Feb 17, 2021

Contracts in Québec: Limitation of Liability Clauses

6362222 Canada inc. c. Prelco inc., 2019 QCCA 1457 (CanLII)
The Respondent, Prelco Inc., a company specializing in the processing of flat glass, sued the Applicant, 6362222 Canada Inc. (Créatech), for additional costs and loss of profits associated with a project to implement an integrated management system for its operations. Créatech contested the application and filed a cross-application for unpaid invoices. The Superior Court found Créatech was at fault in its implementation approach, the service provider was responsible for determining the appropriate type of implementation and this was an essential obligation. In its view, this fundamental error giving rise to the damage made the limitation of liability clause in the agreement inapplicable. Créatech was ordered to pay Prelco $1,872,266 with interest and the additional indemnity. The C.A. found the trial judge had not erred in determining the applicable principles or in applying those principles to the facts. The appeal and the incidental appeal were dismissed.