The Pas (Town of) v. Porky Packers Ltd. et al.

The Pas (Town of) v. Porky Packers Ltd. et al.

Respondent failed to establish negligent misrepresentation under Hedley Byrne because the representee (Tawse) possessed equal or superior knowledge and did not reasonably rely on any special skill of municipal officers; the building inspector’s letter did not guarantee lawful use; mayoral undertakings could not bind the municipality; and the transaction was tainted by illegality due to the councillor’s pecuniary interest, so no municipal liability arose.

Citation
[1977] 1 SCR 51
Parties
Defendant Appellant: Town of The Pas; Plaintiff Respondent: Porky Packers Ltd.; Third Parties Respondents: Russell Bruce Tawse; Vallen Joseph Melnick; Albert Lutz
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
30 January 1976
Procedural Posture
Torts (negligent Misrepresentation) / Appeal to the Supreme Court of Canada From Court of Appeal for Manitoba
Outcome
Appeal allowed; action dismissed; appellant awarded costs
Legal Topics
Negligent Misrepresentation, Duty of Care (hedley Byrne), Municipal Liability, Conflict of Interest by Councillor, Municipal Planning and Zoning, Illegality of Contract
Source Language
English
Torts Municipal Law Administrative Law Property/zoning Law Negligent Misrepresentation Duty of Care (hedley Byrne) Municipal Liability Conflict of Interest by Councillor +2 more

Case Brief

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Parties

Town of The Pas

Defendant Appellant

Porky Packers Ltd.

Plaintiff Respondent

Russell Bruce Tawse; Vallen Joseph Melnick; Albert Lutz

Third Parties Respondents

Procedural Posture

Torts (negligent Misrepresentation) / Appeal to the Supreme Court of Canada From Court of Appeal for Manitoba

Legal Issues

  1. 1 Whether town officials made negligent misrepresentations giving rise to liability under Hedley Byrne
  2. 2 Whether the representee reasonably relied on representations by municipal officers
  3. 3 Whether the building inspector’s letter constituted a clear zoning certificate or representation of legality

Ratio Decidendi

Respondent failed to establish negligent misrepresentation under Hedley Byrne because the representee (Tawse) possessed equal or superior knowledge and did not reasonably rely on any special skill of municipal officers; the building inspector’s letter did not guarantee lawful use; mayoral undertakings could not bind the municipality; and the transaction was tainted by illegality due to the councillor’s pecuniary interest, so no municipal liability arose.

Court Disposition

Appeal allowed; action dismissed; appellant awarded costs

Orders

  • Appeal allowed and action dismissed
  • Appellant Town of The Pas awarded costs