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ARTICLE · 12 JULY 2021

New Developments On The Oppression Remedy And Bad Faith

The duty of honest contractual performance and the oppression remedy are two key risk areas facing businesses, particularly closely held corporations.

CanadaCorporate/Commercial Law

Haack v Secure Energy (Drilling Services) Inc., 2021 ABQB 82

The duty of honest contractual performance and the oppression remedy are two key risk areas facing businesses, particularly closely held corporations. The decisions in Haack v. Secure Energy (Drilling) Inc.  2021 ABQB 82, and  2021 ABQB 342, in which Dentons was counsel to the plaintiff, show how a corporation and its directors can run afoul of its unanimous shareholders' agreement, employment contracts and the reasonable expectations of shareholders, resulting in significant liability for damages and solicitor client costs.

Takeaways

This case has key takeaways for corporations and directors on how to handle relationships with minority shareholders and employees and how conduct before and during litigation can result in an award of solicitor client costs:

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