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Daniel (Dan) R. Chubb

Corporate Commercial Lawyer at Bennett Jones Edmonton

Partner

Joan Bilsland

Knowledge Management Research Lawyer at Bennett Jones

Knowledge Management Research Lawyer

Luke Stretch

Commercial Real Estate Lawyer at Bennett Jones Calgary

Associate

Canadian courts generally treat real estate deposits as forfeitable upon a purchaser&rsquo;s default, distinct from unenforceable penalty clauses. However, under the Redstone factors, courts may grant relief from forfeiture where a deposit is grossly disproportionate to the vendor&rsquo;s damages or where retaining it would be unconscionable in the circumstances.

When A Deposit Becomes A Penalty

When a Deposit Becomes a Penalty: Relief From Forfeiture in Real Estate Transactions

Stephen D. Burns

Energy & Infrastructure Technology Lawyer | IT/OT & Markets

Partner, Trademark Agent

J. Sébastien A. Gittens

Technology Lawyer & Trademark Agent

Scott H. D. Bower KC

Corporate, Commercial, Securities and Energy Lawyer at Bennett Jones Calgary

Partner 

Canadian courts and law societies, alike, are faced with an ever-evolving challenge: straddling the line between recognizing the potential benefits of emergent generative artificial intelligence (GenAI), while balancing the associated risks of using this technology. Principle to these associated risks is the ability of GenAI to "hallucinate" (i.e., generate incorrect information).

Unchartered Territories Canadian Courts and Law Societies Grapple with the Use of Generative

Unchartered Territories: Canadian Courts and Law Societies Grapple with the Use of Generative Artificial Intelligence Tools

Julia E. Schatz

Commercial & Regulatory Lawyer | Environmental & Agribusiness

The ability to extend a limitation period for an environmental claim is subject to considerable judicial discretion, the Court of Appeal of Alberta recently held in <a rel="noopener noreferrer" rel="noopener noreferrer" href="https://www.canlii.org/en/ab/abca/doc/2024/2024abca60/2024abca60.html" target="_blank">Paramount Resources Ltd v Grey Owl Engineering Ltd, 2024 ABCA 60</a>. Section 218 of Alberta's Environmental Protection and Enhancement Act, RSA 2000, c E-12 gives a judge discretion to extend a limitation period "where the basis for the proceeding is an alleged adverse effect resulting from the alleged release of a substance into the environment".  However, no extension was granted in the case of a claim for remediation costs against other alleged contributors to a pipeline spill.

Extending Discretion Balancing the Limitations Act and Environmental Remediation Claims

Extending Discretion: Balancing the Limitations Act and Environmental Remediation Claims

Russell J. Kruger

Research Lawyer at Bennett Jones Calgary

Counsel

Separate corporate personality is not a loophole or technicality, but is an essential principle of corporate law, the Alberta Court of Appeal recently reiterated in <a rel="noopener noreferrer" href="https://canlii.ca/t/jzbmj" target="_blank">Condominium Corporation No. 0828219 v Carrington Holdings Ltd., 2023 ABCA 222</a> [Carrington] and <a href="https://canlii.ca/t/jzf2t" target="_self">Swanby v Tru-Square Homes Ltd, 2023 ABCA 224</a> [Swanby]. Together, Carrington and Swanby highlight the powerful impact of separate corporate personality on shareholder liability for the actions of their corporations.

Separate Corporate Personality Remains Alive and Well in Alberta

Ashley M. White

Corporate & Commercial Transactions Lawyer | Power & Energy

Jason D. Roth

Construction & Infrastructure Lawyer | EPC & Project Development

Larissa D. Lees

Regulatory Lawyer at Bennett Jones Calgary

Canada and Alberta have finalized a Co-operation Agreement to streamline impact assessments and reduce duplication between federal and provincial processes. The framework advances a &ldquo;one project, one review&rdquo; approach aimed at improving efficiency, coordination and regulatory certainty for major projects.

Alberta and Canada Sign Co-operation Agreement to Reduce Assessment Duplication

Samantha Lush

Corporate Commercial Lawyer at Bennett Jones Calgary

Alixe A.L. Cameron

Commercial Real Estate Lawyer

Kateryna Korneliuk

Articling Student at Bennett Jones in Calgary

Articling Student  

Mortgage agreements in Alberta commonly include waivers of Sections 49 and 52 of the Expropriation Act, which can significantly alter how compensation is allocated when land is expropriated. These clauses may shift financial risk from lenders to borrowers and affect entitlement to market value-based compensation and disturbance payments. This blog examines the legal enforceability of such waivers and highlights the importance of clear drafting and independent legal advice.

Drafting Cautiously Waiving Statutory Protections

Sections 49 and 52 of Alberta's Expropriation Act in Mortgage Agreements

Drafting Cautiously: Waiving Statutory Protections 

Sophie Virji

Tax Lawyer at Bennett Jones Calgary

Anna Lekach

The Tax Court of Canada&rsquo;s decision in ExxonMobil Canada Resources Company v. The King highlights the risks of imprecise language in internal corporate communications during CRA audits. The case demonstrates how seemingly innocuous statements can be misconstrued and relied upon to support reassessment positions. It underscores the importance of careful, deliberate drafting to mitigate audit risk and avoid unintended interpretations.

The Issue with Misconstrued Internal Statements

Learnings from ExxonMobil Canada Resources Company v. The King

Jacob Schroeter

Commercial Transactions Lawyer at Bennett Jones Toronto

Quinn Rozwadowski

Articling Student at Bennett Jones in Toronto

Articling Student

This article examines the Ontario Court of Appeal&rsquo;s decision in McDonald&rsquo;s v. North Elgin, confirming that landlords cannot terminate long-term leases due to missing Planning Act consent where the approval process remains ongoing. It highlights the importance of &ldquo;saving clauses,&rdquo; cooperation obligations, and the retroactive curing effect of consent under the Planning Act. The decision reinforces that parties must honour their contractual commitments despite administrative delays.

Anchored Down Long Term Leases and the Limits on Landlord Exit Rights

Anchored Down:  Long-Term Leases and the Limits on Landlord Exit Rights

David J. Wahl, FCIArb

Construction Arbitration & Litigation Lawyer at Bennett Jones Calgary

Christopher Petrucci

Commercial Litigation Lawyer at Bennett Jones Calgary

Brian P. Reid

Construction & Energy Litigation Lawyer

The Alberta Court of King&rsquo;s Bench in Phoenix Treatment Systems Ltd v 1924613 Alberta Ltd confirmed that not all activities qualify as lienable work capable of extending lien deadlines under the Prompt Payment and Construction Lien Act. The decision reinforces that only work sufficiently connected to the construction process will extend the registration period. Parties should take care to accurately identify the last day of lienable work, as errors may invalidate an otherwise enforceable lien.

Alberta's Limitation Laws

From the Same Authors

When a Deposit Becomes a Penalty: Relief From Forfeiture in Real Estate Transactions

Unchartered Territories: Canadian Courts and Law Societies Grapple with the Use of Generative Artificial Intelligence Tools

Extending Discretion: Balancing the Limitations Act and Environmental Remediation Claims

Latest Insights

Alberta and Canada Sign Co-operation Agreement to Reduce Assessment Duplication

Drafting Cautiously: Waiving Statutory Protections

The Issue with Misconstrued Internal Statements

Anchored Down: Long-Term Leases and the Limits on Landlord Exit Rights

Stay Informed. Stay Ahead.