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ARTICLE · 19 SEPTEMBER 2019

A Comparative Look At Good Faith And Changed Circumstances, Hardship And More

The Canadian Supreme Court's decision in Churchill Falls (Labrador) Corporation Limited v Hydro-Québec

CanadaLitigation, Mediation & Arbitration

Introduction

This article focuses on the Supreme Court of Canada decision in Churchill Falls (Labrador) Corporation Limited v Hydro-Québec 2018 SCC 4611. To most Canadians, the mere mention of Hydro-Québec and Churchill Falls in the same sentence spontaneously evokes the long-term contract at issue in this case. That contract has been a very public bone of contention between the Province of Québec and the Province of Newfoundland for more than 40 years. The Supreme Court's decision is used here as a launch pad for a broader discussion of good faith, changed circumstances and hardship, and the circumstances in which an arbitrator or judge may be called upon to alter the terms of a contract. These issues frequently arise in international arbitration.

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