FRAUD AND MISREPRESENTATION - Fraudulent misrepresentation - Specific elements - Recklessness of truth or falsity

Law360 Canada ( December 1, 2017, 9:02 AM EST) -- Appeal by the defendant, Yangarra Resources, from a chambers decision granting summary judgment in favour of the plaintiff, Precision Drilling Canada Limited Partnership. The plaintiff sought payment of unpaid fees for drilling three oil wells for the defendant. The parties utilized a standard form contract reflecting a "no-fault" industry practice in which each party bore any risk of damages to its own assets. The defendant refused payment on the basis of breach of contract, gross negligence, willful misconduct, fraudulent misrepresentation, and breach of duties of honesty and good faith. The defendant relied upon drilling difficulties acknowledged by the plaintiff that resulted in the defendant losing $300,000 worth of equipment. The plaintiff relied upon the risk and liability exclusion provisions within the parties' contract. A Master granted summary judgment in favour of the plaintiff. The defendant's request for set-off and/or counterclaim for damages was dismissed. On appeal, a chambers judge affirmed the decision. The defendant appealed to the Court of Appeal....
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