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ARTICLE · 30 JULY 2021

Interpreting Releases: The Supreme Court Of Canada Clarifies The Correct Approach

Stikeman Elliott LLP
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On July 23, 2021, the Supreme Court of Canada released its decision in Corner Brook (City) v. Bailey ("Bailey"), clarifying how releases should be interpreted.

CanadaLitigation, Mediation & Arbitration
Alexandra Urbanski
Alexandra Urbanski
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On July 23, 2021, the Supreme Court of Canada released its decision in  Corner Brook (City) v. Bailey  (“Bailey”), clarifying how releases should be interpreted.

Summary

  • The Supreme Court ruled that a release is a contract and the general principles of contractual interpretation articulated in Sattva Capital Corp v. Creston Moly Corp. (“Sattva ”) apply.
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  • The rule set out in London and South Western Railway v. Blackmore  (1870), L.R. 4 H.L. (the “Blackmore Rule”) — which stated that the general words in a release are limited to those things which were specifically in the contemplation of the parties at the time the release was given — has outlived its usefulness and is subsumed entirely by the current approach to contractual interpretation set out in

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