Special Report

The Canadian Law of Contractual Indemnities: How Courts Interpret Liability Assumed for Another Party

About this publication

A business gets sold, the money changes hands and everyone assumes the old liabilities have been dealt with. Years later, a claim over work performed before closing can turn that assumption into an expensive dispute about the indemnity clause.

This analysis traces the historical Canada Steamship principles, the Supreme Court's contextual approach in Sattva and the publicly reported Westlock and Strongco litigation. It considers when a party can shift responsibility for its own negligence, why the identity of the claimant matters and what should be clear before an agreement is signed. The Alberta cases are discussed within the limits of available reporting, not as though their complete reasons had been independently reviewed.

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