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La Cour d’appel maintient le contrat à durée déterminée, mais annule l’indemnité de dommages aggravés, faute de preuve d’un préjudice mental allant au-delà du choc normal.
The court found wrongful dismissal without cause, upheld an eight-week contractual notice limit, and awarded damages for lost earnings, aggravated damages, punitive damages, and medical-expense losses.
Court allowed the appeal: the absolute exclusion clause at the end of article 3.1 was ultra vires to the extent it barred Lakeshore from allocating sewage capacity where s.86(1) would otherwise oblige supply; the ultra vires wording was severed under the agreement's severability clause and applicable principles; after severance the remaining promise (to provide sufficient capacity to permit full development of St. Clair Shores) was enforceable but no breach was proven on the evidence; alternatively the damages claimed were too remote; judgment below set aside and action dismissed.
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