Law360 Canada (December 18, 2020, 3:05 PM EST) -- Appeal by CM Callow Inc. (Callow) from a judgment of the Ontario Court of Appeal that set aside a trial judgment in Callow’s favour. In 2012, the respondent group of condominium corporations (Baycrest) entered into a two-year winter maintenance contract and a separate summer maintenance contract with Callow. The winter maintenance agreement entitled Baycrest to terminate the agreement on 10 days’ written notice. In early 2013, Baycrest decided to terminate the winter maintenance agreement but chose not to inform Callow of its decision. During the spring and summer of 2013, Callow and Baycrest discussed the renewal of the winter maintenance agreement. Callow believed it was likely to obtain the renewal and that Baycrest was satisfied with its services. In the summer of 2013, Callow performed extra work beyond the summer maintenance contract at no charge, as an incentive for Baycrest to renew the winter maintenance agreement. Baycrest gave Callow 10 days’ notice of its decision to terminate the winter maintenance agreement in September 2013. The trial judge allowed Callow’s claim for breach of contract. She found Baycrest breached the winter maintenance agreement by acting in bad faith by actively deceiving Callow. She awarded damages of $80,742 to place Callow in the same position as if the breach had not occurred, which included lost profits, wasted expenditures and an unpaid invoice. The Court of Appeal found the trial judge erred by improperly expanding the duty of honest performance beyond the terms of the winter maintenance agreement and any deception related to a new contract not yet in existence....