Does a common law duty of good faith apply in a long term contract for waste removal in the greater Vancouver region?

This appeal raises the issue of whether a common law duty of good faith performance applies in a long-term contract for waste removal in the greater Vancouver region. More specifically, it bears on how principles of good faith might preclude what one scholar has called the “abuse of contractual discretionary powers” (J. D. McCamus, The Law of Contracts (3rd ed. 2020), at p. 938). In Bhasin v. Hrynew, 2014 SCC 71, [2014] 3 S.C.R. 494, at paras. 47 and 50, Cromwell J. observed that the exercise of contractual discretion is one circumstance in which courts have found a duty of good faith performance exists in a manner consonant with the “organizing principle” from which this and other good faith duties derive: “parties generally must perform their contractual duties honestly and reasonably and not capriciously or arbitrarily” (para. 63, see also McCamus, pp. 931-943). However, Bhasin does not explore the source or content of the specific duty to exercise discretion in good faith, which matters were not at issue in that appeal.