
Publication
How the new Building Canada Act works
On June 26, Bill C-5, the One Canadian Economy Act, received royal assent. The One Canadian Economy Act introduces two pieces of legislation aimed at bolstering economic development in Canada.
Global | Publication | June 2025
Chugga Chugg Pty Ltd (Chugga Chugg) entered into a contract with German shipyard Nobiskrug GmbH (Nobiskrug) for the design, build and delivery to Chugga Chugg of a luxury yacht (the Contract). Under the Contract, Nobiskrug’s parent, Privinvest Holding SAL (Privinvest) provided a parent guarantee for €9,955,000 securing Privinvest’s performance under the Contract (the Guarantee).
Both Chugga Chugg and Nobiskrug served rival termination notices in 2020, before Nobiskrug commenced arbitration proceedings against Chugga Chugg in June 2020. Part way through these arbitration proceedings Nobiskrug entered into preliminary insolvency.
Two awards were given in Chugga Chugg’s favour, following which Chugga Chugg sent a letter of demand to Privinvest under the Guarantee, following Nobiskrug’s failure to pay.
The Court found that Nobiskrug had no legitimate basis for its purported termination, and addressed several key issues:
The Court then turned to the matter of the Guarantee. Clause 2 of the Guarantee outlined conditions under which the Guarantee was triggered, providing:
“If an alleged breach or termination is uncontested by the Builder, we shall procure performance or pay as required, on first demand being made by the Owner. If the alleged breach or termination is contested by the Builder, we shall procure performance or pay as required against presentation of both (a) a final unappealable award in favour of the Owner … and (b) a written demand by the Owner…”
The Court found that the conditions triggering the Guarantee required a breach by Nobiskrug to be established, and as such the Guarantee was a “see to it” guarantee. In addition, the Court found that where there was no positive admission of liability by Nobiskrug in the arbitration, the breach was “contested”. Barring such an admission, or a settlement, with or without admission, a breach would be “contested” especially in circumstances where arbitration proceedings have commenced.
Publication
On June 26, Bill C-5, the One Canadian Economy Act, received royal assent. The One Canadian Economy Act introduces two pieces of legislation aimed at bolstering economic development in Canada.
Publication
In this edition we report on the Law Commission’s interim statement on 1954 Act reform following its two November consultations. We then examine the facts, judgments and implications of 3 recent cases: Emily Colville comments on the progress of a case determining whether or not a roof top garden should be considered a “storey” for the purposes of the Building Safety Act 2022.
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