General Dairies Ltd. v. Maritime Electric Co. Ltd.

General Dairies Ltd. v. Maritime Electric Co. Ltd.

The Public Utilities Act does not preclude the defence of estoppel; where a utility's billing representations were such that the customer could reasonably be expected to act on them in the ordinary course of its business, and did so to its detriment, equitable estoppel bars the utility from recovering the undercharged balance.

Citation
[1935] SCR 519
Parties
Defendant/appellant: General Dairies Ltd.; Plaintiff/respondent: Maritime Electric Co. Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 June 1935
Procedural Posture
Civil Appeal / Final Appeal to the Supreme Court of Canada
Outcome
Appeal allowed; judgment of the New Brunswick Appeal Division reversed; action dismissed.
Legal Topics
Estoppel by Representation, Statutory Rates and Billing, Mistake in Billing, Change of Position Reliance
Source Language
English
Evidence Public Utilities Law Equity (estoppel) Contract Law Estoppel by Representation Statutory Rates and Billing Mistake in Billing Change of Position Reliance

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Parties

General Dairies Ltd.

Defendant/appellant

Maritime Electric Co. Ltd.

Plaintiff/respondent

Procedural Posture

Civil Appeal / Final Appeal to the Supreme Court of Canada

Legal Issues

  1. 1 Whether estoppel bars a public utility from recovering undercharged amounts resulting from a billing mistake
  2. 2 Whether the Public Utilities Act, R.S.N.B. 1927, c.127, s.16, precludes application of estoppel
  3. 3 Whether the customer reasonably relied on erroneous invoices to its detriment

Ratio Decidendi

The Public Utilities Act does not preclude the defence of estoppel; where a utility's billing representations were such that the customer could reasonably be expected to act on them in the ordinary course of its business, and did so to its detriment, equitable estoppel bars the utility from recovering the undercharged balance.

Court Disposition

Appeal allowed; judgment of the New Brunswick Appeal Division reversed; action dismissed.

Orders

  • Appeal allowed and action dismissed with costs
  • Judgment of the Supreme Court of New Brunswick, Appeal Division, reversed