Court Rules Party Cannot Rely On Exculpatory Clause To Avoid Liability For Deceit

In NEP Canada ULC v MEC OP LLC, 2021 ABQB 180 (NEP), the Alberta Court of Queen's Bench rendered an important judgment ruling on the interplay between an action for a deceitful contractual representation and an exclusionary clause contained within that same contract.  In short, a party will not be able to escape liability through reliance on a contractual limitation of liability clause where the party has made fraudulent misrepresentations in that very contract. In this case, the consequences of this finding were significant, as the Court ultimately awarded the Plaintiff approximately $185,000,000 in damages, which included a $120,750,000 award for loss of opportunity, despite a limitation of liability clause which barred liability for consequential and indirect damages, including loss of profits.