Paradis Honey Ltd, a seventh-generation apiary near Girouxville, Alberta, takes hives to BC for pollination contracts every spring.
AFSC offers linked AgriStability and AgriInsurance plans, requiring bees to be back in Alberta by May 31 for coverage.
This new deadline, changed in 2016 without consultation, was reverted to June 20 in 2021 due to producer opposition.
Paradis could not meet the May 31 deadline, affecting their best practices and BC contracts.
Consequently, Paradis did not obtain AgriInsurance for 2018 and 2020, suffering financial losses of $94,305 and $99,188 respectively.
AgriStability benefits were reduced by 70% plus insurance premiums due to non-compliance.
Legal Issues:
Paradis Honey Ltd sought relief from forfeiture due to inability to comply with the changed deadline.
Relief from forfeiture is considered under section 10 of the Judicature Act and section 520 of the Insurance Act.
The Court examined whether the deemed benefits clause could be considered unconscionable or if the non-compliance was inadvertent or deliberate.
Court's Analysis:
The Court found that the clause in question was clear and not ambiguous.
Relief from forfeiture requires consideration of the applicant's conduct, the breach's gravity, and the disparity between forfeited property value and damage caused by the breach.
The non-compliance by Paradis was deliberate and not due to imperfect compliance.
The jurisdiction to grant relief from forfeiture is limited to contractual penalties and forfeitures, not statutory ones.
The Court concluded that AFSC's decision, whether ill-advised or not, does not qualify for relief under the given legal principles.
Disposition:
The application by AFSC to dismiss Paradis Honey Ltd’s claim was allowed.
