CCH Canadian Ltd. v. Mollenhauer

CCH Canadian Ltd. v. Mollenhauer

Because the brick was supplied in accordance with the contract specifications and under the architect's supervision and the owner did not rely on the contractor's special skill, the contractor was not liable for the brick's unsuitability; the supplier could not be held to a contract by the owner because there was no consideration from the owner to the supplier, and negligence was not available because it was not pleaded.

Citation
[1976] 1 SCR 49
Parties
Appellant (defendant and Plaintiff by Counterclaim): CCH Canadian Limited; Respondent (plaintiff): Mollenhauer Contracting Company Limited; Respondent (defendant by Counterclaim and Third Party Respondent): United Ceramics Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 December 1974
Procedural Posture
Contract Appeal / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs.
Legal Topics
Building Contracts, Liability for Defective Materials, Supplier Liability Without Privity, Consideration, Pleadings and Negligence
Source Language
English
Contract Construction Tort (not Pleaded) Building Contracts Liability for Defective Materials Supplier Liability Without Privity Consideration Pleadings and Negligence

Case Brief

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Parties

CCH Canadian Limited

Appellant (defendant and Plaintiff by Counterclaim)

Mollenhauer Contracting Company Limited

Respondent (plaintiff)

United Ceramics Limited

Respondent (defendant by Counterclaim and Third Party Respondent)

Procedural Posture

Contract Appeal / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether a contractor is liable for defective or unsuitable materials specified in the contract when those materials were supplied in accordance with specifications and under the owner's supervision
  2. 2 Whether the supplier of materials is liable to the owner in the absence of a contractual relationship or consideration
  3. 3 Whether a negligence cause of action could be advanced where it was not pleaded in the counterclaim

Ratio Decidendi

Because the brick was supplied in accordance with the contract specifications and under the architect's supervision and the owner did not rely on the contractor's special skill, the contractor was not liable for the brick's unsuitability; the supplier could not be held to a contract by the owner because there was no consideration from the owner to the supplier, and negligence was not available because it was not pleaded.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.
  • Judgment affirmed: Mollenhauer entitled to recover $30,857.17.