A ruling by the British Columbia Court of Appeal, the highest level of provincial court, has set a limit on what constitutes a frustrated employment contract when a business is closed for unforeseen circumstance.
The decision will influence courts deciding on frustrated contracts in jurisdictions across the country, says labour and employment lawyer Matthew Allard, associate at Fasken in Vancouver.
“When an employer wants to rely on frustration, they need to be careful, in particular, when relying upon an intervening event that may have temporarily eliminated the business,” says Allard.
