Shotgun Clause Robs Shareholders of $750k
The BC Court of Appeal has upheld an arbitrator’s finding that triggering a shotgun clause terminated the selling parties’ interest in a joint venture, thereby eliminating their entitlement to an outstanding capital equalization payment. The Co-Ownership Agreement In 2007, JEL Investments Ltd. entered into a joint venture with Boxer Capital Corporation and Yanco Management Ltd. JEL held a 50% interest, with the other 50% split between Boxer and Yanco. Boxer and Yanco agreed that JEL would contribute proportionately less equity to the venture up front, due to a lack of available funds at the time. In exchange, any profits would ... [more] Full article
It’s no lie: Supreme Court recognizes contractual duty of good faith
The Supreme Court of Canada’s decision in Bhasin v. Hrynew significantly evolves the common law of contract by recognizing a general common law duty of good faith contractual performance, and ... [more] Full article
Crane Rental Operater Hoisted by Restrictive Covenants
Non-compete and non-solicit clauses are presumptively valid when connected to an agreement for purchase and sale of a business, the Supreme Court confirmed recently. While such sales may also give ... [more] Full article
Table Manners – Recipes for Negotiators: #2 The Mandate
Another integral aspect of the negotiating process is the mandate. Legal counsel as well as other individuals, often represent clients either as an individual or in a larger groups. Your mandate, or lack of mandate, can be crucial to your success, failure or to prolonging the negotiating process indefinitely. [more] Full article