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Surrounding Circumstances of Formation Relevant to Contract Interpretation

McDowell v. Fortress Real Capital Inc. 2019 Ont CA

A pleadings motion depended upon the interpretation of the relevant contract. The motion judge reviewed the contract, made his interpretation, and ruled that the claim disclosed no reasonable cause of action. The Court of Appeal overruled. It reasoned that that, since the interpretation of a contract is a question of mixed fact and law, the plaintiff was entitled to lead relevant evidence regarding the surrounding circumstances of the contract’s formation for its context to aid in its interpretation.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.