to determine whether parties are living up to their contractual obligations.

In Energy Fundamentals Group Inc. v. Veresen Inc., the case involved implied terms in contracts. When can a court imply terms into a commercial contract upon which the parties have not expressly agreed? Veresen Inc. appealed the decision of an application judge implying a contractual obligation on its part to disclose information to enable the Energy Fundamentals Group to determine whether to exercise an option to acquire up to 20 per cent of a limited partnership, the Jordan Cove energy project...