Collins Bay Rafting and Forwarding Co. v. New York and Ottawa Rway. Co.

Collins Bay Rafting and Forwarding Co. v. New York and Ottawa Rway. Co.

The contract was divisible and, on its proper construction, the defendants having removed one span from the navigable channel and having put one span ashore were entitled to the two $5,000 instalments despite the whole job not being completed in the second season; appeal allowed and trial judgment in favour of defendants on the counterclaim restored.

Citation
(1902) 32 SCR 216
Parties
Appellant / Defendant: Collins Bay Rafting and Forwarding Company, Limited; Respondent / Plaintiff: New York and Ottawa Railway Company; Respondent / Plaintiff (trustee / Stakeholder): William Lesslie
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 May 1902
Procedural Posture
Contract Civil Appeal / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed with costs; judgment below (trial judge) restored in favour of the Collins Bay Rafting and Forwarding Company on counterclaim
Legal Topics
Divisibility of Contract, Completion/time for Performance, Progress Payments / Instalments, Interpretation of Contractual Terms, Security / Deposit
Source Language
English
Contract Divisibility of Contract Completion/time for Performance Progress Payments / Instalments Interpretation of Contractual Terms Security / Deposit

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Parties

Collins Bay Rafting and Forwarding Company, Limited

Appellant / Defendant

New York and Ottawa Railway Company

Respondent / Plaintiff

William Lesslie

Respondent / Plaintiff (trustee / Stakeholder)

Procedural Posture

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

Legal Issues

  1. 1 Whether the contract was divisible or an entire obligation payable only on full completion
  2. 2 Whether time for completion was of the essence or a reasonable time with next season as extension
  3. 3 Whether defendants performed sufficient parts to earn progress instalments ($5,000 each)

Ratio Decidendi

The contract was divisible and, on its proper construction, the defendants having removed one span from the navigable channel and having put one span ashore were entitled to the two $5,000 instalments despite the whole job not being completed in the second season; appeal allowed and trial judgment in favour of defendants on the counterclaim restored.

Court Disposition

Appeal allowed with costs; judgment below (trial judge) restored in favour of the Collins Bay Rafting and Forwarding Company on counterclaim

Orders

  • Appeal allowed with costs
  • Judgment of the High Court of Justice for Ontario (trial judge) restored