Risk & Business Magazine Lloyd Sadd Insurance Brokers Spring 2016 | Page 27

What’s Happening at
Lloyd Sadd Calgary?

losses that could create unwanted liability in a contract. A limitation
of liability restricts the amount of damages a party is required to
pay if found liable for such damages. Sometimes this also includes a
limit for indemnification.
Indemnification provisions allocate risk and cost between parties. It
is important to examine whether the party assuming the risk is the
party with the most control over that risk. A contract can contain
indemnification provisions in situations beyond your control,
which means you will need to indemnify or make a party whole
even when you did nothing wrong. Indemnification should never
extend beyond your negligence or legal responsibility.

Dispute Resolution
Each contract should identify how potential disputes will be
amicably and fairly resolved. It is in everyone’s best interest to keep
matters out of the courts, as going to court is extremely costly,
stressful and time consuming.
Dispute resolution should start gradually, with parties employees
directly affected trying to resolve an issue before it escalates.
Should that be unsuccessful, a contract may call for managers or
senior executives to step in to assist. Failing that, mediation is
recommended.
Mediation is a relatively inexpensive structured process in which
the parties come together voluntarily, before a third-party nonbiased mediator, to try to resolve the dispute. Whenever possible,
mediation should be attempted before arbitration and litigation, as
it will save time and money and preserve the relationship between
the parties. Some jurisdictions already have dispute resolution
statutes or regulations to aid in reaching amicable resolution
outside of litigation.
The current economic conditions in Alberta create heavy pressure
on businesses to accept adverse conditions in contracts in order to
obtain work and sustain the business through hard times. While
it is “a buyer’s market,” negotiating a fair contract should still be a
priority. Contractual liability can be substantial, and overlooking it
or accepting it can have a huge negative impact on your company’s
bottom line.

T

ime goes by fast
when you are
having fun… It is hard to
believe that our Calgary
office celebrated its fifth
anniversary in March,
2016. We opened our
doors for business on
March 11, 2011, with
five employees and
soon had to move from
our original location
in Sun Life plaza as
we ran out of space.
Here we are, 5 years
later, again searching
for larger office space
as we continue to
grow our firm. We are
pleased to welcome the
most recent additions to our Calgary team: Anthony Cupidio,
Lance Hudgin and Phillip Schuman. We look forward to their
contribution to the continued growth and success of our Calgary
office. I would personally like to thank all of our staff in Calgary,
the Lloyd Sadd team in Edmonton, our clients and our insurers
for their ongoing support and help in building the success of our
practice in Calgary.
It goes without saying that the Calgary marketplace has changed
dramatically over the past two years due in no small part to
the drop in oil prices and resulting economic challenges. That
said, there are still bright spots as clients find opportunitie