W. A. Bechtel Co. v. Stevenson

W. A. Bechtel Co. v. Stevenson

There was a binding contract for a minimum of 500,000 feet; the delay was not such as to justify repudiation; damages are to be computed by taking the contract price for the minimum quantity ($15,000) less payments already made ($4,019.30) and less the properly ascertained cost of sawing the remaining approximately 260,000 feet; because of defective cost evidence the cause is remitted for a limited reassessment of that sawing cost; appeal allowed in part.

Citation
[1945] SCR 652
Parties
Defendant Appellant: W. A. Bechtel Company and others (carrying on business as Bechtel - Price - Callahan); Plaintiff Respondent: Stevenson & Van Humbeck Sawmill and others
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 June 1945
Procedural Posture
Contract / On Appeal to the Supreme Court of Canada From the Supreme Court of Alberta, Appellate Division
Outcome
Appeal allowed in part.
Legal Topics
Delay in Performance, Repudiation, Measure of Damages, Reference for Reassessment
Source Language
English
Contract Remedies Damages Delay in Performance Repudiation Measure of Damages Reference for Reassessment

Case Brief

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Parties

W. A. Bechtel Company and others (carrying on business as Bechtel - Price - Callahan)

Defendant Appellant

Stevenson & Van Humbeck Sawmill and others

Plaintiff Respondent

Procedural Posture

Contract / On Appeal to the Supreme Court of Canada From the Supreme Court of Alberta, Appellate Division

Legal Issues

  1. 1 Whether delay in performance was such as to warrant repudiation of the contract
  2. 2 How to measure and compute damages for breach of a verbal contract to supply a minimum quantity
  3. 3 Whether prior field orders should be deducted from the contractual minimum quantity

Ratio Decidendi

There was a binding contract for a minimum of 500,000 feet; the delay was not such as to justify repudiation; damages are to be computed by taking the contract price for the minimum quantity ($15,000) less payments already made ($4,019.30) and less the properly ascertained cost of sawing the remaining approximately 260,000 feet; because of defective cost evidence the cause is remitted for a limited reassessment of that sawing cost; appeal allowed in part.

Court Disposition

Appeal allowed in part.

Orders

  • Reference back to trial judge (or assessor) limited to reassessment of the cost of sawing the remaining approximately 260,000 feet of logs.
  • From $15,000 (500,000 ft at $30/1000) deduct $4,019.30 already paid and deduct the cost ascertained on reassessment; judgment to be entered for the resulting balance.