Duty of Good faith - revisited

In Bhatnagar v. Cresco Labs Inc., 2023 CarswellOnt 8360 (Ont. C.A.), the Court of Appeal addressed the issue of whether the Supreme Court of Canada had created a presumption of loss if the court deemed that a party had breached the duty of good faith. The Ontario Court of Appeal ruled that there was no intent by the Supreme Court of Canada to create this presumption of loss, and in fact, there is no presumption of loss in a breach duty of good faith claim. At paragraph 55, the Court ruled:

"I do not accept that Callow stands for the proposition that, where a party is found to have breached its duty of honest performance, the court must presume the aggrieved party is entitled to damages in the absence of an evidentiary foundation of a lost opportunity."The party claiming losses arising from the breach has the evidentiary burden to prove their losses.

Niki Kanavas