Cockburn v. Trusts and Guarantee Co.

Cockburn v. Trusts and Guarantee Co.

The profit the plaintiff realized from acquiring and reselling the insolvent employer's assets arose out of the breach and was properly taken into account in assessing damages; after accounting for that profit the plaintiff sustained no compensable loss and the appeal is dismissed.

Citation
(1917) 55 SCR 264
Parties
Appellant / Plaintiff: A.A. Cockburn; Respondent / Defendant: The Trusts and Guarantee Company (administrator of Kloepfer's estate referenced)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 June 1917
Procedural Posture
Appeal (civil) / Appeal to Supreme Court of Canada From Appellate Division of Supreme Court of Ontario
Outcome
Appeal dismissed with costs.
Legal Topics
Mitigation of Damages, Guarantee of Salary, Measure of Damages, Personal Service Contracts
Source Language
English
Suretyship Contract Law Employment Law Damages Mitigation of Damages Guarantee of Salary Measure of Damages Personal Service Contracts

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Parties

A.A. Cockburn

Appellant / Plaintiff

The Trusts and Guarantee Company (administrator of Kloepfer's estate referenced)

Respondent / Defendant

Procedural Posture

Appeal (civil) / Appeal to Supreme Court of Canada From Appellate Division of Supreme Court of Ontario

Legal Issues

  1. 1 Whether profits realized by plaintiff from purchasing and reselling employer's assets must be deducted when assessing damages under a guaranty
  2. 2 Extent of the duty to mitigate damages where plaintiff voluntarily undertakes transactions arising from the breach
  3. 3 Whether guarantor liable for full contractual salary despite plaintiff's subsequent gains

Ratio Decidendi

The profit the plaintiff realized from acquiring and reselling the insolvent employer's assets arose out of the breach and was properly taken into account in assessing damages; after accounting for that profit the plaintiff sustained no compensable loss and the appeal is dismissed.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.
  • Judgment of the Appellate Division of the Supreme Court of Ontario affirmed.