Consumers Cordage Co. Ltd. v. St. Gabriel Land & Hydraulic Co. Ltd.

Consumers Cordage Co. Ltd. v. St. Gabriel Land & Hydraulic Co. Ltd.

The covenant for renewal did not render the agreement contrary to Quebec law or public order; the agreement created a valid subsisting interest for the current twenty‑one year term (renewed 1 March 1935) and, given the resolutory condition permitting Crown reclamation and the Code's recognition of perpetual...

Source-derived case information.

Citation
[1945] SCR 158
Parties
Appellant / Defendant: Consumers Cordage Company Limited; Respondent / Plaintiff: St. Gabriel Land & Hydraulic Company Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 February 1945
Procedural Posture
Appeal Contract / Final Appeal Judgment (supreme Court of Canada)
Outcome
Appeal dismissed; judgment of Court of King's Bench (appeal side) affirmed.
Legal Topics
Lease in Perpetuity, Renewal Clause, Resolutory Condition, Public Domain Water Rights, Illegality and Public Policy, Quantum Meruit
Source Language
english
Contract Property Public Law Civil Law Lease in Perpetuity Renewal Clause Resolutory Condition Public Domain Water Rights +2 more

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Parties

Consumers Cordage Company Limited

Appellant / Defendant

St. Gabriel Land & Hydraulic Company Limited

Respondent / Plaintiff

Procedural Posture

Appeal Contract / Final Appeal Judgment (supreme Court of Canada)

Legal Issues

  1. 1 Whether the agreement constituted a lease in perpetuity contrary to Quebec law/public order
  2. 2 Whether the covenant for perpetual renewal rendered the contract void or voidable
  3. 3 Whether the agreement was valid and subsisting during the current 21‑year renewal period (to 1956)

Ratio Decidendi

The covenant for renewal did not render the agreement contrary to Quebec law or public order; the agreement created a valid subsisting interest for the current twenty‑one year term (renewed 1 March 1935) and, given the resolutory condition permitting Crown reclamation and the Code's recognition of perpetual interests, the appellant was liable for the unpaid rent instalments claimed.

Court Disposition

Appeal dismissed; judgment of Court of King's Bench (appeal side) affirmed.

Orders

  • Appellant to pay respondent $2,000 representing five unpaid instalments, with interest from date of service of the action.
  • Appeal dismissed with costs (costs awarded to respondent).