Richmond Wineries Western Ltd. et al. v. Simpson et al.

Richmond Wineries Western Ltd. et al. v. Simpson et al.

There was a binding contract for sale of 50,000 gallons of loganberry wine as found by the trial judge; Statute of Frauds ss.4 and 17 did not bar enforcement (part performance and capacity for acceleration existed); where no market existed the correct measure under Sale of Goods Act s.56(2) is estimated loss (lost profits), and the trial judge's assessment of damages was not clearly erroneous and must be restored.

Citation
[1940] SCR 1
Parties
Plaintiff/appellant: Richmond Wineries Western Ltd.; Plaintiff/appellant: Eakins Products Ltd.; Defendant/respondent: W. R. Simpson and John A. McKinney (carrying on business as Richmond Wineries); Third Party: Growers' Wine Company Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
30 November 1939
Procedural Posture
Contract (sale of Goods) / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia; Judgment on Appeal Restoring Trial Judgment
Outcome
Appeal allowed; judgment of trial judge restored.
Legal Topics
Existence and Formation of Contract, Assignment and Notice, Statute of Frauds Ss.4 and 17, Measure of Damages for Non Delivery, Lost Profits Estimation, Appellate Review of Factual Findings and Damages
Source Language
English
Contract Sale of Goods Statute of Frauds Damages Existence and Formation of Contract Assignment and Notice Statute of Frauds Ss.4 and 17 Measure of Damages for Non Delivery +2 more

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Parties

Richmond Wineries Western Ltd.

Plaintiff/appellant

Eakins Products Ltd.

Plaintiff/appellant

W. R. Simpson and John A. McKinney (carrying on business as Richmond Wineries)

Defendant/respondent

Growers' Wine Company Ltd.

Third Party

Procedural Posture

Contract (sale of Goods) / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia; Judgment on Appeal Restoring Trial Judgment

Legal Issues

  1. 1 Whether a binding contract existed for sale of 50,000 gallons of wine
  2. 2 Whether Statute of Frauds s.17 (part performance) and s.4 (one-year rule) barred the action
  3. 3 Proper measure of damages for non-delivery where no market available

Ratio Decidendi

There was a binding contract for sale of 50,000 gallons of loganberry wine as found by the trial judge; Statute of Frauds ss.4 and 17 did not bar enforcement (part performance and capacity for acceleration existed); where no market existed the correct measure under Sale of Goods Act s.56(2) is estimated loss (lost profits), and the trial judge's assessment of damages was not clearly erroneous and must be restored.

Court Disposition

Appeal allowed; judgment of trial judge restored.

Orders

  • Appeal allowed and judgment of McDonald J. restored.
  • Damages awarded to plaintiffs in amount fixed at trial.