General Securities Ltd. v. Don Ingram Ltd.

General Securities Ltd. v. Don Ingram Ltd.

Where a financier agreed to advance money to fund specific purchases and had full knowledge of the borrower’s circumstances, losses that were natural and probable and therefore within the parties' contemplation (loss of profits on the cars, loss of franchise and consequent business loss, and loss on realization of assets) were not too remote and were recoverable; accordingly the trial assessment of $8,000 was upheld.

Citation
[1940] SCR 670
Parties
Appellant (defendant): General Securities Limited; Respondent (plaintiff): Don Ingram Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
29 June 1940
Procedural Posture
Contract — Breach of Financing Agreement / On Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia (final Appeal on Damages)
Outcome
Appeal dismissed with costs; judgment for plaintiff affirmed
Legal Topics
Breach of Contract, Measure of Damages, Remoteness/foreseeability (hadley V. Baxendale), Contract to Lend/advance Money, Franchise Termination Consequences
Source Language
English
Contract Commercial Law Tort of Economic Loss (contractual) Breach of Contract Measure of Damages Remoteness/foreseeability (hadley V. Baxendale) Contract to Lend/advance Money Franchise Termination Consequences

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Parties

General Securities Limited

Appellant (defendant)

Don Ingram Limited

Respondent (plaintiff)

Procedural Posture

Contract — Breach of Financing Agreement / On Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia (final Appeal on Damages)

Legal Issues

  1. 1 Whether breach of an agreement to finance purchases can attract substantial damages beyond nominal damages or the cost of obtaining funds elsewhere
  2. 2 Whether losses from loss of franchise, destruction of business and loss on realization of assets were too remote or within the parties' contemplation
  3. 3 Proper measure of damages for breach of a contract to lend/advance money under the facts

Ratio Decidendi

Where a financier agreed to advance money to fund specific purchases and had full knowledge of the borrower’s circumstances, losses that were natural and probable and therefore within the parties' contemplation (loss of profits on the cars, loss of franchise and consequent business loss, and loss on realization of assets) were not too remote and were recoverable; accordingly the trial assessment of $8,000 was upheld.

Court Disposition

Appeal dismissed with costs; judgment for plaintiff affirmed

Orders

  • Appeal dismissed with costs
  • Judgment for plaintiff in the sum of $8,000 and costs