Gross Negligence in Canadian Energy Contracts

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Volume 51, No 2 ISSN: 1925-8356   |   Courtesy of Canadian Energy Law Edition   |    View Original

Authors: Miles Pittman, Jaclyn Hesje, Adam Lamoureux

The narrow definition of gross negligence in the 2007 Canadian Association of Petroleum Landmen Operating Procedure highlights the varied definitions across oil and gas contracts of gross negligence. The jurisprudence with respect to gross negligence does not follow particular patterns, and focuses instead on each case’s specific facts; this has, in the author’s view, led contract drafters over time to specify in detail what is and is not gross negligence. The article provides a framework for analyzing situations where gross negligence may have occurred and provides contract drafting suggestions in respect of gross negligence.

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