The appellant and respondent entered into a ten-year contract for the supply of ethanol.
The contract contained price-protection provisions, including a requirement for the appellant to match the price of an alternate supplier if certain conditions were met.
When the respondent received a lower offer from an alternate supplier, the appellant refused to match it, arguing that the obligation was contingent on the development of an active market for ethanol in Ontario under another section of the contract.
The trial judge found that the price-match provision operated independently.
The Court of Appeal upheld the trial judge's decision, finding that the plain wording of the contract and the factual matrix supported the conclusion that the provision was a stand-alone obligation.