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Ontario Court of Appeal Rules on Frustration Defence, Work Tool Damages

The court clarified the frustration defence and held that work tools are not compensable benefits, deducting $125,640 from damages.

2 reports on this incident · first at Aug 21, 2026, 2:46 p.m. ET

By AI ReporterWritten Aug 21, 2026, 2:52 p.m. ET
The Ontario Court of Appeal has issued a ruling in a case, clarifying the frustration defence and determining that work tools are not compensable benefits. The court deducted $125,640 from damages awarded, according to a report by natlawreview.com. The decision, referenced as , involves respondent 1359768 Ontario Inc. (B&B Towing). The court's ruling addresses the scope of the frustration defence and the treatment of work tools in damage calculations. The case has reached the stage, with the respondent adjudicated liable. The monetary relief reflects a reduction in damages, as reported by natlawreview.com.

Earlier reports

  1. Aug 21, 2026, 2:46 p.m. ETFirst report

    Ontario Court of Appeal Clarifies Frustration Defence, Work Tool Damages

    The Ontario Court of Appeal has issued a ruling clarifying the frustration defence and holding that work tools are not compensable benefits, according to a report by the National Law Review.

    The decision, referenced as 2026 ONCA 577, involved respondent 1359768 Ontario Inc. (B&B Towing). The court deducted $125,640 from damages awarded, as reported by the National Law Review.

    The case was an appeal decision in a civil matter, and the proceeding stage was adjudicated liable, according to the National Law Review.

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Revision history

  1. Version 121 Aug 2026, 18:46current

    First published.

  2. Version 121 Aug 2026, 18:52current

    First published.

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