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The Anti-Deprivation Rule for Construction and Contracting Parties in Canada

On October 2, 2020, the Supreme Court of Canada rendered its decision upholding the anti-deprivation rule in the context of a dispute between two construction parties. Construction companies and commercial parties must be mindful that liquidated damages clauses and other payment clauses will be unenforceable if they are triggered by events of bankruptcy or insolvency.

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