Family Ties: How Nepotism Can Lead to Family Status Discrimination Claims

When it comes to Canada’s various employment laws, one thing is certain: job candidates and workers should be dealt with on the basis of individual merit. Nepotism in the workplace is the practice of favoring relatives or close friends for jobs, promotions or other professional opportunities. While generally frowned upon, there are no laws against nepotism. There are, however, laws against discrimination. Employers may choose to proactively prevent any issues…

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The Importance of Pleading: Lessons from 1417217 Ontario Inc. v. River Trail Estates Inc.

The Ontario Court of Appeal’s decision to overturn several of the trial judge’s findings in 1417217 Ontario Inc. v. River Trail Estates Inc., 2024 ONCA 491, serves as a crucial lesson for those involved in complex commercial litigation. The case underscores the necessity of precise pleadings and the importance of including all relevant parties and theories of liability. While there is much to discuss in the decision, a key question…

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Keep on Trucking – Risks to Assets Under Long Term Leases

Imagine this: One big bank, a truck leasing company, and a wood products wholesaler walked into a courtroom. Sounds like the start of a joke, right? It kind of is, but instead of a punchline, the result was a serious lesson about protecting assets under lease. A ruling from earlier this year in the Court of Appeal for Ontario provides critical insights for businesses that enter long term leases, particularly…

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Unlocking the Value of Warehouse Receipts

We all get receipts. At a B2C and B2B level. Sometimes we or our colleagues review them carefully. Often not. We might get a general sense the numbers are right and file them. Without careful consideration of the terms of the receipts. But not all receipts have the same legal significance. Some create binding contractual terms. Particularly receipts in the warehouse and logistics industry. We offer the following thoughts for…

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Ontario Employment Standards Could Invalidate Broad Arbitration Clauses

In a 2023 decision that could have consequences beyond the immediate dispute, the Ontario Superior Court of Justice held that an arbitration clause (the “Arbitration Agreement”) in a contract of employment which attempted to contract out of minimum standards in the Employment Standards Act, 2001, SO 2000, c. 41 (the “ESA”) is invalid. Key Facts In Nohdomi v. Callidus Capital Corporation, 2023 ONSC 4469 (“Nohdomi”), the defendants, Callidus Capital Corporation…

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Take Care When You Forbear – mortgage forbearance agreements do not automatically rank in the same priority as the mortgage being forborne.

It is well-known that the Bank of Canada’s interest rate increases over the past two years have caused financial strain on many Canadian households. In March 2024, Equifax Canada released a report raising alarm bells that credit delinquencies are rising, with the key indicator of missed mortgage payments being highest in Ontario and British Columbia. Mortgage lenders, aware of the impact higher rates have had on their borrowers, may be…

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The Challenge of Fresh Consideration in Amended Employment Agreements

All contracts require the legal elements of offer, acceptance, and a passing of ‘consideration’ between the contracting parties. Without these elements, the contract is neither binding nor enforceable. These same principles apply when an employer varies a pre-existing employment agreement. Without fresh consideration, unilateral changes to an employment agreement may render the contract unenforceable. Except for the rare case where an employment agreement explicitly provides otherwise, an employer cannot unilaterally…

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A Caution Before Expanding an Employee’s Job Duties: Risks of the Changed Substratum Doctrine

A change in job duties occurs when the terms of an employee’s role are materially changed over time, such as: a decrease/ increase in work hours, or a decrease/ increase in responsibility. In demoting an employee, through unilateral changes to the employment agreement, an employer runs the well-known risk of triggering a constructive dismissal claim. But what is the risk when duties are expanded? When an employer substantively expands an…

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Three-Months’ Mortgage Interest – To Charge or Not to Charge

Almost all mortgage agreements provide that if a mortgage goes into default, the borrower will be responsible for paying various fees and charges above the principal and interest.  Common among these is a fee equal to three months’ interest on the amount in arrears, which often appears on discharge statements when a mortgage is in default. However, apart from fees and charges that are genuine pre-estimates of reasonable administrative costs…

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