Verona Construction Ltd. v. Frank Ross Construction Ltd.

Verona Construction Ltd. v. Frank Ross Construction Ltd.

The plaintiff openly abandoned the subcontract when it refused to continue without renegotiation; the defendant was not obliged to renegotiate or temporize and its taking over of the work did not constitute consent to the abandonment, therefore the defendant was entitled to damages for completion costs and the...

Source-derived case information.

Citation
[1961] SCR 195
Parties
Appellant/plaintiff: Verona Construction Limited; Respondent/defendant: Frank Ross Construction Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 December 1960
Procedural Posture
Contract Appeal / Appeal to Supreme Court of Canada From Court of Queen's Bench, Appeal Side, Quebec; Final Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Breach of Contract, Abandonment, Subcontract, Damages, Acceptance of Abandonment, Remedies
Source Language
english
Contract Breach of Contract Abandonment Subcontract Damages Acceptance of Abandonment Remedies

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Parties

Verona Construction Limited

Appellant/plaintiff

Frank Ross Construction Limited

Respondent/defendant

Procedural Posture

Contract Appeal / Appeal to Supreme Court of Canada From Court of Queen's Bench, Appeal Side, Quebec; Final Judgment on Appeal

Legal Issues

  1. 1 Did the plaintiff abandon the subcontract?
  2. 2 Did the defendant's taking over of the work constitute consent to the alleged abandonment?
  3. 3 Which party is liable for damages resulting from non‑performance?

Ratio Decidendi

The plaintiff openly abandoned the subcontract when it refused to continue without renegotiation; the defendant was not obliged to renegotiate or temporize and its taking over of the work did not constitute consent to the abandonment, therefore the defendant was entitled to damages for completion costs and the appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeals dismissed with costs
  • Respondent awarded damages of 12784.47 CAD