City of Toronto v. Consumers' Gas Company of Toronto

City of Toronto v. Consumers' Gas Company of Toronto

The Public Service Works on Highways Act governs compensation where municipal operations are properly characterized as constructing, reconstructing, changing, altering or improving a highway; in such cases the gas company is limited to recovery of one-half of the labour cost only (materials and other losses excluded); construction of the sewers in this case was not, as a matter of fact, an improvement to particular highways within s.2 so relocations occasioned thereby were payable in full, and relocations required by Board of Railway Commissioners' subway construction were not recoverable from the city.

Citation
[1941] SCR 584
Parties
Defendant/appellant: Corporation of the City of Toronto; Plaintiff/respondent: The Consumers' Gas Company of Toronto
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 October 1941
Procedural Posture
Civil Appeal / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal and cross-appeal dismissed with costs (majority); Kerwin J. dissenting in part.
Legal Topics
Highways, Drainage, Relocation of Utilities, Compensation Under Public Service Works on Highways Act
Source Language
English
Municipal Law Public Utilities Statutory Interpretation Highways Drainage Relocation of Utilities Compensation Under Public Service Works on Highways Act

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Parties

Corporation of the City of Toronto

Defendant/appellant

The Consumers' Gas Company of Toronto

Plaintiff/respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether 'highway' in the Act includes city streets
  2. 2 Whether The Public Service Works on Highways Act governs compensation for relocations caused by municipal works
  3. 3 Whether construction of sanitary or storm (surface drainage) sewers constitutes 'constructing, reconstructing, changing, altering or improving any highway' under s.2

Ratio Decidendi

The Public Service Works on Highways Act governs compensation where municipal operations are properly characterized as constructing, reconstructing, changing, altering or improving a highway; in such cases the gas company is limited to recovery of one-half of the labour cost only (materials and other losses excluded); construction of the sewers in this case was not, as a matter of fact, an improvement to particular highways within s.2 so relocations occasioned thereby were payable in full, and relocations required by Board of Railway Commissioners' subway construction were not recoverable from the city.

Court Disposition

Appeal and cross-appeal dismissed with costs (majority); Kerwin J. dissenting in part.

Orders

  • Appeal and cross-appeal dismissed with costs.
  • Judgment of the Court of Appeal for Ontario affirmed.