Dominion Construction Co. v. Good & Co.

Dominion Construction Co. v. Good & Co.

Where a contract makes completion and payment conditional on the satisfaction and acceptance of a named chief engineer who, in fact, is interested in or effectively represents the other contracting party and thus is not impartial, the contractor is not bound to obtain that person's certificate as a condition precedent and may recover notwithstanding the absence of such certificate.

Citation
(1899) 30 SCR 114
Parties
Appellant/defendant: Dominion Construction Company; Respondent/plaintiff: Good & Co.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
29 November 1899
Procedural Posture
Contract Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs; original judgment as varied by the Court of Appeal to stand; action against Wingate dismissed without costs; appellants may elect an inquiry into mechanics' liens or other charges.
Legal Topics
Condition Precedent, Certificate of Engineer, Conflict of Interest, Finality of Arbiter Decision, Mechanics' Liens
Source Language
English
Contract Construction Railway Condition Precedent Certificate of Engineer Conflict of Interest Finality of Arbiter Decision Mechanics' Liens

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Parties

Dominion Construction Company

Appellant/defendant

Good & Co.

Respondent/plaintiff

Procedural Posture

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

Legal Issues

  1. 1 Whether a contractor is bound by a contract provision making work completion subject to the satisfaction and acceptance of a named chief engineer who proves to be interested or effectively the engineer of the other contracting party
  2. 2 Whether a final engineer's certificate is a condition precedent to payment where the engineer is not impartial
  3. 3 Whether releases and mechanics' liens are necessary when no final certificate will be or can be obtained

Ratio Decidendi

Where a contract makes completion and payment conditional on the satisfaction and acceptance of a named chief engineer who, in fact, is interested in or effectively represents the other contracting party and thus is not impartial, the contractor is not bound to obtain that person's certificate as a condition precedent and may recover notwithstanding the absence of such certificate.

Court Disposition

Appeal dismissed with costs; original judgment as varied by the Court of Appeal to stand; action against Wingate dismissed without costs; appellants may elect an inquiry into mechanics' liens or other charges.

Orders

  • Appeal dismissed with costs.
  • Original judgment as varied by the Court of Appeal is to stand.