In March of 2006, the Ontario Superior Court of Justice awarded Kevin Keays a record $500,000 in punitive damages, in addition to 24 months pay in lieu of notice, after Honda terminated Keays’ employment for frequent work absences due to chronic fatigue syndrome. On September 29, 2006, the Ontario Court of Appeal held that the punitive damages awarded by the Superior Court should be dramatically reduced from $500,000 to $100,000. The Court of Appeal otherwise dismissed Honda’s appeal of the Superior Court decision and, in doing so, rejected Honda’s allegations of bias against the trial judge.

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The Ontario Court of Appeal has recently held that, in certain circumstances, contracting parties owe a duty of good faith to one another and, further, that an “entire agreement” clause will not preclude the implication of a duty of good faith as a term of a contract.

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Canada’s telecommunications industry is about to experience a massive shift from intrusive sectoral regulation to open markets. The Competition Bureau recently issued guidance on the application of the abuse of dominance provisions of the Competition Act to the telecommunications industry. Industry Minister Bernier has introduced legislation to provide for fines of up to $15 million against a telecommunications service provider found to have abused its dominant position. Mr. Bernier has also announced new rules that will accelerate deregulation of local telephone services.

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If investors borrow money to invest in mutual funds, and the funds do not perform up to expectations, are the lending financial institutions on the hook? This question was the subject of the recent Court of Appeal decision in Baldwin et al. v. Daubrey et al.

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A recent Ontario Superior Court decision serves as a strong reminder that counsel should ensure that their expert witness is in fact an expert and not merely an advocate dressed up as an expert.

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