b'BENCHMARKSThe Court confirmed that a release mayrelating to partnership accounts mayConstruction projects involve a range cover an unknown claim with sufficientrelease any claims arising out of aof potential legal liability arising from a language and does not necessarily needpartnership. But that release should notvariety of contracts (e.g. prime contracts, to precisely define the exact claimsnecessarily preclude a claim that latersubcontracts and supplier agreements), that fall within its scope. It recognizedarises if tree roots from one partnerstort duties at law (e.g. negligence) and that by entering into a release, partiesproperty damage the foundation of the often look to bargain for finality. Theneighbouring partners house. statutory obligations (e.g. environmental releasor (the party releasing the otherThe Court also indicated that, in someobligations). Parties should consider party) takes on the risk of relinquishingcases, a distinction may be drawnwhether the wording of releases ought the value of the claims he or she mightbetween claims based on facts knownto contemplate the release of unknown have had, and the releasee (the partyto both parties at the time of the releaseissues that could arise in the future, or being released) pays for the guaranteeand claims based on facts unknownexclude matters that are not intendedthat no such claims will be brought. to both parties at the time of theto be released (e.g. ongoingHowever, the Court then discussed therelease. The ultimate question, thewarranty obligations).features of releases that may give riseCourt stated, is whether a claim is the to the need for careful interpretation.type of claim to which the release isThose involved in construction projects, It commented that releases are oftendirected, which depends on the wordingwhether executing or accepting a expressed in the broadest possibleand surrounding circumstances of therelease, should carefully consider the words, and despite their wording,release in each case. wording of any proposed release, and they must be interpreted in a mannerTAKEAWAYS FORconsistent with the surroundingCONSTRUCTION DISPUTES the context in which a release is being circumstances known to the parties atIn a construction context, releases areprovided, with their legal counsel. time of execution. As a result, a courta common component of settlementsNote: This summary is of a general may interpret the release as intendedbetween owners and contractors, to apply only to claims of the generalas well as between contractors andnature only and is not exhaustive of subject matter the parties intended subcontractors. Care should be taken toall possible legal rights or remedies. to release.ensure that the wording of the release isReaders should consult a legal The Court provided an example: aappropriate for the circumstances of professional for specific advice in any release between business partnersthe settlement. particular situation.Issue 4 Winter Edition 2021 BUILD MANITOBA 23'