This past Friday, the Supreme Court of Canada released its
much-anticipated decision in C.M. Callow Inc v Tammy Zollinger
(“Callow”), the first of two appeals heard in December 2019 seeking
clarification on the scope of the organizing principle of good
faith recognized in Bhasin v Hrynew
(“Bhasin”).
Many had hoped that the decision would shed light on the scope
of the duty of good faith and honest performance recognized in
Bhasin, and provide clear guidance to lower courts and
commercial parties on their contractual obligations.
However, the decision which resulted in a 5-3-1 split across the
court (Kasirer J writing for the majority, Brown J concurring, and
Côté J in dissent) may add further uncertainty to the
jurisprudence around obligations of good faith.
