La responsabilité contractuelle et extracontractuelle des banques : développements récents.

May 1, 2011

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May 6, 2026

Eight partners recognized as leaders in Canada for their expertise in infrastructure, according to Lexpert

On May 6, 2026, Lexpert recognized the expertise of five of our partners in its 2026 Lexpert Special Edition:Infrastructure. Laurence Bich-Carrière, Jean-Sébastien Desroches, Christian Dumoulin, Nicolas Gagnon, Édith Jacques, Marc-André Landry, Ouassim Tadlaoui and André Vautour now rank among Canada’s leaders in supporting economic players in the infrastructure industry. Laurence Bich-Carrière, is a member of the Quebec and Ontario Bar Associations, Laurence Bich-Carrière practices within the Litigation and Dispute Resolution group, in a versatile civil and commercial litigation practice specializing in complex litigation (class actions, appeals, extraordinary remedies, private international law). Jean-Sébastien Desroches practises business law and focuses primarily on mergers and acquisitions, infrastructure, renewable energy and project development as well as strategic partnerships. He has had the opportunity to steer several major transactions—complex legal operations, cross-border transactions, reorganizations, and investments—in Canada and at an international level on behalf of Canadian, American, and European clients and international corporations and institutional clients in the manufacturing, transportation, pharmaceutical, financial, and renewable energy sectors. Christian Dumoulin is a partner in the firm’s Business Law Group. He served as Managing Partner of the Sherbrooke office from 2015 to 2023 and sat on the firm’s Board of Directors from 2015 to 2017, and again in 2024. He specializes in mergers and acquisitions, commercial law and real estate law, and acts as a business and strategic advisor to clients of all sizes. Recognized for his rigour and practical approach, he supports clients in complex transactions (reorganizations, financings, sales and acquisitions, shareholder disputes). He has also been advising on infrastructure projects for more than fifteen years, including public-private partnerships, as well as on all aspects of commercial real estate law. Nicolas Gagnon focuses his practice on construction law and suretyship. He counsels contractors, public and private sector clients, professional services firms as well as surety companies at every stage of construction projects. He advises clients on the public bidding and procurement processes and participates in the negotiation and drafting of contractual documents involving various project delivery methods, such as public-private partnership projects and design, construction, financing and maintenance contracts. In addition to advising various construction industry stakeholders on construction management and any claims that may arise, he also assists them with dispute resolution processes. Édith Jacques is a partner in the Business Law Group in Montréal. She specializes in mergers and acquisitions and commercial and international law. Édith acts as strategic business advisor for medium to large private companies. Marc-André Landry is a member of the Litigation and Conflict Resolution group and focuses his practice on commercial litigation. He frequently assists his clients in resolving their disputes through negotiation, mediation or arbitration, or before the various courts of law. Over the years, he has represented businesses in many sectors, including construction, real estate, renewable energy, conventional energy, new technologies, financial services and pharmaceuticals. Ouassim Tadlaoui is a partner in the firm’s Litigation and Dispute Resolution Group and focuses his practice on banking litigation, restructuring, bankruptcy and insolvency, as well as construction surety. He represents chartered banks and other financial institutions and alternative lenders as creditors, as well as certain debtors, in bankruptcy and restructuring proceedings. He also represents and advises surety companies, as well as national and international businesses, in insolvency, bankruptcy and restructuring matters in the construction industry. André Vautour practises corporate law and commercial law, and is specifically interested in corporate governance, strategic alliances, joint ventures, investment funds, and mergers and acquisitions of private companies. He also practises technology law (drafting technology development and transfer agreements, licensing agreements, distribution agreements, outsourcing agreements, and e-commerce agreements). About Lavery Lavery is the leading independent law firm in Quebec. Its more than 200 professionals, based in Montréal, Québec City, Sherbrooke and Trois-Rivières, work every day to offer a full range of legal services to organizations doing business in Quebec. Recognized by the most prestigious legal directories, Lavery professionals are at the heart of what is happening in the business world and are actively involved in their communities. The firm’s expertise is frequently sought after by numerous national and international partners to provide support in cases under Quebec jurisdiction.

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July 8, 2026

Generous Federal Investment Tax Credits for Clean Energy Projects

In 2021, the federal government introduced a series of refundable investment tax credits (the “ITCs”) to accelerate the transition to a low-carbon economy, stimulate economic growth, and support innovation. The Spring Economic Update 2026 confirms the growing importance of these measures. In particular, it announces that the Canada Revenue Agency (the “CRA”) will give increased priority to requests for advance rulings regarding eligible clean energy projects. In this regard, the CRA plans to increase its capacity to process these applications by more than 4.5 times by July 2026. In this context, two measures are of particular note: the Clean Technology ITC and the Clean Electricity ITC. 1. The Clean Technology ITC The Clean Technology ITC generally applies to certain capital investments in equipment and systems that contribute to the production of clean energy, the improvement of energy efficiency, and the reduction of greenhouse gas emissions, provided that such assets are acquired and used in Canada in accordance with the applicable criteria. This refundable credit can reach up to 30% of the capital cost of eligible property. It thus serves as a significant financial lever, helping to strengthen liquidity and improve project profitability, particularly during the early years. In practice, the analysis required to apply for this credit focuses primarily on the following elements: the entity’s eligibility (including its status as a taxable Canadian corporation); the property’s qualification (eligible category, function, and use); the timeline (dates of acquisition, installation, and commissioning); the impact of labour requirements, which may influence the applicable rate; interaction with other tax credits. The application period covers property acquired and that becomes available for use between March 28, 2023, and December 31, 2034. 2. The Clean Electricity ITC The Clean Electricity ITC is another measure that is gaining importance. It is of particular interest in structures where the investor (or certain investors) is tax-exempt or belongs to categories of entities for which several clean economy ITCs have historically been less accessible. Indeed, this credit is designed to be accessible to a broader range of entities, including notably (according to the proposed definitions) certain eligible trusts, designated provincial or territorial Crown corporations, corporations principally owned by municipalities, as well as entities affiliated with Aboriginal governments. At this stage, the government has published legislative proposals accompanied by explanatory notes, and the CRA has recently consolidated the relevant information on this subject on its website. Notably, it appears that: the credit would provide a base rate of 15% of the capital cost of eligible clean electricity-related property; eligibility would apply to property used primarily to generate, store, or transmit electricity, subject to technical and environmental criteria; the rate could be reduced in the event of non-compliance with certain labour requirements; the proposed application period would cover investments made from April 2024 and that becomes available for use on or before December 31, 2034. 3. Structuring: Corporation or Limited Partnership Beyond the technical eligibility of the property, the legal structure chosen for a project will have a decisive impact on the ability to claim ITCs and pass on their economic value to investors. In some cases, a taxable corporation is simpler to administer and more easily meets the eligibility criteria. Conversely, a limited partnership (“LP”), while useful for certain financing objectives, presents several disadvantages in the context of ITCs: 3.1 Constraints Related to Investors’ Tax Status Certain tax credits—particularly the Clean Technology ITC, often considered one of the most advantageous—are naturally better suited for taxable investors. When an LP has non-taxable members, converting the tax benefit into economic value may be less optimal, depending on how the credit is allocated and used. 3.2 Allocation of Credits and Limits for Limited Partners The rules governing credits within a partnership generally require that the allocation to each partner be reasonable, taking into account, in particular, their capital investment and contribution. Furthermore, for a limited partner, the share of the credit may be limited by “at-risk” rules, which cap certain tax benefits based on actual economic exposure. In practice, this can reduce the amount of credit available and limit allocation flexibility. 3.3 Increased Complexity of Monitoring and Compliance An LP generally entails heavier administrative obligations: calculating at-risk amounts, tracking allocations, documenting contributions and distributions, and ensuring consistency between the partnership agreement, financing agreements, and tax positions. This complexity can become a significant issue in the event of a tax audit. Conclusion Federal ITCs represent a major financial incentive for clean energy projects. However, their application depends on technical, tax, and structuring criteria that must be rigorously analysed and documented. Furthermore, the legislative framework governing these credits is constantly evolving (implementing regulations, administrative guidelines, and technical requirements), making a case-by-case analysis essential to confirm eligibility and optimize a project’s structure. We invite you to contact our tax team. We would be happy to assist you in successfully bringing your project to completion. Key Takeaways A Major Administrative Acceleration by July 2026 The CRA is making clean energy a priority: its capacity to process advance tax ruling requests will increase by more than 4.5 times by July 2026. For proponents, now is the time to act to secure early tax certainty. Two Powerful Financial Levers with Distinct Criteria Clean Technology: A major refundable credit of up to 30% of capital costs, primarily targeting taxable Canadian corporations. Clean Electricity: A refundable credit of up to 15% of capital costs structured to include entities that were historically restricted, such as Crown corporations, municipalities, and Indigenous organizations. Legal Structuring Can Make or Break Your ITCs Choosing the right legal vehicle is just as critical as technical asset eligibility. While popular for financing, LPs introduce significant complexity due to "at-risk" rules, the involvement of non-taxable partners, and a heavy compliance burden during tax audits.

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July 2, 2026

Bill 10: Significant amendments to the Consumer Protection Act and heightened risk for merchants

The Act to protect consumers against abusive practices in ticket reselling and online subscription renewal (“Law 10,” formerly Bill 10, “Bill 10”) was adopted on June 11, 2026, and assented to on June 12, 2026. Law 10 is part of the legislature’s efforts to strengthen Quebec’s consumer protection regime. It will come into force on September 12, 2026. However, certain provisions took effect as soon as June 12, 2026, in particular section 10, which provides for the addition of new section 272.1 to the Consumer Protection Act (“CPA”). Some measures in Law 10 are aimed at commercial transparency and making the consumer experience more straightforward. Others, such as the introduction of the new section 272.1 of the CPA, are likely to substantially reconfigure consumer law in Quebec. The Parliamentary Committee significantly amended Bill 10 during its detailed review on May 7, 2026. The most consequential amendment was making the new section 272.1 of the CPA “declaratory,” overriding the Court of Appeal’s interpretation in Union des consommateurs c. Air Canada, 2025 QCCA 480,1 currently under appeal before the Supreme Court of Canada. Ticket reselling: stricter rules focused on disclosure Law 10 introduces a structured regime for ticket resale platforms without prohibiting the business model. The focus is on the quality of information provided to consumers. These requirements will take effect on September 12, 2026. The new provisions impose a transparency requirement from the moment consumers access a website and throughout the entire transaction process. They must be informed that they are using a resale platform—and not dealing directly with the original seller—and must be given clear information about the type of ticket, its original price and applicable terms and conditions. With this provision, the legislature is requiring that prices be broken down rather than banning certain fees. The chosen model continues to allow commercial flexibility, provided that the price structure is fully disclosed. Contracts involving sequential performance: tighter regulation of the contract lifecycle Law 10 also introduces new requirements regarding contracts involving sequential performance, in particular online subscriptions. These requirements will take effect on September 12, 2026. The law requires merchants to provide a cancellation mechanism that is not only accessible, but also designed not to create an undue obstacle. In addition, merchants are required to notify consumers before the end of a promotional period or before a new price takes effect. Note: The requirement to provide notice before the end of a free or discounted period does not apply to contracts already in effect as of September 12, 2026. These provisions reflect a desire to tighten control over the performance of contracts, rather than just their formation. For merchants, this means they need to review their digital interfaces and internal processes to ensure ongoing compliance. Beyond technical adjustments, there is also a litigation risk, as these new obligations could serve as grounds for legal action under the CPA, especially when the cancellation mechanism is perceived as difficult or hard to access. Clauses prohibiting consumer reviews Law 10 also prohibits provisions that prevent consumers from publishing or communicating reviews of a good or service, or of the merchant’s conduct. This prohibition took effect on June 12, 2026. It aims to eradicate contractual practices that restrict consumers’ freedom of expression in the digital environment. The decision in Union des consommateurs c. Air Canada, 2025 QCCA 480, and the new section 272.1 of the CPA In its decision rendered on April 22, 2025, in Union des consommateurs c. Air Canada, the Court of Appeal reiterated that a merchant who advertises a partial price and then demands a higher price at the time of payment violates section 224 of the CPA, which requires that the advertised price reflect the total amount payable. The Court acknowledged that a violation such as this may give rise to the remedies provided for in section 272 of the CPA, particularly because of the presumption of fraudulent effect2. It concluded that the practice of breaking down the price is likely to influence consumer behaviour and may, as such, trigger the application of the presumption. However, the Court of Appeals refused to automatically award compensation equal to the difference between the advertised price and the price paid. It stressed that, despite the applicable presumption, the consumer must demonstrate quantifiable harm, in accordance with the general principles of civil law. It thus cast aside the notion that a violation of the CPA must automatically result in restitution. The Court also pointed out that the remedies provided for in section 272 of the CPA are compensatory in nature and must not result in the consumer’s enrichment. It did, however, award $10 million in punitive damages for the conduct in question, deeming it vital to deter its repetition. This decision aligns with the balance set out in Fortin c. Mazda Canada Inc., 2022 QCCA 6353 and other rulings, namely that the seriousness of violations of the CPA must be recognized, but damages must still be proven. It is precisely this balance that the new section 272.1 of the CPA, as amended on May 7, 2026, calls into question. In its final form, section 272.1 of the CPA provides that a merchant who demands payment of a sum in violation of the CPA must refund that sum, regardless of whether a service was provided in return. What is crucial here, however, is the fact that the provision was made declaratory. By doing so, the legislature has reaffirmed what it considers to be the true state of the law, effectively overriding the Court of Appeal’s interpretation in Air Canada. The legislature’s position directly challenges the conclusion that restitution is not automatic but contingent on proof of prejudice. The term “declaratory” paves the way for the immediate—or even retroactive—application of this remedy. For merchants, the implications are considerable. Section 10, which adds section 272.1 to the CPA, came into force immediately on assent. As a result, it will likely—in some cases—nullify or render largely ineffective one of the main defences recognized by the Court of Appeal, namely the argument based on the absence of quantifiable prejudice. The scope of the new section 272.1 of the CPA is even more impactful given that the appeal of the decision in Air Canada is currently pending before the Supreme Court of Canada, with leave having been granted on February 5, 2026. The legislature thus intervened even as the country’s highest court is set to rule on the scope of remedies under the CPA. Conclusion The adoption of Bill 10, and it subsequent assent, marks significant turning point for merchants subject to the Consumer Protection Act. The law will mainly come into force on September 12, 2026, but certain provisions, including the new article 272.1 of the CPA and the prohibition of certain clauses targeting consumer notices, came into force on June 12, 2026. While the new rules governing the resale of tickets and contracts involving sequential performance primarily impose stricter operational requirements, the new section 272.1 of the CPA more directly affects the core of civil liability for merchants. By casting the Court of Appeal’s approach in Air Canada aside, the legislature has established a more automatic restitution regime, which is likely to significantly heighten financial and litigation risks for merchants. The progress of the case before the Supreme Court will need to be closely monitored, as the Court will be called upon to clarify the relationship between this legislative intervention and the principles applicable to remedies under the CPA. In this context, businesses would be well advised to (i) assess the immediate impact of section 272.1 of the CPA on their pricing practices and the risks arising therefrom and (ii) review their business practices, transactional interfaces and contractual documentation by September 12, 2026, to anticipate the entry into force of the other provisions of Law 10. If you have any questions or wish to discuss the impacts of Law 10 on your business, we invite you to contact members of Lavery’s commercial litigation team. Takeaways 1. Entry into force: two dates to remember Law 10 was adopted on June 11, 2026, and assented to on June 12, 2026 Entry into force of most provisions: September 12, 2026, but some measures have already been in effect since June 12, 2026, including the new section 272.1 of the CPA and the prohibition of clauses preventing consumer reviews. 2. New operational obligations to come into force on September 12, 2026 Ticket resale The provisions focus on disclosure, such that the consumer must: Be informed that they are using a resale platform Be given clear information about the ticket, its original price, and any terms and conditions Be given a price breakdown, as fees are not prohibited but must be itemized Contracts involving sequential performance and online subscriptions The cancellation mechanism must genuinely be accessible, without undue obstacles. Notice must be given before the end of a promotional or free period and before a new price takes effect. The notice regarding a free or discounted period coming to an end does not apply to contracts already in effect on September 12, 2026. 3. Heightened risk for merchants with the change in section 272.1 of the CPA opening the door to legal action The new section 272.1 of the CPA provides that a merchant who demands payment of a sum in violation of the CPA must refund that sum, regardless of whether a service was provided in return. Most importantly, the provision is made “declaratory” to depart from the Court of Appeal’s approach in Union des consommateurs c. Air Canada (2025 QCCA 480), significantly limiting defences based on the absence of quantifiable harm and opening the door to immediate and even retroactive application, increasing the financial and legal risk. 2025 QCCA 480 (CanLII) | Union des consommateurs c. Air Canada | CanLII Richard c Time, 2012 SCC 8 2022 QCCA 635 (CanLII) | Fortin c. Mazda Canada inc. | CanLII

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December 2, 2025

AI in the Courtroom: A Call to Order in Specter Aviation

Eight quotes hallucinated by AI cost $5,000 for substantial breach (art. 342 C.C.P.) in the Specter Aviation case.1 While AI can improve access to justice, unverified AI use can lead to sanctions, adding to the risks unrepresented parties face. Quebec courts advocate for openness to AI, but with proper controls: AI is only useful when verified, traceable and supported by official sources. The cost of hallucinations On October 1, 2025, the Superior Court rendered judgment on a contestation to an application for homologation of an arbitral award rendered by the Paris International Arbitration Chamber (PIAC) on December 9, 2021. Under articles 645 and 646 C.C.P., the role of the Court in such a situation is limited to verifying whether one of article 646’s limiting grounds for refusal has been demonstrated. The applicant’s grounds—ultra vires, procedural irregularities, infringement of fundamental rights, public order, abuse of power—were deemed inappropriate and unconvincing. Although the decision is interesting in this respect, it is even more so in another one altogether. In his contestation, the unrepresented defendant relied on all possible support he could get from artificial intelligence. In response, the plaintiffs filed a table listing eight occurrences of non-existent citations, decisions never having been rendered, irrelevant references and inconsistent conclusions. Questioned at the hearing, the defendant did not deny that some references might have been hallucinated.2 In his judgment, Justice Morin turned the issue to principles. On one hand, access to justice requires a level playing field and the orderly and proportionate management of proceedings. On the other, even though unrepresented claimants or plaintiffs are given flexibility, never is forgery allowed: “Fabrication or shams cannot be tolerated to facilitate access to justice.”3 The Court therefore qualified the presentation of fictitious case law or fictitious quotes from authorities, whether intentionally or through simple negligence, as a serious breach that contravenes the solemnity that the act of filing of proceedings carries. It invoked article 342 C.C.P. to order the defendant to pay $5,000, to deter such conduct and protect the integrity of the process.4 Art. 342 C.C.P.: The power to punish substantial breaches Article 342 C.C.P. stems from the reform that was adopted in 2014 and came into force in 2016. Because this provision authorizes the court to impose a fair and reasonable sanction5 for significant breaches in the conduct of proceedings, it can be said to be punitive and dissuasive in nature. This power is distinct from the power granted by articles 51 to 54 C.C.P. which govern abuse of procedure, and an exception to the general regime of fees6 by which extrajudicial fees can be awarded, when warranted.7 A “substantial breach” must not simply be a trivial issue. It must reach a certain degree of seriousness, but it need not involve bad faith. It implies additional time and expense and contravenes the guiding principles of articles 18 to 20 C.C.P. (proportionality, control and cooperation).8 Nearly ten years later, case law illustrates a range of uses: $100,000 for the late filing of applications or amendments resulting in postponements and unnecessary work;9 $91,770.10 for a continuance on the morning of trial for failure to ensure the presence of a key witness;10 $10,000 for repeated delays, tardy amendment of proceedings and non-compliance with case management orders;11 $3,500 for the failure to or delay in disclosing evidence;12 $1,000 for filing an undisclosed statement in the middle of a hearing to take the opposing party by surprise.13 Sanctions and uses of AI in Canada and elsewhere Moreover, although the use of section 342 to sanction unverified use of technological tools appears to be a first in Quebec, a number of Canadian judgments have already imposed penalties for similar issues. In particular, they awarded: $200 in costs against an unrepresented party for having filed pleadings containing partially non-existent quotes to compensate for the time spent to make verifications.14 $100 in Federal Court, at the lawyer’s personal expense, for having quoted non-existent decisions generated by AI, without disclosing its use, further to the Kuehne + Nagel test.15 $1,000 before the Civil Resolution Tribunal of British Columbia to compensate for time needlessly spent dealing with clearly irrelevant, AI-generated arguments and documents in a case opposing two unrepresented parties.16 $500 and expungement of file containing AI-hallucinated authorities for non-compliance with the Federal Court’s AI policy.17 The $5,000 sanction ordered in this case was a deterrent; however, it is distinct from these other essentially compensatory amounts while in line an international trend, which can be observed in the following cases: On June 22, 2023, in the United States (S.D.N.Y.), a Rule 11 penalty of USD 5,000 was imposed along with non-pecuniary measures (notice to client and judges falsely cited), in Mata v. Avianca, Inc.18 . On September 23, 2025, in Italy, a sum of €2,000 was awarded ex art. 96, co. 3 c.p.c. (€1,000 to the opposing party and €1,000 to Cassa delle ammende), plus €5,391 in legal costs (spese di lite), by the Tribunale di Latina.19 On August 15, 2025, in Australia, personal costs of AUD 8,371.30 were ordered against the plaintiff’s lawyer, with referral to the Legal Practice Board of Western Australia, following fictitious citations generated by AI (Claude, Copilot).20 On October 22, 2025, in the United States (E.D. Oklahoma), monetary penalties totaling $6,000 were imposed on attorneys personally. They were also required to repay fees of $23,495.90, and some of their pleadings were stricken from the record with the requirement to refile verified pleadings.21 In addition to monetary penalties, Quebec courts have already identified a number of problematic situations related to the use of AI, such as: The Régie du bâtiment du Québec had to examine a 191-page brief containing numerous non-existent references. The author finally admitted to having used ChatGPT to formulate them. The commissioner underscored the resulting work overload and the need to regulate the use of AI before the RBQ.22 In a commercial case, the Court suspected hallucinated references and dismissed them, ruling on the credible evidence.23 At the Administrative Housing Tribunal (AHT), a lessor who had read translations of the C.C.Q. obtained through ChatGPT—which distorted its meaning—saw his application dismissed. However, his conduct was not found to be abusive, as his good faith was recognized.24 Two related AHT decisions noted that an agreement (a “Lease Transfer and Co-Tenancy Agreement”) had been drafted with the help of ChatGPT, but the AHT simply analyzed them as it usually does (text, context, C.C.Q. rules) and concluded that there had been a deferred lease assignment, without drawing any particular consequence from the use of AI.25 At the Court of Québec, a litigant attributed a self-incriminating formulation in his application to ChatGPT; the Court dismissed his explanation.26 In an application to have evidence set aside, the applicant claimed that he thought he was obliged to respond to investigators after having done research on Google and ChatGPT regarding his duty to cooperate with the employer just prior to the interview. The Court noted that he had been clearly informed of his right to remain silent and that he could leave or consult a lawyer. It therefore concluded that there was no real constraint and allowed the statement.27 Openness to AI with proper controls, certainly, but with a caveat These are just a few of a long and growing list of cases across Canada and the world around. Despite this trend, the decision in Specter Aviation avoids stigmatizing AI. The Court rather insisted on remaining open to AI, pointing out that it must be used with proper controls, reminding us that a technology that facilitates access to justice must be welcomed and given proper controls, not proscribed.28 Openness to AI comes with clear requirements, such as those set out in the opinion published by the Superior Court on October 24, 2023. In the notice, the Superior Court called for caution, the use of reliable sources (court websites, recognized commercial publishers, established public services) and “meaningful human control” of generated content.29 The practice guides issued by various courts all point in the same direction: We should govern the use of AI without banning it. The Federal Court requires a declaration when a filed document contains AI-generated content and insists on “human in the loop” verification.30 The Court of Appeal of Quebec,31 the Court of Québec32 and the municipal courts33 have issued similar warnings: need for caution, authoritative sources, hyperlinks to recognized databases and full responsibility of the author. Nowhere is AI banned—all make its use conditional on verification and traceability. Some clues suggest that the judiciary itself is using artificial intelligence. In the Small Claims Division, on at least two occasions, a judge attached English translations generated by ChatGPT as a courtesy, specifying that they had no legal value and that the French version prevailed.34 In family law, a Superior Court decision in a family matter clearly used a Statistics Canada link identified by an AI tool (the URL includes “utm_source=chatgpt.com”), but the reasoning remains rooted in primary sources and case law: The AI was used as a search tool, not to provide a legal basis.35 A decision handed down on September 3, 2025, by the Commission d’accès à l’information is a particularly good illustration of openness with proper controls. In Breton c. MSSS,36 the court allowed exhibits containing content generated by Gemini and Copilot, because they were corroborated by relevant, primary sources that had already been filed (Journal des débats, newspaper excerpts, official websites). Despite art. 2857 C.C.Q. and the flexibility of administrative law, the Court reiterated that AI content is admissible if, and only if, it is verified, traceable and supported by official sources. AI that aims to please us and that we want to believe Two constants emerge from the sanctioned cases: excessive confidence in the AI’s reliability and underestimated risk of hallucination. In the United States, in Mata v. Avianca,37 the lawyers claimed that they believed that the tool could not invent cases. In Canada, in Hussein v. Canada,38 the plaintiff’s lawyer claims to have relied on an AI service in good faith, without fully realizing that it was necessary to check references. In Australia, in JNE24 v. Minister for Immigration and Citizenship,39 the court reported an over-reliance on tools (Claude, Copilot) and insufficient verification. In Quebec, the AHT found that a lessor had been misled by the use of artificial intelligence,40 while at the Administrative Labour Tribunal (ALT), ChatGPT-generated answers deemed to be approximately 92% accurate were used.41 These examples describe a generalized trust bias that is particularly risky for those who represent themselves: AI is perceived as a reliable way to gain speed, but in reality, it requires greater human control. Large language models are optimized to produce plausible and engaging responses; but, without proper controls, they tend to confirm user expectations rather than pointing out their own limitations.42 A notice published last April by OpenAI concerning an update that made its model “overly supportive” testifies to the underlying complexity of striking the right balance between engagement and preciseness.43 This makes it easier to understand how a quarrelsome litigant may have persuaded himself, based on an AI response, that he was entitled to personally sue a judge for judicial acts perceived as biased.44 Models trained to “please” or to keep users engaged can generate responses that, in the absence of legal contextualization, amplify erroneous or imprudent interpretations. Although AI service providers generally seek to limit their liability for the consequences of incorrect answers, the scope of such clauses is necessarily limited. When ChatGPT, Claude and Gemini apply legal principles to facts reported by a user, doesn’t the entity offering the service expose itself to the rules of public order that make such acts the exclusive prerogative of lawyers, which cannot be waived by a simple disclaimer? In Standing Buffalo Dakota First Nation v. Maurice Law, the Saskatchewan Court of Appeal reiterated that the prohibition on the practise of law applies to any “person" (including a corporation) and expressly contemplated that technological mediation would not change the analysis of what prohibited acts are.45 In Quebec, this principle is enshrined in section 128 of the Act respecting the Barreau du Québec and the Professional Code: general legal information is permitted, but individualized advice can only be provided by a lawyer. While some aberrant situations have involved lawyers, unrepresented claimants or plaintiffs appear to be the most exposed to the effects of AI. Should we focus on educating users first, or restrict certain uses? The tension between access to justice and protecting the public is quite obvious. Conclusion The Specter Aviation ruling confirms that artificial intelligence has its place in court, provided that rigorous controls are applied to it, and that it is useful when verified, but sanctionable when not. While AI offers unprecedented possibilities in terms of access to justice, combining it with public protection remains a major challenge. Despite this clear signal, containing over-reliance on tools designed to be engaging and supportive, and that claim to have an answer to everything, will remain a challenge for years to come. Specter Aviation Limited c. Laprade, 2025 QCCS 3521, online: https://canlii.ca/t/kfp2c Id., paras. [35], [53] Id. para. [43] Id. para. [60] Chicoine c. Vessia, 2023 QCCA 582, https://canlii.ca/t/jx19q, para. [20]; Gagnon c. Audi Canada inc., 2018 QCCS 3128, https://canlii.ca/t/ht3cb, paras. [43]–[48]; Layla Jet Ltd. c. Acass Canada Ltd., 2020 QCCS 667, https://canlii.ca/t/j5nt8, paras. [19]–[26]. Code of Civil Procedure, CQLR, c. C-25.01, arts. 339–341. Chicoine c. Vessia, supra. note 5, paras. [20]–[21]; Constellation Brands US Operations c. Société de vin internationale ltée, 2019 QCCS 3610, https://canlii.ca/t/j251v, paras. [47]–[52]; Webb Electronics Inc. c. RRF Industries Inc., 2023 QCCS 3716, https://canlii.ca/t/k0fq8, paras. [39]–[48]. 9401-0428 Québec inc. c. 9414-8442 Québec inc., 2025 QCCA 1030, https://canlii.ca/t/kdz4h, paras. [82]–[87]; Biron c. 150 Marchand Holdings inc., 2020 QCCA 1537, https://canlii.ca/t/jbnj2, para. [100]; Groupe manufacturier d’ascenseurs Global Tardif inc. c. Société de transport de Montréal, 2023 QCCS 1403, https://canlii.ca/t/jx042, para. [26]. Groupe manufacturier d’ascenseurs Global Tardif inc. c. Société de transport de Montréal, supra. note 8, paras. [58]–[61] ($100,000 to Global Tardif, $60,000 to Intact Assurance, $40,000 to Fujitec, all as legal costs awarded under art. 342 C.C.P.); see also $20,000 for an application for an amendment made on the 6th day of a trial, forcing a continuance: Paradis c. Dupras Ledoux inc., 2024 QCCS 3266, https://canlii.ca/t/k6q26, paras. [154]–[171]; Webb Electronics Inc. c. RRF Industries Inc., supra. note 7. Layla Jet Ltd. c. Acass Canada Ltd, supra note 5, paras. [23]–[28]. Électro-peintres du Québec inc. c. 2744-3563 Québec inc., 2023 QCCS 1819, https://canlii.ca/t/jxfn0, paras. [18]–[22], [35]–[38]; see also Constant c. Larouche, 2020 QCCS 2963, https://canlii.ca/t/j9rwt, paras. [37]–[40] (repeated delays in adhering to undertakings despite an order, sanction: $5,000). Constellation Brands US Operations c. Société de vin internationale ltée, supra. note 7, paras. [39]–[43], [47]–[52]; see also AE Services et technologies inc. c. Foraction inc. (Ville de Sainte-Catherine), 2024 QCCS 242, https://canlii.ca/t/k2jvm (repeated delays in transmitting promised documentation and breach of an undertaking before the court; compensation of $3,000). Gagnon c. SkiBromont.com, 2024 QCCS 3246, https://canlii.ca/t/k6mzz, paras. [29]–[37], [41]. J.R.V. v. N.L.V., 2025 BCSC 1137, https://canlii.ca/t/kcsnc, paras. [51]–[55]. Hussein v. Canada (IRCC), 2025 FC 1138, https://canlii.ca/t/kctz0, paras. [15]–[17], applying Kuehne + Nagel Inc. v. Harman Inc, 2021 FC 26, https://canlii.ca/t/jd4j6, paras. [52]–[55] (reiterating the principles of Young v. Young and the two-step test: (1) conduct causing costs to be incurred; (2) discretionary decision to impose costs personally). AQ v. BW, 2025 BCCRT 907, https://canlii.ca/t/kd08x, paras. [15]–[16], [38]–[40]. Lloyd's Register Canada Ltd. v. Choi, 2025 FC 1233, https://canlii.ca/t/kd4w2 Mata v. Avianca, Inc, No. 22-cv-1461 (PKC) (S.D.N.Y. June 22, 2023) (sanctions order), online: Justia https://law.justia.com/cases/federal/district-courts/new-york/nysdce/1:2022cv01461/575368/54/ Tribunale di Latina (giud. Valentina Avarello), sentenza 23 septembre 2025, Atto redatto con intelligenza artificiale a stampone, con scarsa qualità e mancanza di pertinenza: sì alla condanna ex art. 96 c.p.c., La Nuova Procedura Civile (september 29, 2025), online: https://www.lanuovaproceduracivile.com/atto-redatto-con-intelligenza-artificiale-a-stampone-con-scarsa-qualita-e-mancanza-di-pertinenza-si-alla-condanna-ex-art-96-c-p-c-dice-tribunale-di-latina/ Australia, Federal Circuit and Family Court of Australia (Division 2), JNE24 v. Minister for Immigration and Citizenship, [2025] FedCFamC2G 1314 (August 15, 2025), Gerrard J, online: AustLII https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FedCFamC2G/2025/1314.html United States, District Court for the Eastern District of Oklahoma, Mattox v. Product Innovations Research, LLC d/b/a Sunevolutions; Cosway Company, Inc.; and John Does 1–3, No. 6:24-cv-235-JAR, Order (October 22, 2025), online: Eastern District of Oklahoma https://websitedc.s3.amazonaws.com/documents/Mattox_v._Product_Innovations_Research_USA_22_October_2025.pdf Régie du bâtiment du Québec c. 9308-2469 Québec inc. (Éco résidentiel), 2025 QCRBQ 86, online: https://canlii.ca/t/kfdfg, paras. [159]–[167]. Blinds to Go Inc. c. Blachley, 2025 QCCS 3190, online: https://canlii.ca/t/kf963 para. [57] and n. 22. Lozano González c. Roberge, 2025 QCTAL 15786, online: https://canlii.ca/t/kc2w9 paras. [7], [17]–[19]. Marna c. BKS Properties Ltd, 2025 QCTAL 34103, online: https://canlii.ca/t/kfq8n paras. [18], [21]–[25]; Campbell c. Marna, 2025 QCTAL 34105, online: https://canlii.ca/t/kfq81 paras. [18], [21]–[25]. Morrissette c. R., 2023 QCCQ 12018, online: https://canlii.ca/t/k3x5j para. [43]. Léonard c. Agence du revenu du Québec, 2025 QCCQ 2599, online: https://canlii.ca/t/kcxsb paras. [58]–[64]. Specter Aviation Limited c. Laprade, supra. note 1, para. [46]. Superior Court of Quebec, “Notice to Profession and Public – Integrity of Court Submissions When Using Large Language Models,” October 24, 2023, online: https://coursuperieureduquebec.ca/fileadmin/cour-superieure/Districts_judiciaires/Division_Montreal/Communiques/Avis_a_la_Communite_juridique-Utilisation_intelligence_artificielle_EN_October_24_2023.pdf Federal Court, “Notice to the Parties and the Profession – The Use of Artificial Intelligence in Court Proceedings,” December 20, 2023, online: https://www.fct-cf.ca/Content/assets/pdf/base/2023-12-20-notice-use-of-ai-in-court-proceedings.pdf; Federal Court, Update – The Use of Artificial Intelligence in Court Proceedings, May 7, 2024, online: https://www.fct-cf.ca/Content/assets/pdf/base/FC-Updated-AI-Notice-EN.pdf Court of Appeal of Quebec, “Notice Respecting the Use of Artificial Intelligence Before the Court of Appeal”, August 8, 2024, online: https://courdappelduquebec.ca/fileadmin/dossiers_civils/avis_et_formulaires/eng/avis_utilisation_intelligence_articielle_ENG.pdf Court of Québec, “Notice to the legal community and the public – Maintaining the integrity of submissions before the Court when using large language models,” January 26, 2024, online: https://courduquebec.ca/fileadmin/cour-du-quebec/centre-de-documentation/toutes-les-chambres/en/NoticeIntegriteObservationsCQ_LLM_en.pdf Cours municipales du Québec, Avis à la profession et au public – Maintenir l’intégrité des observations à la Cour lors de l’utilisation de grands modèles de langage, December 18, 2023, online: https://coursmunicipales.ca/fileadmin/cours_municipales_du_quebec/pdf/Document_d_information/CoursMun_AvisIntegriteObservations.pdf Bricault c. Rize Bikes Inc., 2024 QCCQ 609, online: https://canlii.ca/t/k3lcd n. 1; Brett c. 9187-7654 Québec inc, 2023 QCCQ 8520, online : https://canlii.ca/t/k1dpr, n. 1. Droit de la famille – 251297, 2025 QCCS 3187, online: https://canlii.ca/t/kf96f paras. [138]–[141]. Breton c. Ministère de la Santé et des Services sociaux, 2025 QCCAI 280, online: https://canlii.ca/t/kftlz, paras. [24]–[26], [31]. Mata v. Avianca, Inc, supra note 18. Hussein v. Canada (IRCC), 2025 FC 1138, supra note 15, paras. [15]–[17]. JNE24 v. Minister for Immigration and Citizenship, supra note 20. Lozano González c. Roberge, supra note 24, para. [17]. Pâtisseries Jessica inc. et Chen, 2024 QCTAT 1519, online: https://canlii.ca/t/k4f96, paras. [34]–[36]. See Emilio Ferrara, “Should ChatGPT be Biased? Challenges and Risks of Bias in Large Language Models” (2023), SSRN 4627814, online: https://doi.org/10.2139/ssrn.4627814; Isabel O. Gallegos et al, “Bias and Fairness in Large Language Models: A Survey” (2024) 50:3 Computational Linguistics 1097, doi: 10.1162/coli_a_00524. See OpenAI, “Sycophancy in GPT-4o: what happened and what we're doing about it,” April 29, 2025, online: https://openai.com/research/sycophancy-in-gpt-4o; see also “Expanding on what we missed with sycophancy,” May 2, 2025, online: https://openai.com/index/expanding-on-sycophancy/ [44]Verreault c. Gagnon, 2023 QCCS 4922, online: https://canlii.ca/t/k243v, paras. [16], [28]. Standing Buffalo Dakota First Nation v. Maurice Law Barristers and Solicitors (Ron S. Maurice Professional Corporation), 2024 SKCA 14, online: https://canlii.ca/t/k2wn9 paras. [37]–[40], [88]–[103].

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October 22, 2025

A judgment rendered by a civil court in Quebec may be valid for life

Executing a judgment in Quebec In Quebec, a bailiff can proceed with the forced execution1 of a judgment rendered by a civil court, such as the Court of Québec or the Superior Court,2 as soon as it becomes final,3 in accordance with article 656 of the Code of Civil Procedure (C.C.P.). Execution process The execution process begins when the creditor (the party having won the case) sends their instructions to a bailiff, who transcribes them into a notice of execution. The notice is then filed in the Court record and can be consulted free of charge at the court office or on SOQUIJ, for a fee. Prescription and renewal of debt A debtor who has been ordered by judgment to pay a sum of money should know that the debt can be recovered for 10 years, and that if the creditor executes the judgment in those 10 years but the debt goes unpaid, a new 10-year prescription period will start to run and the debt will remain owing. Article 2924 of the Civil Code of Québec (C.C.Q.) states that “[a] right resulting from a judgment is prescribed by [is extinguished after] 10 years if it is not exercised.” A creditor who has been unable to execute their judgment within the 10-year prescription period has the possibility of interrupting prescription by filing a notice of execution and making sure to serve it on the debtor, in accordance with article 2892 para. 2 C.C.Q. Clearly, a well-informed creditor will be able to indefinitely renew the prescription period to execute their judgment, until the debt has been paid in full. To constitute a valid interruption, the notice of execution must absolutely be filed with the court and be served on the debtor, but the subsequent seizure need not be conclusive. Jurisprudential confirmation Mohawk Council of Kanesatake v. Sylvestre This method of interrupting the extinctive prescription of rights resulting from a judgment has just been confirmed in Mohawk Council of Kanesatake v. Sylvestre, 2025 SCC 30: [62] ... The filing and service of the notice, itself part of the judicial application for seizure, interrupted prescription in 2016 pursuant to art. 2892 C.C.Q. Here is an excerpt of the Honourable Court’s summary: ... [F]iling and serving a notice of execution counts as a judicial application that interrupts the 10-year prescription period... It did not matter that the bailiff later found nothing to be taken and suspended the seizure. It also did not matter that the bailiff did not notify the debtor that the seizure had been suspended. ... [T]he 10-year period exists to ensure people act on time and to bring stability to debtor-creditor relations, but it should not punish creditors who take the right steps before the deadline. With this decision, the Court gave clarity and certainty to both creditors and debtors about how judgment debts can be enforced and what types of events can interrupt prescription. Additional points Prescription is interrupted when a notice of execution is filed with the Court and served on a debtor by bailiff. The notice of execution may include several seizure options, and the bailiff may attempt more than one, depending on the case. An unsuccessful seizure does not result in the “judicial application” being dismissed. If this is the case, the notice of execution remains valid and has the effect of interrupting prescription, such that a new 10-year period starts to run. There is no requirement for the bailiff to draw up minutes of a nulla bona if no property is seized. The bailiff can prepare minutes to certify that no property was seized, but there is no such requirement under the C.C.P., and the debtor suffers no prejudice if this is not done. The 10-year prescription period is not interrupted if the debtor opposes the execution and the Court allows such opposition. Conclusion This ruling by the Supreme Court of Canada confirms that the filling and service of a notice of execution maintains the validity of a judgment for a renewable period of 10 years. The term “execution” means that a party having succeeded in a judgment may choose one or more ways to compel the other party (the debtor) to pay what is owed to them by seizing immovable property, movable property, bank accounts, wages, and so on. Article 656 para. 2 C.C.P. states that “[e]xecution may be forced if the debtor refuses to comply voluntarily and the judgment has become final.” Article 566 C.C.P., which deals with the recovery of small claims, states that a “judgment creditor may themselves draw up the notice of execution if the only execution measure is seizure of the debtor’s income in the hands of a third person”, and section 13.1 of the Tax Administration Act states, among other things, that the Agence du revenu du Québec may prepare and file a notice of execution and then seize a sum of money or income in the hands of a third person, but that it must hire a bailiff in other cases. The term “final” in this article means that the case is over, that the judgment can no longer be appealed and that the creditor can force a debtor to comply with the judgment’s orders.

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