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Case information

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40650

Amacon Alaska Development Partnership v. ARC Digital Canada Corp.

(British Columbia) (Civil) (By Leave)

Docket

Judgments on applications for leave to appeal are rendered by the Court, but are not necessarily unanimous.

Parties

Please note that in the case of closed files, the “Status” column reflects the status of the parties at the time of the proceedings. For more information about the proceedings and about the dates when the file was open, please consult the docket of the case in question.

Main parties

v.

Counsel

Party: Amacon Alaska Development Partnership

Counsel
Scott Griffin
Connor Bildfell
McCarthy Tétrault LLP
2400-745 Thurlow Street
Vancouver, British Columbia
V6E 0C5
Telephone: (604) 643-7959
FAX: (604) 643-7900
Email: sgriffin@mccarthy.ca

Party: ARC Digital Canada Corp.

Counsel
David A Garner
Alexander Holburn Beaudin & Lang LLP
2700-700 West Georgia Street
Vancouver, British Columbia
V7Y 1B8
Telephone: (604) 484-1708
Email: dgarner@ahbl.ca
Agent
Matthew Estabrooks
Gowling WLG (Canada) LLP
2600 - 160 Elgin Street
Ottawa, Ontario
K1P 1C3
Telephone: (613) 786-0211
FAX: (613) 563-9869
Email: matthew.estabrooks@gowlingwlg.com

Summary

Keywords

Contracts — Leases — Commercial contracts — Validity — Performance — Breach — How should Canadian courts reconcile the law of good faith and other principles of Canadian contract law — Bhasin v. Hrynew, 2014 SCC 71, [2014] 3 S.C.R. 494.

Summary

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

When the applicant purchased the premises in which the respondent was leasing space, the two parties negotiated the terms of a lease modification agreement. In return for the respondent agreeing to vacate the premises early and give up an option to renew, the applicant was to pay an amount of $290,000 upon the execution of the agreement by the respondent and another $290,000 when the premises were vacated. When the respondent waited to execute the agreement until it had negotiated a new lease for alternative premises one month later, the applicant refused to sign the agreement and did not pay the initial $290,000. Without having budgeted money to make a phased move, the respondent did not vacate by the earlier agreed dated. The applicant then signed the agreement and paid the initial $290,000 but refused to pay the second amount on the basis that the respondent had not vacated the premises as agreed. It also sought to charge the respondent double rent for the overholding period. The respondent brought an action for a declaration that the agreement was valid and binding and had been breached by the applicant. Applying the principles of good faith set out in Bhasin v. Hrynew, 2014 SCC 71, [2014] 3 S.C.R. 494, the court found that the circumstances overwhelmingly established that the applicant acted dishonestly towards the respondent. The court awarded damages to the respondent in the amount of $369,260 and dismissed the applicant’s counterclaim. The Court of Appeal for British Columbia dismissed the applicant’s appeal.

Lower court rulings

August 17, 2021
Supreme Court of British Columbia

2021 BCSC 1612, S194760

Respondent awarded damages in the amount of $369,260; applicant’s counterclaim dismissed.

January 20, 2023
Court of Appeal for British Columbia (Vancouver)

2023 BCCA 34, CA47757

Appeal dismissed.

Memorandums of argument on application for leave to appeal

The memorandums of argument on an application for leave to appeal will be posted here 30 days after leave to appeal has been granted unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of the memorandum by filing out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a memorandum of argument or want to use a memorandum of argument, please contact the author of the memorandum of argument directly. Their name appears at the end of the memorandum of argument. The contact information for counsel is found in the “Counsel” tab of this page.

Downloadable PDFs

Not available

Factums on appeal

The factums of the appellant, the respondent and the intervener will be posted here at least 2 weeks before the hearing unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of factums by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a factum or want permission to use a factum, please contact the author of the factum directly. Their contact information appears on the first page of each factum.

Downloadable PDFs

Not available

Webcasts

Not available.

Docket

Judgments on applications for leave to appeal are rendered by the Court, but are not necessarily unanimous.

List of proceedings
Date Proceeding Filed By
(if applicable)
2023-09-11 Close file on Leave
2023-09-07 Copy of formal judgment sent to Registrar of the Court of Appeal and all parties
2023-09-07 Judgment on leave sent to the parties
2023-09-07 Judgment of the Court on the application for leave to appeal, The application for leave to appeal from the judgment of the Court of Appeal for British Columbia (Vancouver), Number CA47757, 2023 BCCA 34, dated January 20, 2023, is dismissed with costs.
Dismissed, with costs
2023-07-31 All materials on application for leave submitted to the Judges, for consideration by the Court
2023-05-01 Applicant's reply to respondent's argument, (Book Form), Missing:
- Proof of service (rec'd 2023-05-10), Completed on: 2023-05-10
Amacon Alaska Development Partnership
2023-04-21 Certificate (on limitations to public access), Form 23A ARC Digital Canada Corp.
2023-04-21 Notice of name ARC Digital Canada Corp.
2023-04-21 Respondent's response on the application for leave to appeal, (Book Form), Completed on: 2023-04-21, (Printed version due on 2023-04-28) ARC Digital Canada Corp.
2023-03-22 Letter acknowledging receipt of an incomplete application for leave to appeal and without formal Court of Appeal order, FILE OPENED: 2023-03-22
2023-03-20 Certificate (on limitations to public access), Form 23A, (Printed version filed on 2023-03-22) Amacon Alaska Development Partnership
2023-03-20 Notice of name, (Printed version filed on 2023-03-22) Amacon Alaska Development Partnership
2023-03-20 Application for leave to appeal, (Book Form), Missing:
- CA Order (rec'd 2023-05-16), Completed on: 2023-06-01, (Printed version filed on 2023-03-22)
Amacon Alaska Development Partnership

Parties

Please note that in the case of closed files, the “Status” column reflects the status of the parties at the time of the proceedings. For more information about the proceedings and about the dates when the file was open, please consult the docket of the case in question.

Main parties

Main parties - Appellants
Name Role Status
Amacon Alaska Development Partnership Applicant Active

v.

Main parties - Respondents
Name Role Status
ARC Digital Canada Corp. Respondent Active

Counsel

Party: Amacon Alaska Development Partnership

Counsel
Scott Griffin
Connor Bildfell
McCarthy Tétrault LLP
2400-745 Thurlow Street
Vancouver, British Columbia
V6E 0C5
Telephone: (604) 643-7959
FAX: (604) 643-7900
Email: sgriffin@mccarthy.ca

Party: ARC Digital Canada Corp.

Counsel
David A Garner
Alexander Holburn Beaudin & Lang LLP
2700-700 West Georgia Street
Vancouver, British Columbia
V7Y 1B8
Telephone: (604) 484-1708
Email: dgarner@ahbl.ca
Agent
Matthew Estabrooks
Gowling WLG (Canada) LLP
2600 - 160 Elgin Street
Ottawa, Ontario
K1P 1C3
Telephone: (613) 786-0211
FAX: (613) 563-9869
Email: matthew.estabrooks@gowlingwlg.com

Summary

Keywords

Contracts — Leases — Commercial contracts — Validity — Performance — Breach — How should Canadian courts reconcile the law of good faith and other principles of Canadian contract law — Bhasin v. Hrynew, 2014 SCC 71, [2014] 3 S.C.R. 494.

Summary

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

When the applicant purchased the premises in which the respondent was leasing space, the two parties negotiated the terms of a lease modification agreement. In return for the respondent agreeing to vacate the premises early and give up an option to renew, the applicant was to pay an amount of $290,000 upon the execution of the agreement by the respondent and another $290,000 when the premises were vacated. When the respondent waited to execute the agreement until it had negotiated a new lease for alternative premises one month later, the applicant refused to sign the agreement and did not pay the initial $290,000. Without having budgeted money to make a phased move, the respondent did not vacate by the earlier agreed dated. The applicant then signed the agreement and paid the initial $290,000 but refused to pay the second amount on the basis that the respondent had not vacated the premises as agreed. It also sought to charge the respondent double rent for the overholding period. The respondent brought an action for a declaration that the agreement was valid and binding and had been breached by the applicant. Applying the principles of good faith set out in Bhasin v. Hrynew, 2014 SCC 71, [2014] 3 S.C.R. 494, the court found that the circumstances overwhelmingly established that the applicant acted dishonestly towards the respondent. The court awarded damages to the respondent in the amount of $369,260 and dismissed the applicant’s counterclaim. The Court of Appeal for British Columbia dismissed the applicant’s appeal.

Lower court rulings

August 17, 2021
Supreme Court of British Columbia

2021 BCSC 1612, S194760

Respondent awarded damages in the amount of $369,260; applicant’s counterclaim dismissed.

January 20, 2023
Court of Appeal for British Columbia (Vancouver)

2023 BCCA 34, CA47757

Appeal dismissed.

Memorandums of argument on application for leave to appeal

The memorandums of argument on an application for leave to appeal will be posted here 30 days after leave to appeal has been granted unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of the memorandum by filing out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a memorandum of argument or want to use a memorandum of argument, please contact the author of the memorandum of argument directly. Their name appears at the end of the memorandum of argument. The contact information for counsel is found in the “Counsel” tab of this page.

Downloadable PDFs

Not available

Factums on appeal

The factums of the appellant, the respondent and the intervener will be posted here at least 2 weeks before the hearing unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of factums by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613‑996‑7933 or at 1‑888‑551‑1185.

If you have questions about a factum or want permission to use a factum, please contact the author of the factum directly. Their contact information appears on the first page of each factum.

Downloadable PDFs

Not available

Webcasts

Not available.

Date modified: 2025-02-27