City of Montreal v. City of Ste. Cunégonde / City of Ste. Cunégonde v. City of St. Henri / City of Ste. Cunégonde v. Town of Westmount

City of Montreal v. City of Ste. Cunégonde / City of Ste. Cunégonde v. City of St. Henri / City of Ste. Cunégonde v. Town of Westmount

The guarantee in the written agreements bound the higher municipalities for damages resulting both from making the connections and from the subsequent use of the Montreal sewer; the guarantors were not excused by Montreal's delay in constructing additional works; the guarantor's obligation did not require a prior judicial condemnation of Montreal as a condition precedent; and damages were to be apportioned among the municipalities in proportion to the area drained into the Montreal sewer.

Citation
(1902) 32 SCR 135
Parties
Plaintiff; Appellant: City of Montreal; Defendant; Respondent; Plaintiff in Warranty; Appellant: City of Ste. Cunégonde de Montreal; Defendant in Warranty; Respondent: City of St. Henri; Defendant in Warranty; Respondent: Town of Westmount (Côte St-Antoine)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 May 1902
Procedural Posture
Appeal (contract Dispute Involving Municipal Guarantee) / Appeal to the Supreme Court of Canada From the Court of Queen's Bench (appeal Side), Province of Quebec
Outcome
Appeal of the City of Montreal allowed with costs; appeals of the City of Ste. Cunégonde partly allowed without costs; Superior Court judgment in favour of Montreal reinstated in respect of reimbursement; Ste. Cunégonde's warranty claims against St. Henri and Westmount maintained and apportioned.
Legal Topics
Drainage, Inter Municipal Works, Guarantee/indemnity, Continuing Liability, Contribution and Apportionment, Res Judicata
Source Language
English
Contract Municipal Law Tort (damages) Drainage Inter Municipal Works Guarantee/indemnity Continuing Liability Contribution and Apportionment +1 more

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Parties

City of Montreal

Plaintiff; Appellant

City of Ste. Cunégonde de Montreal

Defendant; Respondent; Plaintiff in Warranty; Appellant

City of St. Henri

Defendant in Warranty; Respondent

Town of Westmount (Côte St-Antoine)

Defendant in Warranty; Respondent

Procedural Posture

Appeal (contract Dispute Involving Municipal Guarantee) / Appeal to the Supreme Court of Canada From the Court of Queen's Bench (appeal Side), Province of Quebec

Legal Issues

  1. 1 Whether the guarantee in the sewer connection agreements covered only the act of making the physical connection or also continuing liability for use of the Montreal sewer thereafter
  2. 2 Whether the guarantor's obligation was conditional upon a prior judicial determination (condemnation) against Montreal
  3. 3 Whether postponement by Montreal of constructing additional sewer works relieved the guarantors of liability

Ratio Decidendi

The guarantee in the written agreements bound the higher municipalities for damages resulting both from making the connections and from the subsequent use of the Montreal sewer; the guarantors were not excused by Montreal's delay in constructing additional works; the guarantor's obligation did not require a prior judicial condemnation of Montreal as a condition precedent; and damages were to be apportioned among the municipalities in proportion to the area drained into the Montreal sewer.

Court Disposition

Appeal of the City of Montreal allowed with costs; appeals of the City of Ste. Cunégonde partly allowed without costs; Superior Court judgment in favour of Montreal reinstated in respect of reimbursement; Ste. Cunégonde's warranty claims against St. Henri and Westmount maintained and apportioned.

Orders

  • Reinstate Superior Court judgment ordering City of Ste. Cunégonde to reimburse City of Montreal $3,040.95 (capital, interest and costs)
  • Ste. Cunégonde's warranty actions against City of St. Henri and Town of Westmount maintained and damages apportioned by drained area: Ste. Cunégonde (72 arpents) 1/6 = $506.83; St. Henri (147 arpents) 2/6 = $1,013.65; Westmount (222 arpents) 3/6 = $1,520.47, with interest from date of institution of the principal...