Court Of Appeal Summaries (August 15 ' 19, 2022)

Published date22 August 2022
Subject MatterCorporate/Commercial Law, Insurance, Intellectual Property, Litigation, Mediation & Arbitration, Real Estate and Construction, Compliance, Corporate and Company Law, Contracts and Commercial Law, Insurance Laws and Products, Patent, Trademark, Arbitration & Dispute Resolution, Trials & Appeals & Compensation, Construction & Planning, Landlord & Tenant - Leases, Civil Law
Law FirmBlaney McMurtry LLP
AuthorMr John Polyzogopoulos and Ines Ferreira

Good afternoon.

Following are this week's summaries of the Court of Appeal for Ontario for the week of August 15, 2022.

The headline decision of the week was Hudson's Bay Company ULC Compagnie de la Baie D'Hudson SRI v. Oxford Properties Retail Holdings II Inc. HBC successfully sought relief from forfeiture of its lease at Hillcrest Mall at the beginning of the pandemic lockdowns. That order permitted HBC to only pay half its rent for a period of time in order to remain in good standing under the lease. HBC was later ordered to pay a lower amount of interest on arrears of rent than provided for under the lease. The Court disapproved, and made clear that relief from forfeiture is not an invitation to the courts to rewrite the terms of a commercial lease. It is to provide a tenant with a reasonable opportunity to come into full compliance with all of the terms of the lease.

In Urban Mechanical Contracting Ltd. v. Zurich Insurance Company Ltd., the Court ruled that it is possible for a construction performance bond issuer to seek rescission of a bond agreement on the basis of fraudulent misrepresentations and collusion, even when doing so would affect the rights of innocent third parties. As rescission is an equitable remedy focused on practical justice, the courts' approach to rescission is flexible and it may tailor a rescission remedy based on the facts of each case. Unfortunately, in this case, there were insufficient facts in evidence, so the Court could do no more than answer a theoretical question of the possible availability of rescission. The matter must now proceed to trial for a determination of the appropriateness and nature of any rescission remedy.

In Apotex Inc. v Eli Lilly Canada Inc., the appellant generic drug company, Apotex, failed in its bid to sue Eli Lilly for damages in keeping its generic drug out of the market in reliance on an issued patent that was ultimately set aside. The Court confirmed the lower court's ruling that the patent laws contain a complete code of remedies in such a case, and Apotex could not assert any common law claim to damages.

Wishing everyone an enjoyable weekend.

John Polyzogopoulos
Blaney McMurtry LLP
416.593.2953 Email

Ines Ferreira
Blaney McMurtry LLP
416.597.4895 Email

Table of Contents

Civil Decisions

Hudson's Bay Company ULC Compagnie de la Baie D'Hudson SRI v. Oxford Properties Retail Holdings II Inc., 2022 ONCA 585

Keywords: Contracts, Real Property, Commercial Leases, Relief from Forfeiture, COVID-19, Damages, Interest, Commercial Tenancies Act, R.S.O. 1990, c. L.7, s. 20, Courts of Justice Act, R.S.O. 1990, c. 43, s. 101, Bosak et al. v. 3930441 Canada Inc. et al., 2014 ONSC 1138, The Second Cup Ltd. v. 2410077 Ontario Ltd., 2020 ONSC 3684, 1397633 Ontario Inc. v. Oxford Properties Group Inc., 2003 Carswell Ont. 1291 (OSC), Ontario (AG) v. 8477 Darlington Crescent, 2011 ONCA 363, Hunt's Transport Limited v. Eagle Street Industrial G.P. Inc., 2020 ONSC 5768, Saskatchewan River Bungalows Ltd. v. Maritime Life Assurance Company, [1994] 2 S.C.R. 490, Liscumb v. Provenzano (1985), 51 O.R. (2d) 129, at 137 (S.C.), aff'd 55 O.R. (2d) 404 (C.A.), 1383421 Ontario Inc. v. Ole Miss Place Inc. (2003), 67 O.R. (3d) 161, Ross v. Eaton Co. (1993), 11 O.R. (3d) (C.A.), Ontario Inc. v. Leon's Furniture Ltd., [2003] O.J. No. 3708, Clark Auto Body v. Integra Custom Collision Ltd., 2007 BCCA 24, Hudson's Bay Company ULC v. Pension Fund Investment Ltd., 2020 BCSC 1959, Cherry Lane Shopping Centre Holdings v. Hudson's Bay Company ULC, 2021 BCSC 1178, Tauro v. Yu, 2018 ONSC 7319 (Div. Ct.)

Urban Mechanical Contracting Ltd. v. Zurich Insurance Company Ltd., 2022 ONCA 595

Keywords: Contracts, Construction, Surety Bonds, Performance Bonds, Payment Bonds, Fraudulent Misrepresentation, Equitable Remedies, Rescission, Restitutio in Integrum, Restitutio in Specie, Construction Act, R.S.O. 1990, c. C.30, s. 85.1, O. Reg. 304/18, s. 12, Construction Lien Act, R.S.O. 1990, c. C.3, s. 69(1) and (3), Truro (Town) v. Toronto General Insurance Co., [1974] S.C.R. 1129, Guarantee Co. of North America v. Gordon Capital Corp., [1999] 3 S.C.R. 423, Place Concorde East Ltd. Partnership v. Shelter Corp. of Canada Ltd. (2006), 270 D.L.R. (4th) 181 (Ont. C.A.), Deschenes v. Lalonde, 2020 ONCA 304, Kingu v. Walmer Ventures Ltd. (1986), 10 B.C.L.R. (2d) 15 (C.A.), Spence v. Crawford, [1939] 3 All E.R. 271, Barclays Bank v. Metcalfe & Mansfield, 2011 ONSC 5008, York University v. Markicevic and Brown, 2016, ONSC 3718, 33 C.C.E.L. (4th) 26, Moore v. Sweet, 2018 SCC 52, [2018] 3 S.C.R. 303, KBA Canada, Inc. v. Supreme Graphics Limited, 2014 BCCA 117, Zaidan Group Ltd. v. London (City) (1990), 71 O.R. (2d) 65 (C.A.), Neles Controls Ltd. v. Canada, 2002 FCA 107, 2747-3174 Québec Inc. v. Québec (Régie des permis d'alcool), [1996] 3 S.C.R. 919, Tremblar Building Supplies Ltd. v. 1839563 Ontario Limited, 2020 ONSC 6302, Valard ConstructionLtd. v. Bird Construction Co. 2018 SCC 8, Paul D'Aoust Construction Ltd. v. Markel Insurance Co. of Canada (1999), 120 O.A.C. 243 (C.A.), Tennent v. The City of Glasgow Bank (1879), 4 App. Cas. 615 (U.K.), Clough v. London and Northwestern Railway Company (1871), L.R. 7 Exch. 26 (U.K.), Society of Lloyd's v. Leighs, [1997] E.W.C.A. Civ. 2283 (U.K.), Foy v. Royal Bank (1995), 37 C.P.C. (3d) 262 (Ont. Gen. Div.), i Trade Finance Inc. v. Bank of Montreal, 2011 SCC 26, Nesbitt v. Redican, [1924] S.C.R. 135, Spence v. Crawford, [1939] 3 All E.R. 271, Kiani v. Abdullah (1989), 70 O.R. (2d) 697 (C.A.); Carter v. Golland, [1937] O.R. 881 (C.A.), Brown & Root v. Aerotech Herman Nelson Inc. et al., 2004 MBCA 63, Canada (Attorney General) v. Collins Family Trust, 2022 SCC 26, Rick v. Brandsema, 2009 SCC 10, Kupchak v. Dayson Holdings Ltd. (1965), 53 D.L.R. (2d) 482 (B.C.C.A.), McCarthy v. Kenny, [1939] 3 D.L.R. 556 (Ont. S.C.), Trans-Canada Trading Co. v. M. Loeb Ltd., [1947] 2 D.L.R. 849 (Ont. H.C.J.), Stewart v. Complex 329 Ltd. (1990), 109 N.B.R. (2d) 115 (Q.B.), Singh v. Trump, 2016 ONCA 747, De Molestina & Ors v Ponton & Ors, [2001] E.W.H.C. 521 (Comm) (U.K.), Gerald H.L. Fridman, The Law of Contract in Canada, 6th ed. (Toronto: Carswell, 2011), Ruth Sullivan, The Construction of Statutes, 7th ed. (Markham: LexisNexis Canada Inc., 2022)

Apotex Inc. v. Eli Lilly Canada Inc., 2022 ONCA 587

Keywords: Intellectual Property, Patents, Invalidity, Trademarks, Competition Law, Monopolies, Torts, Civil Conspiracy, Civil Procedure, Costs, Statute of Monopolies, R.S.O. 1897, Ch. 323, s. 5, Trademarks Act, R.S.C., 1985, c. T-13, Patent Act, R.S.C., 1985, c. P-4, Patented Medicines (Notice of Compliance) Regulations, SOR/93-133, Food and Drugs Act, R.S.C. 1985, c. F-27, Competition Act, R.S.C., 1985, c. C-34, Apotex v. Sanofi-Sythelabo Canada Inc., 2008 SCC 61, Commissioner of Patents v. Farbwerke Hoechst Aktiengesellschaft Vormals Meister Lucius & Bruning, [1964] S.C.R. 49, AstraZeneca Canada Inc. v. Canada (Minister of Health), 2006 SCC 49, Apotex Inc. v. Schering Corporation, 2018 ONCA 890, Harris v. GlaxoSmithKline, 2010 ONCA 872, Peck v. Hindes (1898), 15 R.P.C. 113 (Q.B.D.), Hamilton v. Open Window Bakery Ltd., 2004 SCC 9, [2004], Restoule v. Canada (Attorney General), 2021 ONCA 779, Berry v. Scotia Capital Inc., 2010 ONSC 5489, Andersen v. St. Jude Medical, Inc. (2006), 264 D.L.R. (4th) 557 (Ont. Div. Ct.), Gratton-Masuy Environmental Technologies Inc. v. Building Materials Evaluation Commission (2003), 170 O.A.C. 388 (Div. Ct.), Moon v. Sher (2004), 246 D.L.R. (4th) 440 (Ont. C.A.), Leonard v. Zychowicz, 2022 ONCA 212, Davies v. Clarington (Municipality) et al., 2009 ONCA 722, British Columbia (Minister of Forests) v. Okanagan Indian Band, [2003] 3 S.C.R. 371

Short Civil Decisions

Mugizi v. Ngo,, 2022 ONCA 595

Keywords: Torts, MVA, Civil Procedure, Dismissal for Delay, Sickinger v. Krek, 2016 ONCA 459

Blackwell v. Genier, 2022 ONCA 599

Keywords: Civil Procedure, Costs

Beaudoin v. Beaulieu, 2022 ONCA 598

Keywords: Family Law, Spousal Support, Child Support, Section 7...

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