In business and real estate, a broken promise can trigger devastating financial consequences. When a contract is breached or a fiduciary duty is violated, securing the right legal remedy is paramount to recovering your losses and protecting your investments.
Contractual Remedies: Beyond Financial Damages
The most common remedy for a breach of contract is an award of monetary damages designed to place the innocent party in the financial position they would have been in had the contract been fulfilled. Furthermore, the Supreme Court of Canada’s foundational ruling in Bhasin v. Hrynew, 2014 SCC 71, established an organizing principle of “good faith” and a strict duty of honest performance in contractual dealings.
However, when money is not an adequate remedy, courts can order equitable relief:
- Specific Performance: The court compels the breaching party to fulfill their exact contractual obligations. Following the Supreme Court decision in Semelhago v. Paramadanthil, [1996] 2 S.C.R. 415, specific performance for real estate transactions is generally reserved for properties that are proven to be truly “unique.”
- Rescission: This remedy unwinds the contract entirely, restoring both parties to their pre-contractual positions, often utilized in cases of fraud or fundamental misrepresentation.
Trusts and Unjust Enrichment
When disputes arise over the ownership of assets (such as real estate or corporate shares), litigation often moves into the realm of equitable trusts:
- Resulting Trusts: As clarified in Pecore v. Pecore, 2007 SCC 17, a resulting trust arises when one party gratuitously transfers property to another. The law presumes the recipient holds the property “in trust” for the original owner unless a gift was explicitly intended.
- Constructive Trusts: Used as a remedy for “unjust enrichment.” If you contributed significant labor or finances to a property owned by someone else without compensation, the court can impose a constructive trust. The leading case Kerr v. Baranow, 2011 SCC 10, modernized this framework, particularly in scenarios involving joint family ventures, allowing a claimant to secure a proprietary interest in the asset rather than just a monetary payout.
Commercial and trust litigation is profoundly complex. Trust Hashmi Law Group’s 17+ years of rigorous litigation experience to untangle fiduciary breaches, enforce contractual rights, and aggressively pursue the equitable remedies you deserve.
Legal disclaimer
The information provided in these articles is for general informational and educational purposes only and does not constitute legal advice. Reading this content, or contacting the Hashmi Law Group, does not establish a solicitor-client relationship. Civil and family litigation matters are highly complex and strictly fact-specific. Laws, statutes, and regulations are subject to change, and the application of case law heavily depends on the unique circumstances of each individual case. You should not act, or fail to act, based upon any information contained herein without first seeking the customized advice of a qualified attorney licensed to practice in your jurisdiction.
