Trans-Canada Forest Products v. Heaps, Waterous Limited and Lipsett Engine & Mfg. Co.

Trans-Canada Forest Products v. Heaps, Waterous Limited and Lipsett Engine & Mfg. Co.

The fire was caused by a short circuit from defective insulation of battery cables; the mechanic was negligent in making only a casual inspection and failing to ensure the cables remained separated when testing the repaired engine; the mechanics were servants of Lipsett (the general employer) and Lipsett is therefore liable in tort and must indemnify Heaps; Heaps is liable to Trans-Canada for breach of its repair contract; Trans-Canada was not contributorily negligent; damages are reduced to reflect proper valuation (including value of purchase option).

Citation
[1954] SCR 240
Parties
Appellant (lessee and Plaintiff): Trans-Canada Forest Products Limited; Appellant (owner and Plaintiff): Ada Flora Hoff, Executrix of Chris Bergvin Hoff, Deceased; Respondent (local Distributor; Defendant; Contractor): Heaps, Waterous Limited; Respondent (general Distributor; Employer of Mechanics; Defendant; Third Party Defendant): Lipsett Engine & Manufacturing Co. Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
4 January 1954
Procedural Posture
Tort (negligence) and Contract (repair Contract); Third Party Indemnity / Final Appeal to the Supreme Court of Canada (judgment on Appeal)
Outcome
Appeals allowed (majority); trial judge's judgment restored subject to variation of damages
Legal Topics
Negligence, Res Ipsa Loquitur, Master and Servant / Control Test, Indemnity Between Contractors, Contributory Negligence, Assessment of Damages for Lost Option
Source Language
English
Torts Contract Agency/employment Law Remedies (indemnity) Damages Negligence Res Ipsa Loquitur Master and Servant / Control Test +3 more

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Parties

Trans-Canada Forest Products Limited

Appellant (lessee and Plaintiff)

Ada Flora Hoff, Executrix of Chris Bergvin Hoff, Deceased

Appellant (owner and Plaintiff)

Heaps, Waterous Limited

Respondent (local Distributor; Defendant; Contractor)

Lipsett Engine & Manufacturing Co. Ltd.

Respondent (general Distributor; Employer of Mechanics; Defendant; Third Party Defendant)

Procedural Posture

Tort (negligence) and Contract (repair Contract); Third Party Indemnity / Final Appeal to the Supreme Court of Canada (judgment on Appeal)

Legal Issues

  1. 1 Whether the mechanic (Martin) was negligent in testing the repaired engine and handling the battery cables
  2. 2 Whether the repairmen were servants of Lipsett or of Heaps at the time of the fire
  3. 3 Whether Heaps breached its contract with Trans-Canada by negligent performance of repairs

Ratio Decidendi

The fire was caused by a short circuit from defective insulation of battery cables; the mechanic was negligent in making only a casual inspection and failing to ensure the cables remained separated when testing the repaired engine; the mechanics were servants of Lipsett (the general employer) and Lipsett is therefore liable in tort and must indemnify Heaps; Heaps is liable to Trans-Canada for breach of its repair contract; Trans-Canada was not contributorily negligent; damages are reduced to reflect proper valuation (including value of purchase option).

Court Disposition

Appeals allowed (majority); trial judge's judgment restored subject to variation of damages

Orders

  • Appeals by Trans-Canada and Hoff allowed
  • Trial judge's judgments restored but award to Trans-Canada varied: previous figure of 125,653.79 deleted and substituted with 89,653.79