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ARTICLE · 26 AUGUST 2016

Agricultural Law NetLetter - Sunday, August 7, 2016

Miller Thomson
Miller Thomson
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Miller Thomson

Miller Thomson LLP ("Miller Thomson") is a national business law firm with approximately 500...

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A twice-monthly current awareness reviewing recent cases on land use, marketing boards, environmental issues, creditor rights, animal grain, import/export and other matters in agricultural context.

CanadaReal Estate and Construction
Brian Kaliel K.C.
Brian Kaliel K.C.
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HIGHLIGHTS

  • The Supreme Court of Canada has concluded that Quebec's ASRA Farm Income Stabilization Program is not a subsidy program governed by public law, but a contract governed by private law principles under Quebec law. The Court has also concluded that the contract is an innominate contract - not a contract of insurance within the meaning of the Civil Code of Quebec which must be interpreted based on the "reasonable expectations of the insured". However, La Financiere agricole du Quebec, which administers the ASRA Program, is nevertheless required to exercise its contractual powers in accordance with the requirements of good faith and contractual fairness. The Court concluded that La Financiere did act in good faith and contractual fairness when making a collective adjustment to the benchmark farm income as a result of federal subsidies paid to farm producers in 2007, rather than making adjustments for these subsidies on an individual basis. The Court upheld

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