The appellant appealed a trial judgment granting declaratory relief that limited the respondent's obligation to indemnify the appellant for royalties payable under a net smelter return royalty agreement.
The trial judge found the indemnification obligation was limited to a flat rate of 0.013% NSR, as indicated in the schedules to the purchase agreements, rather than the sliding scale royalty actually required by the underlying agreement.
The Court of Appeal dismissed the appeal, upholding the trial judge's conclusion that the specific references to the 0.013% NSR rate reflected the parties' intention and overrode general references to assuming all obligations.
