«However, as appellate
interpretation of standard form contracts will have greater precedential value, this should eventually reduce litigation and limit future contractual disputes around the standard form clauses,» said Bombier.
Where, like here, the matter involves
the interpretation of a standard form contract, the interpretation at issue is of precedential value, and there is no meaningful factual matrix specific to the parties to assist the interpretation process, this interpretation is better characterized as a question of law subject to a correctness review.
The interpretation of a standard form contract is significant to more than the immediate parties to the contract.
In Ledcor, the Supreme Court articulated
the interpretation of a standard form contract as an exception to the rule that contractual interpretation by a specialized arbitrator is a question of mixed fact and law subject to deferential review on appeal.
In, Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co, 2016 SCC 37, the Supreme Court of Canada has held that
the interpretation of a standard form contract is a matter of law alone, and not a matter of mixed fact and law.
The court held that an appeal from a trial judge's
interpretation of a standard form contract, that has precedential value and does not require engagement with any meaningful factual matrix, is a question of law that should be reviewed for correctness.
It relied on another recent decision of the Supreme Court in Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co, where Wagner J. (as he then was) wrote that
interpretation of a standard form contract can, in certain situations, be a question of law subject to correctness review standard (the stricter and less deferential review standard).
Not exact matches
«In a
standard form contract, for purposes
of insuring, consistency
of interpretation obviously is a key factor, for the benefit
of both insurers and insured.
The Court reiterated the principles
of contractual
interpretation as they apply to
standard form contracts.
By holding that appellate courts are to review
interpretation of «
standard form»
contracts on a correctness
standard, the court protects the rule
of law.
The Supreme Court
of Canada has provided guidance to the insurance industry on the
interpretation of standard form insurance
contracts in the recent decision
of Ledcor Construction Ltd. v. Northbridge.
Lead counsel in an ICC arbitration in Paris, conducted in French, brought by two major oil companies concerning the
interpretation of the State's
standard form of production - sharing
contract.
The
interpretation of standard form industry
contracts can be such a question: Ledcor Construction v Northbridge Indemnity Insurance Co, 2016 SCC 37 (CanLII) at para 34, [2016] 2 SCR 23.