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Legal Blog:
Aug
01
2001
Bad Faith Bargaining
In our last newsletter (see April 2001 newsletter), we discussed Martel Building Ltd. v. Canada and bad faith bargaining. There have been two other cases opining on a cause of action for bad faith bargaining. In both of the cases, Midwest Management (1987) Ltd. v. B.C. Gas Utility Ltd, a November 2000 decision of the British Columbia Court of Appeal, decided before Martel, and PCC No. 505 v. Cam-Valley Ltd. (2001), 53 O.R. (3d) 1 (C.A.), a case decided after Martel, the courts rejected the notion of a cause of action for bargaining in bad faith. Good faith was recognised to have its place – but only in the performance of a contract, not in its creation.
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01
2001
Fair Oppression
The oppression remedies under the Business Corporations Act are encompassing more and more situations. Once the courts decided that the section could be applied to protect creditors, the floodgates were opened. Judgment creditors were the first to be protected; judgment creditors-to-be soon followed. Downtown Eatery (1993) Ltd. v. Ontario, an unreported 2001 decision of the Ontario Court of Appeal, deals with the concept of bad faith in the context of oppression.
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